Rhonda would like to sell her existing digital camera to upgrade to a more sophisticated one by advertising on the bulletin boar
d in the student center. She decides against it because the used digital cameras listed on the board are underpriced. This describes the problem of________.
Rhonda would like to sell her existing digital camera to upgrade to a more sophisticated one by advertising on the bulletin board in the student center. She decides against it because the used digital cameras listed on the board are underpriced. This describes the problem of__Adverse selection______.
Explanation:
Adverse selection is the situation whereby one party in a negotiation process has the relevant, important, and necessary information that the other party lacks about product and services, usually in favor of the seller.
The annuity exclusion ratio is ($4,800/($100*240))= 20% return of capital per payment. Hence, $80 of the $100 monthly payment is include in gross income
