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4 years ago

Which of the following options is a better purchase for a bicycle?

Business

1 answer:

Bess [88]4 years ago

6 0

Answer:

Option 3: $12 down with equal payments of $5 for 12 months

Explanation:

In option 1 :

The cost is $ 88,

In option 2 :

Down payment = $ 5,

Weekly payment = $ 8,

Number of weeks = 10,

So, the total cost = 5 + 8 × 10 = 5 + 80 = $ 85,

In option 3 :

Down payment = $ 12,

Monthly payment = $ 5,

Number of months = 12,

So, the total cost = 12 + 5 × 12 = 12 + 60 = $ 72,

In option 4 :

Down payment = $ 20,

Monthly payment = $ 20,

Number of months = 12,

So, the total cost = 12 + 20 × 12 = 12 + 240= $ 252

∵ 72 < 85 < 88 < 252

Hence, option 3 is better.

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Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo

jonny [76]

Answer:

Dividends are fixed. ⇒ Consistent with Debt

Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.

Usually has no specified maturity date ⇒ Consistent with Equity.

Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.

Cost of preferred stock.

Preferred stock is like a perpetuity. The cost of preferred stock is therefore:

= Constant dividend / Price of stock

= 13 / 130.45

= 9.97%

= 10%

8 0

3 years ago

How can a computer system make documenting orders more efficient?

djyliett [7]

by automatically generating shipping forms

4 0

3 years ago

Read 2 more answers

Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 3.5 percent;

WARRIOR [948]

Answer:

20 years (scenario A) and 16 years (scenario B)

Explanation:

The real GDP will double in "n" number of years, with "n" estimated by interpolation using the formula below.

$current GDP * (1+Growth Rate)^{n} = 2 * current GDP$

In the solutions below, we assumed current GDP to be 1, and as a result, the GDP will double to 2.

Scenario A

$1 * (1+0.35)^{n} =2$

When you substitute 20 for "n" in the left hand side (LHS) of the equation, you will arrive at 1.99 which is approximately equal to 2. Any number below 20 will result in a number less than 2.

Thus, with an average annual real GDP growth rate of 3.5%, real GDP will double in about 20 years.

Scenario B

$1 * (1+0.45)^{n} =2$

When you substitute 16 for "n" in the left hand side (LHS) of the equation, you will arrive at 2.02 which is approximately equal to 2. Any number below 16 will result in a number less than 2.

Thus, with an average annual real GDP growth rate of 4.5%, real GDP will double in about 16 years.

6 0

3 years ago

Mr. smith wishes to retire in 11 years. when he retires he would like to have $500,000 in his bank account. mr. smith's bank pay

Simora [160]

The formula is
A=p (1+r)^t
A future value 500000
P present value. ?
R interest rate 0.06
T time 11 years
Solve the formula for p by dividing both sides by (1+r)^t to get
P=A/(1+r)^t
P=500,000÷(1+0.06)^(11)
P=263,393.76

he should deposit 263393.76 now to attain 500000

Hope it helps!

4 0

3 years ago

When adding fields to a form, press Ctrl+F8 to show or hide the Field List.

siniylev [52]

Answer:

False

Explanation:

To show or hide the field list, when adding fields to a form, press 'ALT+F8'.

6 0

3 years ago