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3 years ago

In one or two sentences, describe why it is important to spend wisely.

2 answers:

7 0

It is important to spend wisely because using too much money in one area could lead to a loss in another. For example, if you were to spend too much money or clothes in a month, you may not have enough money to buy groceries.

Llana [10]3 years ago

3 0

Create a budget, save your receipts or write down your purchases in a notebook. Shop alone, you tend to buy more things when you are with friends.

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Automobile Computers

kaheart [24]

Answer:

Actor: Firm, individual, nation, or other participant in the economy. Opportunity Cost: The benefit that would have been received by taking the next best.

Explanation:

8 0

2 years ago

"Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 millio

Bingel [31]

Answer: $500,000

Explanation:

An Interest Rate Cap is a Derivative Financial Instrument that works by paying the buyer for every year that the interest rate ceiling is exceeded.

Using the scenario above this is how it's works,

There is an Interest Rate Ceiling of 11%.

Any year that index which is this case is the London Interbank Official Rate (LIBOR) exceeds the 11%, the seller will pay the buyer the difference between the LIBOR and the Interest Rate Ceiling.

The Notional Principal is the amount on which the interest is based.

That means that in Year 1 with a LIBOR of 9 percent, the seller does not pay.

Second year LIBOR is 12 percent, the seller will pay 1% (12% - 11%)

Third year LIBOR is 13 percent, the seller will pay 2% (13% - 11%)

Lizard National Bank had to pay 2% of the notional Principal as a fee.

The amount that Lizard Receives from the seller is therefore,

= Total Received - Fees

= (1% + 2% - 2%) * 50,000,000

= 1% * 50,000,000

= $500,000

The total payments received by Lizard, including the initial fee, are $500,000.

4 0

4 years ago

Principles of Investment

Scrat [10]

Answer:

demand for investments

Explanation:

7 0

2 years ago

Margaret, a 35-year-old client who earns $70,000 a year, pays 7.65% of her gross pay in Social Security payroll taxes, spends14%

madreJ [45]

Answer:

84.35%

Explanation:

The computation of Margaret’s wage replacement ratio using the top-down approach is shown below:

= 100 - Social Security payroll tax rate - saving rate

= 100 - 7.65% - 8%

= 84.35%

For determining Margaret’s wage replacement ratio, we subtract the Social Security payroll tax rate and the saving rate from the percentage value i.e 100 so that the accurate ratio can come.

5 0

3 years ago

Pfister corporation reports $582 million in net income. This is the amount of cash available to distribute to shareholders.a. Tr

TEA [102]

Answer: False

Explanation:

The Net Income also takes into account cash that has not been paid yet from credit sales as well as other non-cash expenses. It is therefore not a measure of how much cash is available to be distributed to shareholders.

The amount that represents the cash available to distribute to shareholders is called the Free Cash Flow to the Firm (FCFF) and accounts for the actual amount of cash available in the company for disbursement.

8 0

3 years ago