Because application letters are ________ messages, the aida approach is ideally suited for them.

Stone and brick are substitutes in home construction. consider the market for bricks depicted below. suppose the price of stone

sp2606 [1]

Answer: Price of bricks will increase

Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.

8 0

2 years ago

Read 2 more answers

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre

Fynjy0 [20]

Answer:

The correct answer is $7,056.46

Explanation:

Giving the following information:

You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. How much do you need to save each year if you can earn 7.5 percent on your savings?

Final value= 55,000*25= 1,375,000

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,375,000*0.075)/[(1.075^38)-1]= $7,056.46

5 0

2 years ago

An investor buys a 5-year, 9% coupon bond for $975, holds it for 1 year, and then sells the bond for $985. What was the investor

Ann [662]

Answer:

hence investor's rate of return is 10.26%

Explanation:

Given data

time = 5 year

rate = 9%

coupon bond = $975

sell bond = $985

at time = 1 year

to find out

investor's rate of return

solution

we will find first here Coupon payment that is

Coupon payment = 9% of 1000 that is $90

so that we can say that coupon bond will be

975 = 90 / (1 + r ) + $985 / (1 + r )

solve here r we get r

rate r = 10.26 %

so

hence investor's rate of return is 10.26%

3 0

2 years ago

The Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of $500,000, to the new arena

Natasha_Volkova [10]

Answer:

The required cash flow to earn 15% per year is $ 149,157.8

Now, If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible/advisable.

Explanation:

Solution

Given that:

Milwaukee Bucks are considering whether they should add an additional vending area, at a cost of = $500,000

The investment to be made will result in a ROR = 15%

Expected revenue = between $138,000 and $165,000

Now,

The Computation of Required Cash flow per year is stated as follows:

= Initial Investment / PVAF (r%, n )

= $ 500,000 / PVAF (15%, 5)

= $ 500,000 / 3.3522

= $ 149,157.8

Thus,

The required flow of cash to earn 15% per year is $ 149,157.8

If the expected cash flow is more than $ 149,157.8 per year, they can invest the amount, else it is not suggestible.

7 0

2 years ago

For the following problem(s), consider these debt strategies being considered by a corporate borrower. Each is intended to provi

natita [175]

Answer:

From the strategies provided, the correct debt strategies that will help a corporate borrower eliminate credit risk are strategy 1 and strategy 2, which are; Strategy #1: Borrow $1,000,000 for three years at a fixed rate of interest of 7%. and Strategy #2: Borrow $1,000,000 for three years at a floating rate of LIBOR + 2%, to be reset annually. The current LIBOR rate is 3.50%.

5 0

2 years ago