The original price would be 400$ :)
Answer:
<em>The difference between </em><em><u>simple</u></em><em> interest and compound interest is that the amount of compound interest earned gets (bigger or smaller) </em><em><u>bigger</u></em><em> every year.</em>
________________________________
<em>What</em><em> </em><em>is </em><em>simple</em><em> </em><em>interest?</em>
<em>Simple interest. Money paid only on principal, or money borrowed or invested.</em>
<em>What</em><em> </em><em>is </em><em>compound </em><em>interest?</em>
<em>T</em><em>he </em><em>interest </em><em>which </em><em>is </em><em>a</em><em>dded </em><em>to </em><em>the </em><em>initial </em><em>investment</em><em>,</em><em> </em><em>so that this will gain interest in subsequent time periods.</em>
Answer: Option A
Explanation: In simple words, intertemporal decision making refers to the study of how the decision made by an individual today affects the choices that he or she have in the future. It is based on the assumption that less consumption today will bring significant increase in consumption tomorrow.
In the given case, despite of having enough income to lead a healthy lifestyle in present,Lee decided to save his money in the future. This will lead to choices fro him that will give him higher utility.
Hence from the above we can conclude that the correct option is A.
Answer:
The value of the bond is 1,003.8771 after subtracting the accrued interest to the market value of the bond.
Explanation:
From the amount provide by the Wall Street Journal there are two component, the bonds value and the interest accrued over time.
we should calcualte the interst and subtract to get the bond value:
principal x rate x time = interest
rate and time should match, so the 5% rate should be convert into a 2.5% rate and we express time as portion of 182 days:
1,000 x 0.025 x (22-7)/182 = 2,060439 = 2.060439 interest
1,005.9375 - 2.0604 = <em>1,003.8771</em>
<span>Business incubators are a time honored tradition and have been around since the early 1700s.
</span>
Ans: its true