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alexandr402 [8]

3 years ago

10

Dalia makes a little more money than she spends on her daily expenses and wants to put the extra away in a separate account in c

ase she needs it for an emergency. Which type of account would be the best option for Dalia?

1 answer:

aivan3 [116]3 years ago

7 0

The answer would be a savings account

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A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest

My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

Market rate of interest 5%

New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

$B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

wherein, C = Coupon rate of interest

YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

n= Years to maturity

RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0

3 years ago

Within each of the three larger categories, best practices are categorized by ____ stages of process improvement.

ELEN [110]

Within each of the three larger categories, best practices are categorized by four stages of process improvement.

<h3>What is Process Improvement?</h3>

Process Improvement serves as the proactive task of identifying as well as analyzing existing business processes within an organization.

The four stages of process improvement are;

Identify the need for change
identify the need for change.
Analyzing current process
Seek commitment and support.
Look for improvement strategy

learn more about Process Improvement at;

brainly.com/question/11837585

3 0

2 years ago

Michelle Duncan wants to know her affordable home purchase price. Her annual gross income is $49,800. She has $820 per month of

Alex Ar [27]

Answer:

d) $84,439

Explanation:

We can use the rule of 28/36 to calculate Michelle's affordable home purchase. She should only spend up to 28% of her monthly income on housing expenses and up to 36% of her monthly income paying for debt service.

monthly salary = $49,800 / 12 = $4,150

her total monthly amount to pay for debt service = $4,150 x 36% = $1,494

she is already paying $820 per month for other debts, so her monthly payment should be less than: $1,494 - $820 = $674

her total monthly amount to pay for housing expense = $4,150 x 28% = $1,162

she is planning on paying $270 in related house expenses, so her monthly payment should be less than: $1,162 - $270 = $892

out of the five options, Michelle cannot afford to buy the $253,316 house, but she can afford to buy the $84,439 house.

[($21,110 x 0.75) / $1,000] x 7.69 = $121.75 monthly payment

[($253,316 x 0.75) / $1,000] x 7.69 = $1,461 monthly payment

[($63,329 x 0.75) / $1,000] x 7.69 = $365.25 monthly payment

<u>[($84,439 x 0.75) / $1,000] x 7.69 = $487 monthly payment</u>

[($48,710 x 0.75) / $1,000] x 7.69 = $280.93 monthly payment

4 0

3 years ago

Which of the following is NOT true regarding the production possibilities frontier (PPF)? The PPF illustrates the trade-offs tha

ddd [48]

Answer:

The correct answer is: The PPF shows us that gains from trade are maximized when countries produce goods for which they have an absolute advantage in production.

Explanation:

A production possibilities frontier is a curve that shows different combinations or bundles of two goods that can be produced using all the resources and technology available.

It represents the concept of scarcity of resources and opportunity costs. Because of the scarcity of resources we cannot increase the production of both goods. To increase the production of one good we need to sacrifice the production of others. So, there is some opportunity cost involved in producing each additional unit of output.

7 0

3 years ago

Which of the following statements is true? Total revenue will equal zero when the demand for a product is unit elastic. When a f

Gre4nikov [31]

Answer:

Total revenue will equal zero when the demand for a product is unit elastic. FALSE

When a firm lowers its price its total revenue may either increase or decrease. TRUE

Whenever a firm raises its price its total revenue will increase. FALSE

Whenever a firm increases its quantity sold its revenue will increase. FALSE

Explanation:

Price elasticity en the demand measures the porcentage of change in the quantity demandend when a price is changed.

When the porcentage of change in the quantity demanded is the same of the porcentage of change in the price we talk of unit elastic. The revenues will keep being the same no matter the change in the price.

When a firm lower the price of a good it can increase the revenues if the product has an elastic demand, it means that the porcentage of change in the quantity demanded is bigger than the porcentage in the change of the price, and if the product has an inelastic demand, the revenues will decrease. Price demand is inelastic when the porcentage of change in the quantity demanded is smaller than the porcentage in the change of the price.

7 0

3 years ago