Answer: A. $250 million
Explanation:
The firm is a Monopoly and is lobbying Congress to remain that way. As a monopoly it makes $10 million a year and wants to remain a monopoly for the next 25 years.
Assuming there is no discount rate which means that the value of money stays the same over the 25 years, if they succeed in Congress, they have a chance to make a total profit of,
= 10 million * 25 years
= $250 million
If the maximum amount the firm can make if the lobbying is successful is $250 million, this is the maximum they will pay to lobby for a deterrence to entry. If they pay any amount more than $250 million, they will be making a loss and therefore it would make no sense to spend that amount of the lobbying.
15.79 % is the rate that bank is requred to give to potential borrowers
<u>Explanation:</u>
![A P R=m\left[(1+E A R)^{1 / m}-1\right]](https://tex.z-dn.net/?f=A%20P%20R%3Dm%5Cleft%5B%281%2BE%20A%20R%29%5E%7B1%20%2F%20m%7D-1%5Cright%5D)
![\mathrm{APR}=365\left[(1+.171)^{1 / 365}-1\right]](https://tex.z-dn.net/?f=%5Cmathrm%7BAPR%7D%3D365%5Cleft%5B%281%2B.171%29%5E%7B1%20%2F%20365%7D-1%5Cright%5D)
![A P R=365\left[(1.171)^{0.00273972602}-1\right]](https://tex.z-dn.net/?f=A%20P%20R%3D365%5Cleft%5B%281.171%29%5E%7B0.00273972602%7D-1%5Cright%5D)
![\mathrm{APR}=365 *[1.00043258-1]](https://tex.z-dn.net/?f=%5Cmathrm%7BAPR%7D%3D365%20%2A%5B1.00043258-1%5D)
, APR = 0.1578917
Or 15.79% (it is rounded off )
<u>Where:
</u>
EAR = effective annual rate
APR = Annual percentage rate
M = number of compounding
Therefore, the interest of rate that the bank is required by law in order to report to all the potential borrowers is 15.97%
According to conventional wisdom regarding asset allocation by age, you should hold a proportion of stocks equal to 100 minus your age. Therefore, if you are 40 years old, 60% of your portfolio should consist of equity. Criteria might be better changed to 110 minus your age or 120 minus your age because life expectancy increasing.
By deducting your present age from 100, you can utilize rule of thumb to determine your asset allocation. It implies that as you get older, you should shift away from equity funds and toward debt funds and fixed income assets in your asset allocation.
To learn more about asset allocation, click here
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Answer:
A. is a market because buyers and sellers are brought together to buy and sell.
Explanation:
The definition of market is that it is a place where sellers of products and services meet with potential buyers. Acording to this definition, Ebay can be considered a market because in this website there are sellers offering different types of products and buyers willing to pay in order to get them.
