Answer:
A falling interest rate will lead to a movement along the demand curve for loanable funds
Explanation:
A movement along the demand curve for a good or service is caused by a change in the price of the good or service.
Because the interest rate is the price of the loanable funds, a falling interest rate will cause a movement along the demand curve for loanable funds. More specifically, a falling interest rate, in other words, a lower price, will increase the demand for the loanable funds, so the movement will be upwards.
Answer:
Closed-End Fund
Explanation:
Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.
Answer:
FV= $240.08
Explanation:
Giving the following information:
Sue now has $125.
Number of periods= 8 years
Interest rate= 8.5% with annual compounding
<u>To calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 125*(1.085)^8
FV= $240.08
Bragmore should lend his spare pair of goggles to his primary competitor Aprince and should play fair.
<u>Explanation:</u>
Winning is very important in a competition but more than winning what matters more is playing fair and playing hard to compete with your competitors where every one is given equal chances to show their strength and capabilities.
Even though not giving goggles to his primary competitor will increase the chance of Bragmore to win the race easily and he will win the cash prize but that would not be a fair fight. So he should fight giving equal opportunities to his competitor also and give his spare goggles to his competitor.
Answer:
$12,500
Explanation:
Bonus = 10% x ($200,000 - taxes)
Bonus = $20,000 - 0.1T
So we must now find T:
T = 40% x ($200,000 - Bonus)
T = $80,000 - 0.4Bonus
now we can replace:
Bonus = $20,000 - 0.1($80,000 - 0.4Bonus)
Bonus = $20,000 - $8,000 + 0.04Bonus
Bonus - 0.04Bonus = $12,000
0.96Bonus = $12,000
Bonus = $12,000 / 0.96 = $12,500
