Answer:
Option (d) $16,008.17
Explanation:
Data provided in the question:
The price of the Firebird in 1969 = $2,500
Price index in 1969 = 36.7
Price index in 2013 = 235
Now,
The price of the Firebird in 2013 dollars will be
= [ Price index in 2013 ÷ Price index in 1969 ] × The price of the Firebird in 1969
= [ 235 ÷ 36.7 ] × $2,500
= 6.40327 × $2,500
= $16,008.17
Hence,
Option (d) $16,008.17
Option 1: PV = $400,000
Option 2: Receive (FV) $432,000 in one year
PV = FV(1/(1+i)^n), where i= 8% = 0.08, n = 1 year
PV = 432,000(1/(1+0.08)^1) = $400,000
Option 3: Receive (A) $40,000 each year fro 20 years
PV= A{[1-(1+i)^-n]/i} where, n = 20 years
PV = 40,000{[1-(1+0.08)^-20]/0.08} = $392,725.90
Option 4: Receive (A) $36,000 each year from 30 years
PV = 36,000{[1-(1+0.08)^-30]/0.08} = $405,280.20
On the basis of present value computations above, option 4 is the best option for Kerry Blales. This option has the highest present value of $405,280.20
This question is a bit tricky to answer because it does not state how often interest rate is applied so lets say for the simple 5% interest rate the rate of interest was calculated after 2 years you would pay a total interest of $15 since interest was only calculated once but for the 3% calculating every year with compound it would be a total of 18.27 dollars in interest but then you would have to calculate the 5% simple interest the same way which would total to $30 if calculated once a year being more than the 3% compound. But lets say interest is calculated once a month your total for the 5% simple interest would be $360 dollars interest for those 2 years and the 3% compound would be $406.97 dollars in interest. So over all the less amount of times interest compounds the less interest there is making it more worth than the simple but if the compounding occurs more frequently the simple 5% interest is more worth it. In this situation I think it might just be yearly interest which makes the 3% compound more worth taking for this short amount of time.
Prices communicate info and provide incentives to buyers and sellers. And sometimes there negotiating involved. High prices are signals to producers to produce more and buyers to buy less. Low prices are signals for producers to produce less and for buyers to buy more.
Answer:
Your answer is going to be c.
Explanation:
as soap is meant to wash away germs it has to first kill them.
