What is the interest rate that should be used to ensure a total balance of $3,000 two years from now if you have a starting balance of $2,000?
What will be an ideal response?
The rate should be 22.4744%.
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What most frightens investors in the stock market is
A. the possibility of losing their investments. B. the possibility of gaining too much from their investments, and the resultant tax consequences. C. the possibility that the prices of many investments may collapse simultaneously. D. the possibility that a company that they have invested in will go bankrupt.
The difference between the cost of raw materials and the price of the final good is known as
a. value added. b. capital consumption allowance. c. a transfer payment. d. net national product.
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50 percent chance that it will be colder than average next year, and a 25 percent chance that it will be warmer than average. If you purchase two shares of XYZ stock and no shares of ABC stock, your expected gain will be ________.
A. $20 B. $30 C. $10 D. $0
Assume Bridget's budget constraint is shown in the graph shown. If she has $48 to spend on these two items, then earrings must cost:
A. $12. B. $8. C. $4. D. $6.