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Illusion [34]
3 years ago
12

Ted has always had difficulty saving money, so on June 1, Ted enrolls in a Christmas savings program at his local bank and depos

its $750. That money is totally locked away until December 1 so that Ted can be certain that he will still have it once the holiday shopping season begins. Suppose that the annual rate of interest is 10 percent on ordinary savings accounts (that allow depositors to withdraw their money at any time). How much interest is Ted giving up by precommitting his money into the Christmas savings account for six months instead of depositing it into an ordinary savings account?
[Hint: If you invest X dollars at an annual interest rate of Y percent, you will receive interest equal to X × Y, where the interest rate Y is expressed as a decimal.]
$.___________.
Business
1 answer:
Anika [276]3 years ago
3 0

Answer:

Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account

Explanation:

Step 1: Determine interest amount

The formula for calculating interest is as follows;

I=PRT

where;

I=interest

P=principal

R=annual interest rate

T=number of years

In our case;

P=750

R=10%=10/100=0.1

T=From June 1 to December 1=6 months=0.5 years

replacing;

I=(750×0.1×0.5)=$37.5

Step 2: Determine total amount Ted will have for the two scenarios

case 1

Christmas savings program=750

Ordinary savings account=(750+37.5)=787.5

Ted is giving up an interest of 37.5 by pre-committing his money to a Christmas savings account

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Answer and Explanation:

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According to the​ "rule of​ 70", how many years will it take for real gdp per capita to double when the growth rate of real gdp
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Read 2 more answers
a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects
lidiya [134]

If the publisher actually sells 1300 textbooks:

  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

  • A. the publisher will lose money on the sale of the textbooks.
  • B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
  • D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

#SPJ4

3 0
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