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noname [10]
3 years ago
7

7. The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a TV now, and wait a yea

r to pay (with no interest). So, if you take home a $1000 TV today, you will owe them $1000 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today?
Business
1 answer:
ElenaW [278]3 years ago
7 0

Answer:

$961.54

Explanation:

we need to find out the present value of $1,000 in one year:

present value = future value / (1 + interest rate)ⁿ

  • future value = $1,000
  • interest rate = 4%
  • n = 1

present value = $1,000 / (1 + 4%) = $1,000 / 1.04 = $961.54

this is an example of the financial principle of time value of money, i.e. one dollar today is worth more than one dollar tomorrow

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Sladkaya [172]

Answer:

they are able to set their own hours and policies.

Establish prices.

Mall Critical decisions on how to operate the company.

Some people don't want to work for a boss. Others have an innovative mind or brilliant idea

People also engage in business to make a difference in the world.

7 0
2 years ago
When there is more choice for proceducers and consumers, that is a Command Economy.
yaroslaw [1]
Correct Answer: False
7 0
3 years ago
On July 1, Shady Creek Resort borrowed $310,000 cash by signing a 10-year, 11% installment note requiring equal payments each Ju
mafiozo [28]

Answer:

$34,100

Explanation:

The interest on the installment note for the first year is a function of both the face value of the note and interest rate of 11%

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The Principal portion of the first payment=$52,639-$34,100=$18,539

8 0
3 years ago
foreign project in Hungary and another in Japan had the same perceived value from the U.S. parent's perspective. Then, the excha
worty [1.4K]

Answer:

The correct answer is higher than that for the Hungarian project.

Explanation:

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3 years ago
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3 years ago
Read 2 more answers
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