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3 years ago

True or false:

Business

1 answer:

Sedaia [141]3 years ago

5 0

Answer:

True

Explanation:

Monopolistic competition is a form of competition involving an industry in which products and services offered are similar but not perfect substitutes. This type of industry, is familiarized with customers in their everyday lives.

Monopolistic competition has characteristics between perfect competition and monopoly and firms involved have similar degrees of market power. Firms in this industry are also price makers as producers in this type of industry, have control over the pricing of their goods and services.

Demand is subject to changes in price, indicating that demand is highly elastic in monopolistic competition. Entry and exit barriers are low in a monopolistic competitive industry and decisions made by one firm, does not directly affect the decisions of its competitors.

Restaurants, hair salons, cleaning products are examples in this type of industry.

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Recently, a certain bank offered a 5-year CD that earns 3.26% compounded continuously. Use the given information to answer the q

Maru [420]

Answer:

a. The CD will worth $35,311 in five years.

b. It will take 12.44 years for the account to be worth $45,000.

Explanation:

a) If $30,000 is invested in this CD, how much will it be worth in 5 years?(Round to the nearest cent.)

This can be determined using the formula for calculating the future value (FV) compounding formula as follows:

FV = PV * e^(rn) ................................... (1)

FV = Future value in five years = ?

PV = Present value of amount invested = $30,000

e = Mathematical constant approximated as 2.7183

r = Interest rate = 3.26%, or 0.0326

n = number of years = 5

Substituting the values into equation (1), we have:

FV = $30,000 * 2.7183^(0.0326 * 5)

FV= $35,311

Therefore, the CD will worth $35,311 in five years.

(b) How long will it take for the account to be worth $45,000?(Round to two decimal places as needed)

Also, using equation (1) part a, we have:

FV = Future value in n years = $45,000

PV = Present value of amount invested = $30,000

e = Mathematical constant approximated as 2.7183

r = Interest rate = 3.26%, or 0.0326

n = number of years it will take to have $45,000 = ?

Substituting the values into equation (1), we have:

$45,000 = $30,000 * 2.7183^(0.0326 * n)

$45,000 / $30,000 = 2.7183^(0.0326 * n)

1.50 = 2.7183^(0.0326 * n)

Loglinearise both sides and solve for n, we have:

Log(1.50) = (0.0326 * n)Log(2.7183)

0.176091259055681 = 0.0326 * n * 0.434297385124509

0.176091259055681 = n * 0.014158094755059

n = 0.176091259055681 / 0.014158094755059

n = 12.44 years

Therefore, it will take 12.44 years for the account to be worth $45,000.

6 0

3 years ago

Why is a high-quality bond typically considered a lower-risk investment than a stock?

jasenka [17]

The answer is A.
There is risk involved in owning a stock, and many unknown variables. The value of the stock could plummet, putting your principal investment at risk. There is no guarantee of return on investment, and even well-established companies have had to cut dividends during difficult times.

In the case of bonds, you are guaranteed by the bond issuer that your principal and the agreed-upon interest will be paid at a defined time. Excluding the event of bankruptcy (and still likely in this case), you are virtually guaranteed that the entity will pay you according to the agreed-upon terms. For this reason, bonds are considered a much lower risk investment.

Why then, do many people choose to invest at least part of their portfolio in stocks? Stocks generally have a much high expected return, and many people consider this increased return worth the increased risk that with it.

7 0

4 years ago

Read 2 more answers

Adidea Corp. regularly buys merchandise from vendors. It just purchased 1,000 units on credit from one of its vendors. How will

Ostrovityanka [42]

Answer:

Vendor's account/ accounts payable

Explanation:

Merchandise is an asset to the company. An increase in assets is debited to that particular merchandise or inventory account.

Since the merchandise was bought on credit, liabilities will increase. An increase in liabilities is credited to the specific vendor's account who supplied the goods on credit.

8 0

3 years ago

A spotter stands near the lifter with his feet wide and hands near the lower back. He pays careful attention to the bar and make

patriot [66]

Hello!

This is most likely a spotter for a squat. The key word that shows that this spotter is for a squatter is making sure the lifter does not fall backwards. An overhead press or bench press would require a lifter to be lying down and not standing. A dead lift requires leaning forward and would not cause a lifter to fall backwards.

Hope this helps!

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4 years ago

The information about the national debt has helped convinced many modern economists that

IceJOKER [234]

The costs of the federal government have exceeded the benefits offered.

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3 years ago