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scoundrel [369]
3 years ago
5

You have agreed to loan some money to a friend at a simple interest rate of 150% which is outrageous but still about half of the

payday loan places! To make it easy on your friend who never took Math 140 you tell him you'll give him some money now and he just needs to pay you back a nice even $500 in 4 weeks. How much money do you hand him?
Business
1 answer:
Cerrena [4.2K]3 years ago
8 0

Answer:

We give our friend 437.5 dollars

Explanation:

We have to discount from 500 dollar the interest over time, as the 500 is the value our friend will return in 4 weeks ( a month) not the amount received Hence:

nominal x discount rate x time = discount

being rate and time in the same metric

rate is annual so we express time in portion of a year

500 x -1.5 x 1/12 = -62,5‬

We have to discount 62.5 dollar from the nominal

nominal less discount = present value

500 - 62.5 = 437.5

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2. Three years ago, Shawheen deposited $5,000 in a savings account. Today, the account is worth
AnnyKZ [126]

The amount of money Shawheen deposited in his savings account increased in value because of the interest rate his account earns.

The initial deposit might have a higher purchasing power because of inflation.

When money is deposited in a savings account, the amount of money earns interest.

The value of the interest rate can be determined using this formula: interest earned / (time x amount deposited)

Interest earned = $$5,306.04 - $5,000 = $306.04

Interest rate = $306.04 / (3 x $5000) = 2.04%

Inflation is the persistent rise in the general price levels. Inflation reduces the purchasing power of money.

To learn more about inflation, please check: brainly.com/question/18072639

4 0
2 years ago
Which of the following statements is FALSE?
trapecia [35]
The answer is
D. Pre-incident activities include planning to prepare and establish a JIC in every incident requiring emergency response.
6 0
2 years ago
Coffee and tea are substitutes for consumers. An increase in the price of coffee coupled with an increase in the number of tea g
hammer [34]

Answer:

Explanation:

As the coffee prices are relative higher than what it actually ends up paying, person will pay above their face value to obtain. Same will apply  the same idea for that concept.

As tea is also icnreases we will pushed there.

In the long term we should review how this is done as usually end up here and allone

Therefore the compete sentences will be:

An increase in the price of coffee coupled with an increase in the number of tea growers the lower adverzare will occur within a year Also, we could check for it at 12.600

6 0
3 years ago
5. Imagine you are buying a new guitar. Describe how you would make the purchase using the
Sholpan [36]

Answer:

What I would do is make sure it is a good quality item and see if it is worth my money after that I would go to the cashier and buy my product.

Explanation:

4 0
3 years ago
Ski Safety sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its co
UkoKoshka [18]

Answer: Cost focus strategy

Explanation:

 The cost focus strategy is one of the type of business strategy in which the various types of companies or organizations are try to expand their marketing segments and also emphasizing the cost in the market.  

 The cost focus strategy is one of the important element and component  of the generic marketing strategy in the market.  

According to the given question, the ski safety selling the various types of products for the rescue purpose and it outlining the main objective and start selling on the basis of emergency at very high cost.

Therefore, Ski safety is basically pursing the cost focus strategy.

8 0
3 years ago
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