Mark and Riley live in Orlando and decide to open a souvenir shop. They incorporate their shop, Sunshine Gifts, Inc., in the state of Florida. In Florida, Sunshine Gifts would best be characterized as A domestic corporation.
<h3><u>What are domestic corporations ?</u></h3>
- A domestic corporation is a business that operates within its own nation.
- A domestic business may have to pay tariffs or other fees on the goods it imports and is frequently subject to different taxation than a non-domestic firm.
- In most cases, a domestic corporation that has filed its articles of incorporation can readily conduct business in other states or regions of the nation.
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Answer: stability
Explanation: In simple words ,The probability that the origin of the attribution would change over a duration of time is called attribution. For instance, if a person decides to get such a big promotion, they might equate it to a lack of skill.
This suggests uncertainty, as the person must improve their skills and obtain an education in order to ultimately influence the outcome. It is not a sustainable situation, but one that can be modified by behavioral change.
Thus, from the above we can conclude that the correct option is D.
Answer and Explanation:
Given that Bond A pays $4,000 in 14 years and Bond B pays $4,000 in 28 years, and that the interest rate is 5 percent, we see that Using the rule of 70, the value of Bond A is 70/5 = doubled after 14 years. Now if its value is 4000 in 14 years, its current value must be halved. Hence the value is 2000.
Sinilarly the value of Bond B is approximately one fourth now because it pays 4000 in 28 years. Hence its value is 4000/4 = 1000.
Now suppose the interest rate increases to 10 percent. Hence the doubling time is 70/10 = 7 years
Using the rule of 70, the value of Bond A is now approximately 1,000 and the value of Bond B is 250
Comparing each bond’s value at 5 percent versus 10 percent, Bond A’s value decreases by a smaller percentage than Bond B’s value.
The value of a bond falls when the interest rate increases, and bonds with a longer time to maturity are more sensitive to changes in the interest rate.
The original investment that Rob made was $4,981 with the rate of interest of 11% per year for 18 years.
<h3 /><h3>What do you mean by present value?</h3>
Present value (PV) refers to the current price of a future amount of money or move of cash flows given a certain price of return. Future cash flows are discounted at the discount price, and the better the discount price, the lower the present price of the future cash flows.
As per the given information:
A: $32,595
P: ?
r: 11%
n = 18 years
Therefore, The original investment that Rob made was $4,981 with a rate of interest of 11% per year for 18 years.
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