Interdependence among individuals and interdependence among nations are both based on the gains from trade. True or false?.
Interdependence among individuals and interdependence among nations are both based on the gains from trade. True.
We regularly use interdependence to describe complex systems. Marriage creates a nation of interdependence among spouses. In case your canine gives you love and happiness, and also you offer your dog food and walks (and love and happiness), then your relationship together with your dog is one of interdependence.
Interdependence involves a balance of self and others within the dating, recognizing that each partner is working to be present and meet every other's bodily and emotional needs in appropriate and significant approaches.
Interdependence presents a guide to individuals permitting them the electricity to aid others and to focus on their personal private boom. Think about a world wherein anybody reached a country of interdependence.
Learn more about interdependence here https://brainly.com/question/18251781
#SPJ4
If p denotes the equilibrium price, then the consumer surplus at any price higher than p must be less than or equal to the consumer surplus at price p.
true/ false
The given statement "If p denotes the equilibrium price, then the consumer surplus......... less than or equal to the consumer surplus at price p." can be marked as true.
What is consumer surplus?A consumer surplus refers to the economic situation that arise when the price for a product or service that has been actually paid by the consumers is less than the price they are willing to pay.
Consumer surplus measures the welfare of the consumer and can be defined as the excess of social valuation of product over the price actually paid.
Basically, Consumer surplus is a measurement of consumer benefits that generally results from the market competition.
Learn more about consumer surplus here:-
https://brainly.com/question/15416023
#SPJ4
Profit maximization fails to provide an appropriate goal for financial managers because.
Profit maximization fails to provide an appropriate goal for financial managers because it lacks a time dimension it ignores risk.
Profit maximization is the primary intention of any business, and consequently it's also an goal of monetary management. In monetary control, it represents the procedure or the technique by which income incomes consistent with percentage (EPS) is improved.
It enables in attaining the gadgets to maximize the business operation for earnings maximization. The ultimate goal of any commercial enterprise is to earn a large quantity of go back in terms of earnings. for this reason, this goal of financial control considers all the viable approaches to boom the profitability of the enterprise situation.
The wealth maximization approach aims at maximizing the wealth of the shareholders by growing EPS. Means that the wealth maximization technique is considered better than earnings maximization because wealth maximization technique makes a speciality of the lengthy-term boom and development of an corporation.
Learn more about Profit maximization here: https://brainly.com/question/13464288
#SPJ4
The aggregate demand curve indicates a(n) _____________ relationship between the price level and the quantity demanded of real gdp;
The aggregate demand curve indicates a(n) direct, indirect, horizontal relationship between the price level and the quantity demanded of real GDP;
An aggregate demand curve suggests the whole spending on home items and offerings at every charge degree. You can see an instance mixture call for the curve below. Just like in a mixture deliver curve, the horizontal axis suggests actual GDP and the vertical axis suggests charge degree.
The aggregate demand curve represents the whole of consumption, investment, authorities purchases, and internet exports at every charge degree in any period. It slopes downward due to the wealth impact on consumption, the hobby price impact on investment, and the worldwide alternate impact on internet exports.
Learn more about the aggregate demand curve here: https://brainly.com/question/25749867
#SPJ4
What is walmart's revenue in 2018 (in millions)? (enter the answer in dollar format without $ sign or thousands comma -> 3519.23 and not $3,519.23 or 3,519.23)
Walmart's revenue in 2018 (in millions) is $500,343.
Walmart. An American multinational retail corporation known as Wal-Mart Stores, Inc., better known by its brand name Walmart, operates chains of sizable discount department stores and warehouse stores. Sam Walton established the business in 1962; it was incorporated on October 31, 1969, and has its main office in Bentonville, Arkansas.
Walton made the decision to launch "Wal-Mart Stores, Inc." after the Arkansas store's success. Although the name's origins are unknown, Walmart, was probably an acronym for Walton's Market, which conducts both retail and wholesale business. The business provides a range of goods and services at regular low prices.
Learn more about Walmart here
https://brainly.com/question/27744358
#SPJ4
The ________ phase of the portfolio selection process involves steps such as prescreening, individual project analysis, and portfolio adjustment.
The PRE-PROCESS phase of the portfolio selection process involves steps such as prescreening, individual project analysis, and portfolio adjustment.
To recap from the introduction to portfolio management, managers will use the portfolio selection process, also known as the asset allocation process, to select portfolios that will produce the highest expected return at their target level of risk or standard deviation of return.
At this point in the learning process, let’s consider three key steps involved in the portfolio selection process: among other things, he or she also will provide screening, individual project analysis, and portfolio adjustment.
Pre-process phase of Portfolio: To pre-process your portfolio, there are three steps to take.
First, prescreen portfolios that meet the evaluation criteria.
Second, analyze the individual project phase.
Finally, adjust portfolios by making changes to move projects from one portfolio phase to another if they don't meet that phase's criteria.
Adjusting a portfolio involves removing a project from one phase and adding it to another, or deleting it altogether.
The simplest way to do this is by clicking on the small red icon that appears on each project icon when you hover over it with your mouse pointer.
Importance of Portfolio's: One of the most important considerations for a design school student is what type of portfolio to prepare for admission.
In order to be competitive, it's crucial that you build your portfolio based on the school you're applying to.
They may have specific requirements as far as how many pieces of work are required or how big they should be in physical size.
If you can't meet these requirements then it may not make sense to spend time and money preparing a portfolio.
To learn more about Portfolio's refer to:
https://brainly.com/question/13924933
#SPJ4
An offer is the expression of a willingness to enter into a contract by the offeror’s promising an offeree that she will perform certain obligations _______ some legal benefit from the offeree.
When nordstrom’s says, "leave it better than we found it. We work hard to be a company that our employees and our customers can be proud of. For us, that means doing our best to support the many people and communities we serve. It also means respecting the environment by reducing our impact and conserving resources where we can. We strive to make people feel good and show that nordstrom is a company that cares. " they are sharing their mission.
The given statement is False.
Earth's natural resources include air, water, soil, minerals, plants, and animals. Conservation is the practice of taking care of these resources so that all living things can benefit from them now and in the future. Earth's natural resources include air, water, soil, minerals, fuels, plants, and animals. Conservation is the practice of taking care of these resources so that all living things can benefit from them now and in the future.
All the things we need to survive, such as food, water, air, and shelter, come from natural resources. Some of these resources, like small trees, can be replaced quickly after they are used. Other trees, like large trees, take a long time to replace. They are renewable resources.
Other resources, such as fossil fuels, are completely irreplaceable. Once exhausted, they are gone forever. These are non-renewable resources.
Learn more about the Conservation of Resources here: https://brainly.com/question/24514288
#SPJ4
Top managers use _______ planning to determine what the organization's long-term goals should be for the next one to five years with the resources they expect to have available.
'Top managers use strategic planning to determine the organization's long-term goals should be for the next one to five years with the resources they expect to have available.
A strategy is a general plan for achieving one or more long-term or general goals under uncertain circumstances. Her five stages of the process are goal or objective setting, analysis, strategy development, strategy implementation, and strategy monitoring. A strategic management process is more than a set of rules. A philosophical approach to business.
Strategic goals are long-term, overarching goals for an organization, not short-term tactics to address current problems and challenges. Strategy helps organizations improve how they work and set new goals instead of simply improving or correcting what the organization is already doing.
Learn more about Strategic https://brainly.in/question/8803003
#SPJ4
The balance of trade is the difference between the monetary cost of the ______________ that a nation exports and the monetary cost of what it imports.
The balance of trade is the difference between the monetary cost of the goods and the services that a nation exports and the monetary cost of what it imports.
The number of liquid funds that a product or service fees a consumer to buy. The monetary price of a terrific would possibly encompass the coins had to buy it, the time and charges worried in searching for it, and the hazard taken in spending money to acquire the expected enjoy the desirable's capabilities.
Possibility value is a notional cost as it's miles in the nature of loss of potential profit and now not actual coins value incurred. Cash fee is a real price this is incurred and calls for real agreement through price thru cash, take a look at or draft, etc.
Money cost refers back to the sum of monetary costs incurred by the manufacturer for generating a commodity. Actual price refers to the trials the pain and disutility concerned in providing the elements of production by their owners.
Learn more about monetary costs here: https://brainly.com/question/3194485
#SPJ4
How+much+would+$5,000+due+in+25+years+be+worth+today+if+the+discount+rate+were+5.5%?
a. $1,067.95
b. $1,124.16
c. $1,183.33
d. $1,245.61
e. $1,311.17
e.$1,311.17 would $5,000 due in 25 years be worth today if the discount rate were 5.5%.
Discounts are reductions of the normal charge of a services or products with a purpose to gain or boom sales. these reductions—also generally known as "sales" or markdowns—are utilized in a wide range of industries by using each retailers and producers.
A discount is the discount of both the economic amount or a percent of the regular promoting charge of a products or services. as an instance, a reduction of $10 can be supplied from the listing charge of a product, or as a ten% discount from the listing rate.
Discount in price makes a psychological impact on the purchaser which results in the acquisition. the 2 kinds of cut price presented are exchange discount and cash discount.
Learn more about discount here:https://brainly.com/question/1548141
#SPJ4
The chester company will increase its automation for the cone product by 2.0. assuming no further change in capacity, how much will this investment in automation cost?
Investment in automation cost = $8,800,000.
How is automation cost calculated?Current annual workflow expenses are calculated as follows: time (the amount of time each process step takes), cost (the employee cost per hour), frequency (the number of times the workflow is done each month), frequency x 12 (months), plus total software and implementation costs.Compared to the manual approach, annual production costs are much cheaper due to lower labor expenditures. Production using the automated system cost $540,000 over a two-year period, while the manual system would have cost $900,000. That amounts to a $360,000 return, or a 90% ROI.The economics of automating warehouse operations are becoming more and more obvious. For example, although the minimum wage in the US is $15 per hour, renting a robot (as opposed to buying one for about $100,000) costs only $8 per hour.The Chester company will increase its automation for the cone product by 2.0. assuming no further change in capacity, how much will this investment in automation cost?
Following are the information of Cent:
Current automation = 7%
Capacity of next round = 1,100
New automation = 7 + 2 = 9
Investment in automation cost = Capacity * (4 * (New automation - previous automation)) * 1000
= 1,100 * (4 * (9 - 7)) * 1,000
= 1,100 * (4 * 2) * 1000
= 1,100 * 8 * 1,000
= $8,800,000.
Investment in automation cost = $8,800,000.
To learn more about automation costs, refer to:
https://brainly.com/question/27407318
#SPJ4
The case explains that starbucks has far more retail outlets than does dunkin’ donuts, and it is sometimes said that in many cities you can find a starbucks on almost every corner. What type of macro strategy for starbucks does this difference between the two companies represent?.
The type of macro strategy for Starbucks represented by the difference between these two companies is locational excellence.
Macroeconomics studies the economy as a whole. This economics study specifically learns about the economy on a large scale and comprehensively. Macroeconomics is often used as an instrument to analyze and design a series of policy targets related to inflation, employment, economic growth, and a sustainable balance of payments balance.
This economic study can also be used to analyze producers as a whole. Consumers are also not left behind; Macroeconomics analyzes them in the context of how to allocate income to buy goods and use services.
There are several types of macroeconomic objectives, and they affect the economy of a country. Each of these goals is aimed at solving problems that arise in a country.
You can learn more about Macroeconomics here brainly.com/question/28489802
#SPJ4
What should a writer do after writing an initial draft of a business message?
Writers finalize their thoughts, such as sentences and paragraphs, throughout the drafting process. The writer makes sure the reader can understand his message by how he arranges his ideas.
What does the initial draft mean?The initial Draft refers to the first version of a legal document that has been written in a concise and understandable manner and is prepared for review by the appropriate authority while taking into consideration the actual and immediate requirements of the topic.
Lay it to rest. The hardest thing might be this. The entire thing should be read once. Revise. Reread it out loud this time. Make any necessary corrections. Construct a synopsis. Publish a cover letter. Determine who you should address the query letter to and then submit it.
Learn more about The Initial Draft here:
https://brainly.com/question/13867933
#SPJ1
Suppose a factory recently removed robots from its production line, decreasing productivity. this will likely cause a:__________
If a factory recently reduced productivity by removing robots from its production line, what would happen? The supply curve will probably move left as a result of this.
The supply curve is a graphical representation of the relationship between an item's or service's pricing and the volume delivered over a given time period. The price will typically be shown on the left vertical axis of an example, and the quantity given will be shown on the horizontal axis.
The supply curve, which embodies the law of supply, will incline higher from left to right: The amount supplied rises as the cost of a certain good rises (all else being equal).
A supply curve's overall slope may change due to changes in manufacturing costs and related variables. The quantity offered at a particular price can be higher or lower as a result. Supply curves connect prices and quantities provided under the ceteris paribus premise, which holds that no other variables vary.
To know more about supply curve
https://brainly.com/question/11717727
#SPJ4
Compute the future value of $2,500 continuously compounded for (do not round intermediate calculations. round the final answers to 2 decimal places. omit $ sign in your response.)
If we value some thing or a person, we assume that they're essential and also you admire them. I value the opinion of my husband and we agree on maximum matters. 3. variable noun. The fee of something is how tons cash it's miles really worth.
Values help us live with route and reason – like a guiding compass. something goes on in our lives, our values can show us a path forward, and assist us make higher alternatives. Values are also in detail linked to our feel of self, and they may be crucial for our intellectual health.
Nau ew N=es B S D
a)|destiny price) $five,136.08 |=2500*exp(6*12%)
b)|future fee] $3,881.seventy seven |=2500*ExP(four*eleven%)
c) |future fee| $four,555.30 |=2500*Exp(12*five%)
d)|future cost| $5,034.38 |-2500*Exp(10*7%)
Learn more about value here
https://brainly.com/question/12151322
#SPJ4
Many international marketing companies address the internet language problem by:________
Many international marketing companies address the internet language problem by having country-specific Web sites.
What is marketing?Marketing refers to all activities a company does to promote and sell products or services to consumers.Marketing makes use of the "marketing mix," also known as the four Ps—product, price, place, and promotion.Marketing used to be centered around traditional marketing techniques including television, radio, mail, and word-of-mouth strategies.Though traditional marketing is still prevalent, digital marketing now allows companies to engage in e-mail, social media, affiliate, and content marketing strategies.At its core, marketing seeks to take a product or service, identify its ideal customers, and draw the customers' attention to the product or service available.To learn more about marketing, refer: https://brainly.com/question/13414268?referrer=searchResults
#SPJ4
You+deposit+$2,800+in+your+bank+account.+a.+if+the+bank+pays+4%+simple+interest,+how+much+will+you+accumulate+in+your+account+after+10+years?
Future Value:$4,144.68
Principal:$2,800.00
Interest:$1,344.68
Three components are required to calculate future values with compound interest: the present value or principal amount, an interest rate, and the number of investment periods. The formula takes your current investment amount and adds it to the interest that will eventually compound. The following is the formula:
FV = PV(1+i)n
Future Value (FV)
Present Value Equals PV
Number of compounding periods is indicated by the decimal form of the period interest rate, i.
To learn more about FV from the given link.
https://brainly.com/question/12979998
#SPJ4
Gwhat should you do if you start having a hard time paying your mortgage?
Call your mortgage servicer as soon as possible if you are having trouble making your mortgage payments or are concerned about missing one.
Your service provider might provide options like these.
Refinance.
Consider modifying your loan.
Make a repayment strategy.
Obtain patience.
Short sell your house.
New regulations demand that your mortgage servicer get in touch with you as away once you become delinquent and inform you of any choices you may have to prevent foreclosure so that you can give your property back to your lender through a "deed-in-lieu of foreclosure." You must submit a mortgage assistance application, often known as a "loss mitigation" application, in order to receive this assistance. It's critical that you give your servicer all the details they want; otherwise, they won't be able to.
to know more about mortgage
https://brainly.com/question/1318711
#SPJ4
Where in the cafr would one find the long-term liability for revenue bonds (paid from the revenues of an enterprise fund)?
Statement of Net Position, the Statement of Revenue, Expenses, and Changes in Fund Net Position, and the Statement of Cash Flows.
Revenue is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales. A company's revenue is the money generated by its operations. Depending on the chosen accounting approach, there are several ways to compute revenue. Sales made using a credit card will be counted as revenue for products or services that were delivered to the customer. In accordance with some regulations, revenue is recorded even if payment has not yet been made.
learn more about revenue:
https://brainly.com/question/8645356
#SPJ4
Celeste+hopes+to+qualify+for+an+fha+loan.+she+calculates+her+housing+ratio+as+31%,+and+her+total+debt+obligation+as+42%.+her+credit+score+is+580.+does+she+qualify+under+fha+underwriting+guidelines?
Yes, She qualifies under FHA underwriting guidelines.
The ratio of mortgage payment to income is considered acceptable if the total mortgage payment does not exceed thirty-one percent of the actual gross income. Ratios above thirty-one percent are permissible only if significant correction factors are permissible as described in HUD 4155.1-4. government loan. FHA primary function. To ensure that low-income households are first-time buyers.
To exclude non-mortgage or mortgage debt from a borrower's DTI ratio, the lender must receive a recent twelve-month check or bank statement from the party making the payment. This is twelve months of payment document history. No delinquency. To calculate your housing cost rate, simply take the sum of all your real estate costs and divide it by your pre-tax income.
Disclaimer:- your question is incomplete, please see below for the complete format.
Celeste hopes to qualify for an FHA loan. she calculates her housing ratio as 31% and her total debt obligation as 42%. her credit score is 580. does she qualify under FHA underwriting guidelines?
Learn more about FHA Loan here:-https://brainly.com/question/1191495
#SPJ9
When employees are paid for exactly how much time they work, they are paid on a(n) _____ basis.
When employees are paid for exactly how much time they work, they are paid on a(n) hourly basis.
Briefing :Employees who are purchased the exact amount of working time, that is, they're paid by the hour, receive a variable wage. this suggests that the salary these employees receive depends exclusively on the number of hours they work.
Is the amount of time for which an employee is paid?A pay period may be a recurring length of time over which employee time is recorded and paid for. samples of pay periods are weekly, biweekly, semimonthly, and monthly. Weekly: A weekly pay period leads to 52 paychecks in a year
Is the compensation paid on the basis of a rate per hour worked?Base pay is that the initial salary paid to an employee, not including any benefits, bonuses, or raises. it's the rate of compensation an employee receives in exchange for services. An employee's base pay are often expressed as an hourly rate or weekly, monthly, or annual salary.
Learn more about Wage rates :
brainly.com/question/26699459
#SPJ4
Boomer company purchased office equipment for $1,000 on december 5. the office equipment depreciated $30 during december. the adjusting entry should include a:________
Boomer company purchased office equipment for $1,000 on december 5. the office equipment depreciated $30 during december. the adjusting entry should include a: Debit to Depreciation expense $ 30
Adjusting entries correct previously recorded journal entries, allowing revenue and costs to be recognized as they occur.
Assume, for example, Depreciation that you bill a customer for $1,000 in services in December. They then pay you in January or February, after the previous fiscal year has ended.
To begin, you record the cash in December as profit expected to be collected in the future in accounts receivable. Then, when the client pays in February, an adjustment entry must be made to record the receivable as cash.
This is referred to as an accrued revenue adjustment entry.
To learn more about Adjusting entry from the given link:
https://brainly.com/question/13716497
#SPJ4
Costs associated with inspecting, unpacking and putting incoming inventory into storage are components of ____ cost.
Expenses related to examining, unpacking, and setting incoming stock into storage are components of Ordering or setup charges.
Storage means the act of retaining things and the vicinity wherein you maintain them. That can be fixtures designed to maintain small objects: Bookcase, cabinet (fixtures), Chest (furniture), cabinet, desk, Sideboard (hutch), fridge, and many others.
Information storage refers to the usage of recording media to hold records of the usage of computer systems or different devices. The most familiar sorts of statistics storage are document storage, block storage, and object storage, with every being ideal for extraordinary functions.
A storage unit is shelving for maintaining goods, commonly in a warehouse and not at the sales ground. Refrigerated storage gadgets within the distribution centers shop perishables. Use storage units with drawers for small gadgets which include socks and ties, so that the income region is not cluttered.
Learn more about storage here:
https://brainly.com/question/24227720
#SPJ4
Sal needs to figure out how to schedule employees to cover shifts at the hospital during the holidays. He needs to be sure that there are enough doctors, nurses, janitors, receptionists, lab technicians, and radiologists on staff so that any emergency would not put the hospital into crisis mode. Even though billing and intake are not critical to emergencies they also will need coverage. How will sal figure out how many staff he needs to keep the hospital functional throughout the holidays?.
Sal uses management science to determine how many employees he needs to keep the hospital operating during the holidays.
Sal can use management science to apply scientific methods and statistical methodologies to enhance strategic decision-making. That will aid Sal in determining the ideal mix of medical and non-medical employees needed throughout the holidays.
Any scientific method used to examine management science is referred to as management science. The word "management science" (frequently used in the plural), which was once used to refer to operations research, now denotes a separate discipline. Operations research provides analytical data, statistics, and methodologies to boost management system effectiveness; management science applies these skills to areas including data mining, engineering, economic forecasting, and logistics.
Operations research, systems analysis, and the study of management-information systems were all included in the early definition of management science, which was any application of science to management issues or the management process itself. The Institute of management science (TIMS), a development of the Operations Research Society of America, was established in 1953 and its constitution reflects this comprehensive concept of the field's breadth (ORSA). The "goals of the Institute shall be to identify, extend, and converge scientific knowledge that contributes to the understanding and practice of management" were declared in the statement.
Learn more about management science here
https://brainly.com/question/13609051
#SPJ4
After a company has made an investment in a capital asset, what will it conduct to compare the actual net cash inflows to the projected net cash inflows?
Company will conduct net present value, accounting rate of return and payback period to compare the actual net cash inflows to the projected net cash inflows.
What is net present value?Net present value (NPV) is used to calculate the current value of a future stream of payments from a company, project, or investment. To calculate NPV, you need to estimate the timing and amount of future cash flows and pick a discount rate equal to the minimum acceptable rate of return.
What is accounting rate of return (ARR)?The accounting rate of return (ARR) is a formula that reflects the percentage rate of return expected on an investment or asset, compared to the initial investment's cost.
What is payback period?Payback period is defined as the number of years required to recover the original cash investment. In other words, it is the period of time at the end of which a machine, facility, or other investment has produced sufficient net revenue to recover its investment costs.
To learn more about net present value, refer: https://brainly.com/question/14293955?referrer=searchResults
#SPJ4
If you were conducting a financial feasibility analysis for embrace, (a) what issues would you consider to complete this analysis and (b) why are those issues important?
Financial feasibility describes whether your project is financially viable. Financial feasibility report including cost/benefit analysis of the project. It also forecasts expected return on investment (ROI) and outlines financial risks.
It is important to consider the Financial feasibility for people who want to buy it and then long-term inventory for rent. The “growth of the company” and the need to determine income and expenses are also important. Issues such as these are important not only to reach the breakeven point but to exceed it.
The most important questions to consider in a financial viability analysis are the total amount of cash needed to start, the financial performance of similar businesses, and the overall financial attractiveness of the business. proposed business.
Learn more about financial feasibility here:-https://brainly.com/question/15016731
#SPJ4
Why is it important to think about earning potential and employment growth rate when thinking
about a trade to pursue?
It is important to think about earning potential and employment growth rate when thinking about a trade to pursue because it gives you valuable insight into how easy it will be for you to get employed in that particular occupation. Say that you already know what career you want to pursue.
Total employment is projected to grow by 8.3 million jobs from 2021-31. Nearly a third of recent jobs are projected to be in tending and social assistance. Pandemic recovery could be a key driver of projected job growth in some sectors. The activity Outlook reference book options 2021-31. Jobs growth is measured within the U.S. by the number of workers other than nonfarm payrolls monthly, as reportable by the U.S. Bureau of Labor Statistics (BLS).
It's a key indicator of the pace of economic expansion. Nonfarm payrolls are a part of our state of affairs outline printed by the BLS, the widely followed applied mathematics release higher referred to as the monthly jobs report. Jobs growth refers to internet increases within the variety of nonfarm payrolls throughout the previous month. This number is widely followed as a result employment is crucial for economic performance.
Learn more about Employment here: https://brainly.com/question/1446509
#SPJ1
Suppose+a+state+of+california+bond+will+pay+$1,000+eight+years+from+now.+if+the+going+interest+rate+on+these+8-year+bonds+is+6.2%,+how+much+is+the+bond+worth+today?
In the event that a State of California Bond pays $1,000 in eight years. These 8-Year Bonds' current value is $618.02 if the going interest rate is 6.2%.
A bond is a fixed-income investment that simulates a loan from a shareholder to a borrower (typically corporate or governmental). An I.O.U. between the lender and borrower that specifies the terms of the loan and its installments is what is meant by a bond. Businesses, local governments, states, and other types of government use bonds to finance their operations and capital expenditures. The holders of bonds are the issuer's creditors or debtors.
Bond specifics typically include the conditions for the borrower's variable or fixed interest payments as well as the end date by which the loan's principal is needed to be paid to the bond owner.
The calculation is:
PV= FV/ (1+r)n
where PV= Present Value ; FV= Future Value; r= interest rate; n= number of years
so,
PV= 1000/ (1+.062)8 = 1000/1.6181= 618.02
Learn more about Bond here
https://brainly.com/question/17405470
#SPJ4
You+want+to+set-up+a+scholarship+fund+at+san+jose+state+university,+which+pays+a+student+$5,000/year,+indefinitely.+assuming+a+discount+rate+of+4.25%,+how+much+would+you+need+today?
The present value of perpetuity will be - $ 1,17,647.
given, annual cashflow = 5000
rate of interest = 4.25% = 0.0425
Present value of perpetuity will be = annual cashflow/ rate of interest
= 5000/ 0.0425
= $117,647
In finance, a perpetuity is a security which reimburses a constant cash flow. It's primarily an income stream with no set end date. Merely dividing the amount of the frequent cash flows by the discount factor produces the current value of a perpetuity. A growing perpetuity has a growth rate that elevates the cash flows obtained in each period in the coming years. Perpetuities are uncommon financial products these days, however the notion of a perpetuity still it seems to be crucial in finance.
Learn more about perpetuity here:
https://brainly.com/question/24261067
#SPJ4
The complete question is here:
You want to set-up a scholarship fund at San Jose State University, which pays a student $ 5000/year, indefinitely. Assuming a discount rate of 4.25%, how much would you need today.