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My name is Ann [436]
3 years ago
11

Suppose you've just inherited $66,000 from your rich Aunt. You're trying to decide whether to keep the $66,000 in cash so that y

ou can use it for transactions or to deposit the entire amount in a savings account for one year. Suppose that the interest rate on a savings account is 2.5% per year. What would be the opportunity cost of holding the $66,000 as money
Business
1 answer:
Flauer [41]3 years ago
3 0

Answer:

Opportunity cost of holding the money = $1.650

Explanation:

Opportunity cost is the value of the next best alternative sacrificed in favour of a decision.

The opportunity cost of holding the money is the interest on deposit that would be have been earned should it be invested at the savings rate.

Interest on savings deposit = interest rate × deposit

                                         = 2.5%× 66,000= $1,650

Opportunity cost of holding the money = $1.650

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2. Which of these would an item's producer be most likely to do if total revenue on that item began to
stealth61 [152]

Answer:

c. lower the price of that item

Explanation:

If the revenues from a product begin to fall, most probably the product is entering the decline stage of its product cycle.  In the initial stages of the decline stage, sales begin to drop.

When sales begin to drop, producers implement strategies to try and keep the product in the market for a longer time. One of the ways of maintaining sales is to offer reduced prices. A producer cuts prices to woe customers to continue buying the product.

8 0
3 years ago
Which is the oldest form of money still in existence today?
ioda
The oldest form of money that still exist today is: Metallic money.
In the past, money is used in the form of Gold and silver coins. (Gold tend to be higher in value compared to silver)
Even though the amount of metallic money that we use today is far lesser compared to the past, we still use pennies for making small purchase
5 0
3 years ago
Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount e
Vladimir [108]

Answer:

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560

Explanation:

In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:

Accrued Benefits=  Health Insurance Cost+  (Gross Salary × Percentage Contributable)

Accrued Benefits=$15,400+($154,000×4%)

Accrued Benefits=$15,400+$6,160

Accrued Benefits=$21,560

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560

6 0
3 years ago
What is an example of a critical tool most small businesses would use for marketing?
Tcecarenko [31]

Answer:

a company website

Explanation:

this is so they can post it everywhere and people use this a lot for small businesses and big companies.

7 0
3 years ago
Mirrlees Corp. has 11,000,000 bonds convertible into 39 shares per $1,000 bond. Mirrlees has 570,000 outstanding shares. Mirrlee
Oksi-84 [34.3K]

Answer: 1.37

Explanation:

The basic earnings per share" if after-tax earnings are $780,000 would be calculated as the after tax earning divided by the outstanding shares. This will be:

= $780000 / $570000

= 1.3684211

= 1.37

8 0
3 years ago
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