All categories

3 years ago

You are considering investing in a European bank account that pays a nominal annual rate of 18%, compounded monthly.

Business

1 answer:

kumpel [21]3 years ago

6 0

Answer:

d. 38

Explanation:

This is an Annuity Due type of question. You get the hint from the statement "....$5,000 at the beginning of each month," In an Annuity due , the recurring payments occur at the beginning of the period i.e annually, quarterly or (monthly in this case)

So using a financial calculator on "BGN" mode

nominal rate of 18% is the I/Y. However, since it is monthly compounded, convert it to a monthly rate.

I/Y = 18%/12 = 1.5%

PMT; recurring cashflow = -5,000

FV; future value = 250,000

PV ;present value = 0 (note: in annuity, use 0 for the variable not given)

then CPT N = 37.16

Therefore, it will take approximately 38 months

You might be interested in

After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased shar

Crank

Answer:

The correct answer is letter "D": Price will increase, and quantity will increase.

Explanation:

If a natural disaster cuts the supply for water in a region, bottled water will face an increase in its quantity demanded as a substitute. Besides, due to scarcity, the bottled water is likely to face an increase in its price, thus, the equilibrium price of bottled water increases.

6 0

3 years ago

What is the term used to describe the linking of key product or service requirements to process capabilities?

Igoryamba

Answer:

Product or service profiling.

Explanation:

Product or service profiling is the term used to describe the linking of key product or service requirements to process capabilities.

Generally, most organizations and business owners use the product or service profiling strategy to enhance consistency through the identification of their key services or product line and as such are avail the opportunity to select the appropriate process, procedures and techniques to achieve their goals and objectives successfully.

3 0

2 years ago

If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demanded of that product, will anot

Bad White [126]

Answer:

Explanation:

to determine if another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded, we have to determine the price elasticity of demand.

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

8% / 10% = 0.8

demand in inelastic so a 10% reduction in price would lead to a less than 8% change in quantity demanded

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

8 0

3 years ago

Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces mod

Tasya [4]

Answer:

True

Explanation:

Intel is a major computer hardware supplier in the world, and its friend Microsoft buys hardware parts from them which it uses in manufacturing computers such as processor chips.

In respect to the bargaining power of suppliers in Porter's five forces model of industry competition, Intel acts as a supplier to Microsoft. And because of Intel's bargaining power like its market dominance and limited competitors, it can set prices which the–Microsoft has no choice but to purchase.

4 0

3 years ago

Which of the following is a challenge of marketing through online social networks?

sdas [7]

Idk I can’t see the choices sorry which I could help

8 0

3 years ago