Answer:
Compound interest pays interest on the principal and the interest
Explanation:
Compound interest is preferred because it calculates interest on the principal amount and the accrued interest. In compounding interest, the interest earned in the period is added to the principal to become the new principal amount. Interest earned at the end of every year will higher than the previous period as the principal amount increases at the beginning of a period.
Interest earned by the compound interest method grows much faster compared to the fixed-rate interest method. Investors wishing to have better returns from their savings will prefer the compound interest method.
Answer: Sell at lower price
Explanation:
Marginal Utility is the amount of satisfaction that her customers will get with every additional unit of bread purchased.
If the marginal utility decreases, her customers will buy less bread because to them, it is not as valuable anymore. If she offers her bread at lower prices, the customers would buy more because the new price will align with the lower utility the customers get from the additional loaves.
Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a long-term venture. Often times, a prospective project's lifetime cash inflows and outflows are assessed in order to determine whether the potential returns generated meet a sufficient target benchmark, also known as "investment appraisal
Answer:
normative control
Explanation:
Normative control refers to using the values that the employees share as standards instead of using policies to influence the desired behaviors. According to this, the answer is that this is an example of normative control because Gary employs people that share certain values and behaviors and these become the standard to perform their jobs.
Answer: $2550
Explanation:
Note that the probabilities of total loss and 50% damage were tripled and the probability of no fire has therefore changed to:
1 - 0006 - 0.024 = 0.97.
The company wants to keep same annual gain from the policy ($750), and the question now is, what would the new premium (N) be which will satisfy this? To get this, we need to solve the equation for:
N:750 = (N - 100,000)(0.006) + (N - 50,000)(0.024) + N(0.97)
Thus, 750 = N - 600 - 1,200, or N - 1,800. Therefore,N= 750+1,800= 2,550.
To account for the added risk which the insurance company is taking by continuing insuring the customer, the premium changes from $1,350 to $2550
