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Natasha2012 [34]
3 years ago
15

Calculate the future value of $1,000 in a. Four years at an interest rate of 7% per year. b. Eight years at an interest rate of

7% per year. c. Four years at an interest rate of 14% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? b. Eight years at an interest rate of 7% per year. The future value of $1,000 in 8 years at an interest rate of 7% per year is (Round to the nearest dollar.) c. Four years at an interest rate of 14% per year. The future value of $1,000 in 4 years at an interest rate of 14% per year is (Round to the nearest dollar.) d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (Select the best choice below.) A. This results because you earn interest on past interest. Since more interest has been paid at the end of the time period than at the beginning, the money grows faster. B. The interest earned in part (a) is based on a lower effective annual interest rate. C. The annual interest rate in part (b) is slightly higher than the rate assumed in part (a). This is because of compounding D. The amount of interest earned in part (a) is really half of the amount of interest earned in part (b) since in part (b) the money grows for twice as many years as in part (a).
Business
1 answer:
sergij07 [2.7K]3 years ago
7 0

Answer:

We need to use the future value of an investment formula:

F = PV (1 + i)^{n}

Where:

  • F = Future value
  • PV = Present value
  • i = interest rate
  • n = number of compounding periods

a. Four years at an interest rate of 7% per year.

F = 1,000 (1 + 0.07)^{4} \\F = 1,310

b. Eight years at an interest rate of 7% per year.

F = 1,000 (1 + 0.07)^{8\\\\

F = 1,718

c. Four years at an interest rate of 14% per year.

F = 1,000 (1 + 0.14)^{4} \\F = 1,688

d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

The correct answer is A.

Because compound interest capitalizes. This means, that the interest earned in the first year becomes part of the principal, and from that increased principal amount, the new interest rate for the second year is calculated.

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Consider a second hand car market where three types of cars are being sold: High quality (H), medium quality (M) and low quality
Ann [662]

Answer:

a) Determine which type of cars will be sold at the efficient allocation.

All cars would be sold in a Pareto efficient allocation.

In a Pareto efficient market, resources are all allocated in the most efficient possible way. This is the reason why this is just a theoretical concept that does not necessarily apply in real life.

b) Determine which type of cars will be sold at the market equilibrium.

Since consumers are only willing to pay up to $1,620 for a used car, only medium quality and low quality cars will be sold. The price of high quality used cars is higher than the equilibrium price.

Explanation:

the most a buyer would be willing to pay for a used car is ($1,800 x 40%) + ($1,600 x 30%) + ($1,400 x 30%) = $720 + $480 + $420 = $1,620

3 0
3 years ago
A. Identify a profession b. In not more than 60 words, describe the "art" and "science" of such profession in (a).
zheka24 [161]

Answer:

Comedy as a Profession is a great example.

Explanation:

The science of it is related to the psychology of what makes people laugh.

If studied, one would realize that there are certain things that are bound to make people laugh (all things being equal). An example is when a person makes fun of themself to an audience.

To explain this, scientists have stated that it is inherent in humans to laugh at the misfortune of others. However, this is just a theory and does not explain why we laugh at other kinds of comedy.

A plausible explanation (which is more recent in the parlance of psychology) is that people also laugh when certain expectations are defied in a very witty manner.

As a professional stand-up comedian, knowing all the rules and tricks is just one part of the coin. Being able to, either by practice or repeated efforts during practice, internalize these principles, practice them and effectively use them is the artistic part of the picture.

There those who are gifted naturally with a principle thought process that elicits laughter from others, would be termed hilarious. However, to make a living out of comedy, one would need to fully understand the principles and practice to deliver them as naturally as possible.

Another paradigm to the art of comedy is that, it has to be very witty. Wit many times may come with an element of suprise... a new angle that was previously "unthought" of.

Cheers!

6 0
2 years ago
What is the major purpose of a bank reconciliation statement?
lara31 [8.8K]
Purpose of a bank reconciliation statement.
A bank reconciliation statement is used to compare your record to those of your bank to see if there is difference between the two sets of records. The ending balance of your version of cash records is known as the book balance while the bank`s version is known as bank balance. It is common for there to be a difference in the two balances. The results to the differences might be due to overdrawn bank account, bounced checks and overdraft fees. It is important for you to check the difference because there might be substantial variance between the amount you think you have and that the bank thinks you have. In some cases the bank may even elect to close down your account. 
3 0
3 years ago
Three sources of flexibility in completing primary and support activities are particularly useful for firms using the integrated
AURORKA [14]

Answer:

The correct answer is: b. flexible manufacturing systems, total quality management, and information networks.

Explanation:

A Flexible Manufacturing System or FMS is a group of interconnected workstations through an automated material transport system.  The transport system, as well as other storage systems that can be used, must be automatic. The whole set is controlled by computer

It is known as total quality management to a business management strategy that consists of the study and assessment of the concept of quality in each of the phases of an organizational process. Its purpose is the constant improvement of goods and services offered and the achievement of greater customer satisfaction.

6 0
3 years ago
Once a project is underway, the project manager is responsible for the:_______a. people. b. cost. c. time. d. All of these
kati45 [8]

Answer:

I think the answer is D. All of the above

Explanation:

5 0
3 years ago
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