A $2 million deposit earns 7 percent for 13 years. If the account earns 9 percent per year forever after that, how long will it take to grow to $5 million?
A. 0.26 year
B. zero; the account exceeds $5 million after 13 years
C. 0.43 year
D. 1.18 years
Answer: C
You might also like to view...
Purchase decision making usually begins with information search and then moves to evaluation of alternatives
Indicate whether the statement is true or false
In a buying center, gatekeepers are the people who:
a. actually use a product. b. influence a buying decision. c. regulate the flow of information. d. negotiate a purchase.
When assets are purchased as a group, the total cost must be divided up and allocated to each asset in proportion to the market value of the assets as a whole.
Answer the following statement true (T) or false (F)
Business risk is concerned with the operations of the firm. Which of the following is not associated with (or not a part of) business risk?
a. Demand variability. b. Sales price variability. c. The extent to which operating costs are fixed. d. Changes in required returns due to financing decisions. e. The ability to change prices as costs change.