Answer:
To find the simple interest, we multiply $10000 × 0.08 × 5 to get that: $4000 is the interest gained after 5 years.
The final capital or future value would be $14.000.
Answer:
PV=$237,228.84
Explanation:
Giving the following information:
Annual payment= $25,000
Number of periods= 15 years
Interest rate= 7.5%
<u>To calculate the value of the payments today (PV), we need to use the following formula:</u>
<u></u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]} * (1+i)
PV= 25,000*{(1/0.075) - 1/ [0.075*(1.075^15)]} * 1.075
PV=$237,228.84
Answer:
The answer would be PRICE SIGNALING
Explanation:
Price signaling may occur when consumers have imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as the product’s price. We examine the scenario whereby the firm can endogenously change consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect is pronounced in the downward direction, meaning that price signaling causes prices to respond less to cost decreases than cost increases.
Club med inc. talks to its present and potential customers to assess their needs for its products. Then it develops products to satisfy those needs. The firm is thus applying the Marketing concept.
<h3>
What is Marketing concept?</h3>
The marketing notion refers to the process that a business uses to maximize profit by boosting sales, meeting consumer needs, and outperforming competitors. The goal is to establish a condition that is advantageous to both the customer and the business. The goal of the marketing concept is to better predict and fulfill customers' needs and wishes than the competition. The Adam Smith book Wealth of Nation served as the primary inspiration for the marketing ideas. It was not discovered till the 21st century.
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Answer and Explanation:
The Securities Investor Protection Corporation enhance security for the registered broker and distributor customers and national securities exchanges members
In the given situation, it is mentioned that a customer has 4 accounts i.e person cash account, person margin account, cash account jointly with his wife and custodial account for two children
Now if the firm liquidates, the (Securities Investor Protection Corporation) SIPC covers all accounts but separately i.e both person accounts are count as one by adding them, the joint account as an individual and the custodial account as an individual