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IgorLugansk [536]
3 years ago
7

You can buy a $50savings bond today for $25 and redeem the bond in 10 years for its full facevalue of $50. You could also put yo

ur money in a money market account that pays7% interest per year. Which option is better assuming they are of equal risk?a. The money market accounnt is better because it pays more interest.b.. The money market account is better because it requires a smaller investment.c. The savings bond is better because it earns a higher interest rate.d. The money marketand savings bond both earn 7% interest, so they are equal in value.
Business
1 answer:
Alexxx [7]3 years ago
7 0

Answer:

The correct option is D,the money market and savings bond both earn 7% interest so they are equal.

Explanation:

In deciding the option that is preferable ,we need to need the rate of interest offered by the savings bond with which we can compare to the return offered by the money market account.

Using financial calculator, rate=rate(nper,,-pv,fv,1)

Please take close look at the usage of double commas and 1 in the formula.

nper= number of years=10 years

pv=$25

fv=$50

rate=rate(10,,-25,50,1)

rate=7%

The money market and savings bond both earn 7% interest so they are equal in value

To understand how this is done in excel ,find attached.

Download xlsx
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Consider This) Susie purchased a nonrefundable ticket to a soccer match for $20. It will cost her $10 worth of gas and wear and
kumpel [21]

Answer:

The $20 ticket to the match.

Explanation:

The sunk cost would be the $20 ticket to the match.

3 0
3 years ago
Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wil
Hatshy [7]

Answer:

an externality

Explanation:

Externality -

It is the cost or the benefit received by the third party , is known as externality .

The third party does not have any control over the creation of the cost or the benefit .

The externality can be negative as well as positive and can arise from the production or consumption of the services and goods .

hence , the correct term fro the given statement is an externality .

5 0
4 years ago
A city sells $15 million of general obligation bonds on October 1, 2019. The bonds mature at the rate of $1 million a year each
alexgriva [62]

Answer:

The multiple choices are:

a.$15,000,000

b.   $14,000,

c.    $13,750,000

d.   $0

The correct option is D,$0

Explanation:

The city by all standards should have adopted a modified accrual basis of accounting where amounts owed in terms of principal and interest payments are not recorded in the necessary books of accounts until they become due.

As at 30,2020,the amount due in respect of the loan has been recorded and paid off,hence as at 31st December,2020,no amount is due in respect of the general obligation bonds issued,hence no recording would be effected until next obligation date when the amount to be paid is due

4 0
4 years ago
A real estate investor researches 4-plex apartment complexes in a city and finds that from 2000 to 2012, the average price of th
Dahasolnce [82]

Answer:

221,672

Explanation:

To find the rate of increase, find differential of p(t)

p(t)= 0.15e^(0.2t)

dp/dt= 0.03e^(0.2t)

at t=10

dp/dt= 0.03e^(0.2×10)

dp/dt= 0.03e^2

dp/dt= 0.221672 million dollars

dp/dt= 221,672

4 0
4 years ago
Read 2 more answers
Your grand opening flyer should be
muminat

Answer:

Option A.

Explanation:

A flyer refers to a type of paper advertisement, which is normally used for wide distribution and it is spread by either handing it out manually in a public place, plastered on walls, or sent through the mail in order to create awareness and offer information about a business on a large scale.

In order for a flyer to be effective, it should have the following qualities:

1. A design that is simple and unique, with a language that is easy to understand.

2. Good use of the space on the flyer.

3. Relevant details about the business must be included.

4. Use of correct spelling and grammar, which must not be misleading.

From the explanations above, we can see that the correct option is A.

7 0
3 years ago
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