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Neko [114]
4 years ago
14

Which of the following statements is true? a. The higher the discount rate, the higher the present value. b. The process of accu

mulating interest on interest is referred to as discounting. c. If money is worth 10% compounded annually, $1,100 due one year from today is equivalent to $1,000 today. d. If a single sum is due on December 31, 2020, the present value of that sum decreases as the date draws closer to December 31, 2020.
Business
1 answer:
RSB [31]4 years ago
4 0

Answer:

C

Explanation:

Compound interest is a practice of reinvesting the the principal amount and the interest earned instead of paying out the interest . With this method , the total value of money increases with time.

However , the value of the money (principal +interest ) in the first year sing this method is the same as the simple interest method.

If a money is worth 10% compounded annually . $1100 in one year is $1000 today.

Workings

Interest rate - 10%

One year value (100%+10%) - $1100

Current value = 100/110*1100

= $1000

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Was an American novelist<span>, </span>short-story writer<span>, and </span>poet. <span>Farrell based his writing on his own experiences, particularly those that he included in his celebrated "Danny O'Neill Pentology" series of five novels.</span>
8 0
3 years ago
Suppose the consumer price index (CPI) stands at 240 this year. If the inflation rate is 5 percent, then next year's CPI will eq
denis23 [38]

Answer:

c. 252

Explanation:

Calculation of what the next year's CPI will equal

Using this formula

Next year's CPI=[Consumer price index (CPI) +(Consumer price index (CPI) *Inflation rate

Let plug in the formula

Next year's CPI=[240+(240*5%)]

Next year's CPI=240+12

Next year's CPI=252.

Therefore the next year's CPI will equal 252

4 0
3 years ago
A(n) dr plan ensures that critical business functions continue if a catastrophic incident or disaster occurs. _____
shusha [124]

A(n) dr Business Continuity Plan ensures that important commercial enterprise functions continue if a catastrophic incident or catastrophe happens.

A business is described as an enterprise or enterprising entity engaged in industrial, industrial, or expert activities. companies can be for-earnings entities or non-profit agencies. business sorts a variety from limited liability businesses to sole proprietorships, agencies, and partnerships.

An enterprise reason describes the cause, or reason, that an organization becomes, to begin with based. It describes what makes a commercial enterprise precise, in addition to what the commercial enterprise plans to do. A business case isn't always an undertaking or price announcement and is a good deal shorter than each. commercial enterprise ethics refers back to the standards for morally right and wrong behavior in business. law partially defines the conduct, however “legal” and “moral” are not always the same. commercial enterprise ethics enhances the law by outlining acceptable behaviors beyond government control.

Learn more about business here:

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7 0
2 years ago
A company has the following cost information: Units produced and sold 10,000 Direct materials $75,000 Direct labor hours per uni
Delicious77 [7]

Answer:

The total period cost is $105000.

Explanation:

Total period costs (TPC) = Fixed manufacturing overhead (FMO) + (Variable selling and administrative expenses × units sold)  +  Fixed selling and administrative expenses.

Now insert all the values in the above formula.

Total period costs = $25,000 + ($6 × 10,000) + $20,000

Total period costs = $25,000 + $60,000 + $20,000

therefore, the Total period costs = $105,000

5 0
3 years ago
Janet decides to sow grass in a rectangular plot of her garden that has a length of 30 ft and height of 25 ft. It costs her $9.5
Serga [27]

Answer:

No

Explanation:

If Janet Decides to make height and base half, then the area is multiplied by 1/4.

New height according to Janet = 25 ft / 2 = 12.5 ft

New Length of garden = 30 ft / 2 = 15 ft

Area of garden = Length x height

= 15 x 12.5

= 187.5  

Total amount spend on this land = Area of garden x Cost

= 187.5 x $9.50

= $1781.25

Therefore, she will have to pay $1781.25

6 0
4 years ago
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