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3 years ago

TRUE or FALSE: If a product is priced higher or lower than its perceived value (by

Business

1 answer:

bezimeni [28]3 years ago

8 0

Answer:

The answer is: False

Explanation:

a product can sell if the price is higher or lower than its perceived value, take a market crash for example, many stocks are priced lower than its perceived value but some investors still buy it, or overpriced stocks, people that believe the stock will continue to go up would most likely buy it.

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Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $1

Luba_88 [7]

Answer:

the formula for compound interest future value is S=P*((1+i)exp n)-1/i)expt

Explanation:

The answer is $6,186

130000=X*((1+0.06)exp 14)-1/0.06)

X= 6,186

3 0

4 years ago

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $28,000, $32,000, $66,000,

larisa86 [58]

Answer:

$202,137.90

Explanation:

Year Annual payment Discount factor Present value

1 $28,000 0.965250965 $27,027.03

2 $32,000 0.931709426 $29,814.70

3 $66,000 0.899333423 $59,356.01

4 $99,000 0.868082454 $85,940.16

Total present value $202,137.90

The discount factor should be computed by

= 1 ÷ (1 + interest rate)^years

where,

rate is 3.6%

Year = 0,1,2,3,4 and so on

6 0

3 years ago

Which of the following refers to the principal-agent problem in the market for health care?

larisa86 [58]

Answer:

a. Doctors pursuing their own interests rather than the interests of their patients

Explanation:

A principal is an individual or a group that entrusts a certain responsibilities to someone else (known as the agent) in an entity . The agent therefore has superior information than the principal and therefore the former makes decisions on behalf of the latter. A conflict of interest can occur when the agent pursues his own interests for personal gains and ignores the responsibility he was hired to do hence creating Principal-Agent problem. Among these choices, doctors pursuing their own interests rather than the interests of their patients will lead to principal agent problem.

7 0

3 years ago

What is the prime reason that Jenny's discretionary income is more volatile than her salary?

sweet [91]

Answer:

c. Her mortgage payments and necessities are fixed

Explanation:

Discretionary income is the remaining income after being paid out for all fixed expenses (i.e. Discretionary income = Salary - Mortgage - Income tax etc). The primary reason for variability in it is due to the mortgage payment and fixed expenses from the basic salary received.

So, option c is correct while other options are incorrect as tax does not affect as well as cost of living

7 0

3 years ago

On May 1, 2020, Course Co. borrowed $16,000 and signed a three-year note bearing interest at 6% per annum. Interest is payable q

butalik [34]

The amount that Course Co. should report as a liability for accrued interest on its December 31, 2021 balance sheet is $240.

<h3>What is accrued interest?</h3>

Accrued interest is an accounting expression that shows a liability for interest payment has been incurred for a loan but the payment has not yet been made.

For Course Co., it incurs accrued interest of $240 every quarter for the three-year note payable. Usually, the accrued interest is paid at the beginning of the next quarter.

<h3>Data and Calculations:</h3>

3-year note payable = $16,000

Rate of interest = 6% per year

Date of loan = May 1, 2020

Interest payment = quarterly or 4 times annually

Interest per quarter = $240 ($16,000 x 6% x 1/4).

Thus, the accrued interest on Course Co.'s December 31, 2021 balance sheet is $240.

Learn more about accrued interest at brainly.com/question/1542335

5 0

2 years ago