Ratio and proportion is a useful method in determining a value using a known constant in ratio form. In this case, the ratio of cost to price is always 1/4. Hence, the solution goes as follows:
1/4 = 33.85/price
Price = 33.85*4
Price= $135.4
Options:
A. $20
B. $200
C. $40
D. $400
Answer:C. $40
Explanation: Opportunity cost is a term used in Economics to describe the value of the next most profitable alternative of this an investor puts his or her resources into,in this case the opportunity cost for Bubba is the percentage of the interest which Bubba earned from the interest.
Opportunity cost for Bubba can be calculated as follows
(2%/100)* $2,000=$40.
Opportunity cost helps economists to ensure that resources are effectively put to use.
The future value of an ordinary annuity of $60 paid at the end of each quarter for 3 years, if interest is earned at a rate of 4%, compounded quarterly will be 907.2$
<h3>What is Compounding?</h3>
Compounding is the method through which interest is added to both the principle balance already in place and the interest that has already been paid. Thus, compounding can be thought of as interest on interest, with the result that returns on interest are magnified over time, or the so-called "magic of compounding." After a year, you would receive $10 in interest if you deposited $1,000 into an account with a 1% annual interest rate. Compound interest allowed you to earn 1 percent on $1,010 in Year Two, which amounted to $10.10 in interest payments for the year.
Hence, The future value of an ordinary annuity of $60 paid at the end of each quarter for 3 years, if interest is earned at a rate of 4%, compounded quarterly will be 907.2$
To learn more about compounding click,
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