Answer:
Macaroni and cheese is an inferior good.
Explanation:
From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.
If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.
Answer:
Yes
Explanation:
Given:
- Coupon rate = 9%, because it pays the coupon semiannually, so
=> Coupon payment = 1000*9%/2 = 45
- Current market rate, YMT= 10%
So the current value of bond is:
C(1- (1+r)^(-n)/r + F/(
<=>45(1 - (1+0,1)^(-7/0.1)) + 1000(1+0,1)^7
<=> C = $951
So she will buy the bonds at the offered price 943.22 because it is smaller than $951
Answer:
The correct answer is letter "C": delay until further clarity emerges.
Explanation:
American Professor Alfred A. Marcus (born in 1950) in his book "<em>The Future of Technology Management and the Business</em>" (2015) explains hedging could be a strategy to protect companies in front of the rapidly changing environment they face because of the constant introduction to technology in the market. According to Marcus, there are five (5) hedging strategies firms could implement:
- Gamble on the most probable: <em>work on the product with the highest success rate.
</em>
- Take the robust route: <em>invest in as many products as possible.
</em>
- Delay until further clarity emerges: <em>waiting for a proper moment to react in front of market changes.
</em>
- Commit with a fallback: <em>adapt according to the market.
</em>
- Try to shape the future: <em>innovate.</em>
Answer:
Holly must save $2845.81 at the end of each year
Explanation:
first calculate the value of tuition fees at n = 18
Cash flow formula = Tuition × 
Discounted CF formula = Cash flow ÷ 
10.00% 0
Year Cash flows Discounted CF
0 33,799.32 33799.32
1 36,165.28 32877.52
2 38,696.84 31980.86
3 41,405.62 31108.66
FV = $129,766.37
PV = 0
N = 18
rate = 10%
using PMT function in Excel
Annual contribution = $2845.81