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Artemon [7]
3 years ago
9

Suppose Carla has $7000 to invest. Which investment yields the greater return over 4 years: 7% compounded quarterly or 6.85% com

pounded monthly
Business
1 answer:
o-na [289]3 years ago
6 0

Answer:

The option with the quarterly compounding provides a higher future value.

Explanation:

Giving the following information:

Initial investment= $7,000

Number of years= 4 years

<u>To calculate the future value, we need to use the following formula:</u>

FV= PV*(1+i)^n

<u>Quarterly compounding:</u>

Interest rate (i)= 0.07/4= 0.0175

n= 4*4= 16

FV= 7,000*(1.0175^16)

FV= $9,239.51

<u>Monthly compounding:</u>

i= 0.0685/12= 0.00571

n= 4*12= 48

FV= 7,000*(1.00571^48)

FV= $9,200.07

The option with the quarterly compounding provides a higher future value.

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A business may decide to accept additional business at a special price for all of the following reasons except Group of answer c
Studentka2010 [4]

Answer:

if there is an increase to sales even if fixed expenses are also increased.

Explanation:

In simple words, fixed cost refers to the expenditures, that unlike variable expenses, remain stable at a high level. Factory or office rent , labor charges are some of the prime examples of fixed expenses.

Due to fixed expenses, entities operating at higher level makes higher profit. Hence, if the fixed expenses also increase with sales then the project might not be very profitable to accept.

4 0
3 years ago
Which of the following describes the financing activities section of the statement of cash flows?A) It reports on activities tha
olga_2 [115]

Answer:

C) It includes cash inflows and outflows related to long-term liabilities and equity.

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.  

In the above option, option C is a match with the meaning of the financing activities.  

Hence, all other options are incorrect.

5 0
3 years ago
Tell me in your own words what differentiation and commoditization are. Please provide examples of each. Why do managers care ab
Furkat [3]

Answer:

Commoditization of a market means that the goods or services offered will be homogeneous. This means that they will be practically identical and customers will be indifferent when choosing one product or any other product because they are identical or very similar. E.g. think about gold, which is one of the most important commodities in the world. A consumer doesn't care if they are buying gold from Alaska, Canada, Brazil, etc., they are simply buying gold.

On the other hand, differentiation means that the products or services offered are heterogeneous or different. When products are differentiated, customers will buy them because they like them more than the competition. E.g. you buy Coke because you like it more than Pepsi or any other brand.

Some products will naturally tend to be commodities, e.g. agricultural products, but others go through a commoditization process that is not natural. E.g. banks offering homogeneous checking or savings account. The problem with commoditization happens when one company simply decides to offer something different. Before Amazon, internet retail was basically non-existent. But when Amazon came by, they decimated or virtually eliminated the major brick and mortar players. During many years Sears was the number 1 retailer in the world, then came Walmart. But after Amazon came, even Walmart's long term survival is doubtful and Sears, JC Penny, Toys R Us, Radio Shack, and many others are either extinct or about to become extinct. The new norm is online retailing now.

8 0
3 years ago
Construct a list of five common materials such that if a material "lower" on the list is rubbed against a material "higher" on t
kogti [31]

Answer:

Explanation:

   glass , wool , hair , silk , ebonite , rubber  

On this series , material lower on the list acquires negative charge when rubbed with material on the upper end of the list.

6 0
3 years ago
a system of accounting for production operations that produces timely information about inventories and manufactyring cost per u
rjkz [21]

Answer:

cost accounting system

Explanation:

The system that is being described is known as a cost accounting system. This system is mainly used by firms in order to estimate the cost of their various products in order to use the information to analyze their profitability as well as their inventory valuation and cost control, all of which are vital to the company's profitable operations when dealing with accounting.

3 0
3 years ago
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