Answer:
PMT = $7,773
Explanation:
n = 25 years = 50 payments (since the annuity due with semi-annual payments)
i/r = 6% annually = 3% semi-annually
PV = 200,000 (given)
FV = 0 ( No future value at end of 25th year is given)
PMT = ? (THis is the missing value we need to calculate - the amount of annuity payment)
Using financial calculator, we have:
PMT = $7,773
Answer: c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange.
Explanation:
Bonds are a type of loanable funds which are issued to gain access to cash for certain activities. Both countries and companies do this. When the U.S. government issues bonds, they do so taking into account the amount of funds they would need to fund what it is they want to funds.
They also do so taking into account, the amount of dollars needed by in the foreign-currency exchange market so that they can pump enough dollars into the world economy.
Answer:
With a <u>CASHIER'S CHECK</u>, the bank serves both as the drawer and the drawee. The most common type of negotiable instrument is a(n) <u>PROMISSORY NOTE</u>.
Explanation:
A cashier's check is a negotiable instrument because it is in writing, it is an unconditional order to pay, it is signed by the bank (the drawer), it orders the bank (the drawee) to pay a certain specified amount of money to the bearer of the check.
A promissory note is a signed document that promises an unconditional payment to a specific individual or legal entity (business). A promissory note can include a specific date for the payment or the payment can be made on demand.
Answer:
a. A large potential market exists, even at a high price.
Explanation:
Penetration pricing is often used to support the launch of a new product, and works best when a product <u>enters a market </u>with relatively little product differentiation and where demand is price elastic –<u> so a lower price than rival products is a competitive weapon.</u>
Therefore the conditions that would argue for using a penetration pricing strategy when introducing this new camera, is when a large <u>potential market exists, even at a high price</u>.<u>so that using a lower price will attract customers to the new product and part of the potential market will be gained.</u>