FREE Trial

Your employer offers you a choice of two bonus packages: $1,400 today or $2,000 five years from now. Assuming a 6 percent rate of interest, which is the better value? Assuming an interest rate of 10 percent, which is the

Your employer offers you a choice of two bonus packages: $1,400 today or $2,000 five years from now. Assuming a 6 percent rate of interest, which is the better value? Assuming an interest rate of 10 percent, which is the better value?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

At 6 interest rate 2 000 five years from now is wo…View the full answer


answer-question
Related Book For  answer-question
Macroeconomics

Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

See More Books
Posted Date: February 12, 2016 05:05:00
See More Questions

Students also viewed these Economics questions

Q:
Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the companys stock. Whichever one you choose will be awarded today. The stock is currently trading for $63 per share....
A:
Plan There are two related but different decisions to analyze In both cases you will take that choic......
Q:
Multiple Choice Questions: 1. Which of the following is part of the economic way of thinking? a. When an option becomes less costly, individuals will become more likely to choose it. b. Costs are...
A:
1 d Both a and b are part of the economic way of thinking 2 b 0 40 3 b Has a comparative......
Q:
Assume your employer offers you the opportunity to participate in the companys 401(k) retirement plan. a. Would you participate in the companys retirement plan? Justify your answer. b. Assume you...
A:
a Most employees opt to participate in an employer sponsor......
Q:
Suppose you have agreed to take a short-term loan amounting of $2,000,000 from your banker. The loan tenure begins on 3 months from today and the financing rate is based on 6-month LIBOR. However,...
A:
a In this scenario you should take a short position for the FRA A short position in an FRA means tha......
Q:
An analyst wishes to prepare a decision table for purchase order procedures. First, there is a credit check of the customer. If credit is approved, the order is accepted. If the order calls for 0 25...
A:
a Limited Entry b Extended Entry A......
Q:
A ride hailing company has their DB structured in 3 major tables as described in the SCHEMA section below. Write a query to fetch the top 100 users who traveled the most distance using the service....
A:
SELECT TOP 100 USERS name SUM RIDES distance AS distance traveled FROM USERS INNER JOIN RIDES ON RID......
Q:
Which of the following would you recommend using to deal with the white ring problem of the HomePods if we decide to measure the frequency of customers complaining about this problem? a) x-bar and...
A:
b......
Q:
Winfrey Co.s March 31 inventory of raw materials is $150,000. Raw materials purchases in April are $400,000, and factory payroll cost in April is $220,000. Overhead costs incurred in April are:...
A:
Part 1 Total manufacturing costs and the costs assigned to each job 306 307 308 April Total From March Direct materials 14 000 18 000 Direct labor 18 000 16 000 Applied overhead 9 000 8 000 Beginning......
Q:
Jessica is quite conservative when it comes to politics. Some of her co-workers have mostly liberal views, and Jessica does not feel comfortable expressing her political views around these...
A:
1 Noelle Neumann s Spiral of Silence Theory This theory suggests that individuals are often hesitant to express minority opinions for fear of social isolation or backlash In Jessica s situation she re......
Q:
A drop hammer is used to drive a hollow steel post into the ground. The hammer is placed inside the post by a crane. The crane lifts the hammer and then drops it so that it falls onto the baseplate...
A:
a kinetic energy E 1 2 mv 2 Here E kinetic energy m mass......
Q:
State whether you agree or disagree with the following statements: a. If stock market prices go up, the economy is richer. b. A real asset worth $1 million is more valuable to an individual than a...
A:
a Agree Disagree Technically a rise in stock prices does not imply a richer economy If however the r......
Q:
Suppose the price of a one-year bond with a $100 face value that pays 10 percent interest is $98. a. Are market interest rates likely to be above or below 10 percent? Explain. b. What is the bond's...
A:
a Market rates are likely to b......
Q:
A rigid tank contains a mixture of 4 kg of He and 8 kg of O2 at 170 K and 7 MPa. Heat is now transferred to the tank, and the mixture temperature rises to 220 K. Treating the He as an ideal gas and...
A:
The masses pressures and temperatures of the constituents of a gas mixture in a tan......
Q:
Why might an Access Control List (ACL) on a router that dropped packets from IP addresses identified as malicious be ineffective at blocking a SYN-flood denial of service attack?
A:
An Access Control List ACL on a router that drops packets from IP addresses identified as malicious......
Q:
Calculate the 2017 total tax for Gordon Geist, a single taxpayer without dependents and no itemized deductions. He has active income of $41,000, a short-term capital gain income of $3.200 from the...
A:
To calculate Gordon Geist s 2017 total tax we need to determine his taxable income and then apply th......
Q:
Financial statements for Vernon Company follow. Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land...
A:
a Working Capital 2019 Current Assets Current Liabilities 274 200 177 000 97 200 2018 Current Assets Current Liabilities 241 200 165 000 76 200 b Current Ratio 2019 Current Assets Current Liabilities......
Q:
Show the depth-first search tree that results from running depth-first search on the graph below, starting at vertex a. You should assume that the neighbors of a vertex are considered in alphabetical...
A:
Click to View...
Q:
Discuss the different ways in which Database Administrator (DBA) can store the data of ABC enterprise implementing Accounting Information System (AIS).
A:
Indexing DBAs can create indexes on specific columns within the database This allows for faster retrieval of data when searching or sorting by those c......
Q:
Determine the equation of the line of best fit from the data indicated in the exercise. Round both m and b to the nearest hundredth. Exercise 19. Data from exercise 19: x . . . . . . . . y 4 . . . ....
A:
b 58 m m 134 10......
Q:
Outline some of the major problems confronting an international advertiser.
A:
Of all the elements of the marketing mix decisions involving advertising are the ones most often a......
Q:
How can a country that does not have an absolute advantage in producing goods still benefit from trade?
A:
All countries can benefit from trade as long as they speci......
Q:
China has experienced levels of economic growth in the last decade that have been about 5 times that of the United States (10% versus 2% per year in the United States). Has Chinas high growth rate...
A:
No Scarcity still exists in China Growth alone does not eliminate sc......
Q:
Assume initially that the demand and supply for premium coffees (one-pound bags) are in equilibrium. Now assume Starbucks introduces the world to premium blends, and so demand rises substantially....
A:
A growing demand will cause prices to rise as more consumer......
Q:
Refer to the following table summarizing results from a study of people who refused to answer survey questions (based on data from "I Hear You Knocking but You Can't Come In," by Fitzgerald and...
A:
a There are 1205 people surveyed 1049 of whom responded and 156 of whom refused to respond The......
Q:
A pharmaceutical company is producing and marketing a ginkgo biloba supplement to enhance memory. In an experiment to test the product, subjects were assigned randomly to take ginkgo biloba...
A:
a If the mean memory scores for people taking gingko biloba and pe......
Q:
A pharmaceutical company is planning to develop a new drug. The development will take place in two phases. Phase I will cost $1 million and Phase II will cost $2 million. Any new drug has to be...
A:
New Drug Development Using Bayes Theorem equation 15 6 Priors P Approval 0 7 P Rejection 0 3 Given C......
Q:
A 40,000-seat college football stadium is used 22 times for games, concerts, and graduation ceremonies. Each event averages four hours and assumes the stadium is full for each event. The stadium is...
A:
Utilization U Resources Used Resources Available Eq 7 1 Notice the focus is stadium......
Q:
Under Rowena's will, Mandy (Rowena's sister) inherits her property. One year later, Mandy dies. Based on the following independent assumptions, what is Mandy's credit for the tax on prior transfers?...
A:
a 700 000 100 700 000 Under 2013 use the lesser of 700 000 or 800 0......
Q:
The following information is available for Fess Company: Credit sales during 20X1 ...................................................................................... $150,000 Allowance for credit...
A:
Requirement 1 We can determine the amount of credit loss expense in 20X1 by first exami......
Q:
In general, briefly explain how sales and operations planning is conducted?
A:
Sales and operations planning integrates the functional business pl......
Q:
Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $ 60,000, the accumulated...
A:
tr mso height source auto col mso width source auto br mso data placement same cell style0 mso number format General text align general vertical align bottom white space nowrap mso rotate 0 mso backgr......
Q:
Provide a summary of the article entitled "University of Chicago Researchers Find That Blind Children Use Gestures Just as Sighted People Do" in the Week 1 Learning Resources. 2. How do gestures...
A:
Summary of University of Chicago Researchers Find That Blind Children Use Gestures Just as Sighted People Do The article discusses research conducted by the University of Chicago which reveals that bl......
Q:
The time between arrivals at the drive-through window of Barry Harmons fast-food restaurant follows the distribution given in the table. The service-time distribution is also given. Use the random...
A:
Time Between Arrivals Prob RN Interval Service Time Prob RN Interval 1 0 2 0120 1 0 3 0130 2 0......
Q:
Let m equal the median of the posttest grip strengths in the right arms of male freshmen in a study of health dynamics. We shall use observations on n = 15 such students to test the null hypothesis...
A:
a b c The critical region is given by W 1 645 15 16......
Q:
Let X1, X2, ... , X8 be a random sample of size n = 8 from a Poisson distribution with mean . Reject the simple null hypothesis H0: = 0.5, and accept H1: > 0.5, if the observed sum 8i=1 xi 8. (a)...
A:
Let Then Y has a Poisson distributi......
Q:
We return to the planet Mungo. On Mungo, macroeconomists and bankers are jolly, clever creatures, and there are two kinds of money, red money and blue money. Recall that to buy something in Mungo you...
A:
a If Jane spent all of its blue income in the first period it woul......
Q:
The elasticity of demand is used to relate what two variables? Name four factors that influence the elasticity of demand. For each factor, explain why and how it influences demand elasticity. Which...
A:
Elasticity of demand is used to relate two variables the percentage change in quantity demanded of a good or service and the percentage change in its price Four factors that influence the elasticity o......
Q:
On 1st June 2023 Jamilah writes to Yati saying, 'I am considering selling my bicycle and I wonder whether you would like to buy it. I would expect to receive about $ 200 for it. On 9th June 2023 Yati...
A:
1 Agreement between Jamilah and Yati In contract law for an agreement to be legally binding there must be an offer acceptance consideration intention......
Q:
Using the worksheet Data in the attached file, write a sub that will do the following: a). use cell A3 as an anchor cell b). locate the cell where the word Bins is located c). declare a dynamic array...
A:
To accomplish the tasks described in your question you can use VBA Visual Basic for Applications in......
Q:
Hapless Health System (HHS) is a non-stock, nonprofit holding company that owns three nonprofit hospitals in Virginia and manages six others. The company also owns a number of for-profit...
A:
Antitrust Analysis James Peter Advocate 18 th September 2023 To Cabinet Secretary for Justice From James Peter Subject Antitrust Analysis Hapless Health System and Happy Foundation for Medical Care I......
Q:
How is a wireless access point that is also a bridge more efficient in handling network traffic than a wireless access point that is not a bridge?
A:
A wireless access point AP that also functions as a bridge offers several advantages in handling network traffic compared to a standalone wireless access point that is not a bridge Here s how it can b......
Q:
On July 1, 2020, Agincourt Inc. made two sales. 1. It sold land having a fair value of $700,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,101,460. The...
A:
1 7 1 20 Notes Receivable 1 101 460 Discount on Notes Receivable 401 460 Lan......
Q:
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
A:
Team 1 Convertible debt is a complex financial instrument Complex financial instruments combine two or more fundamental financial instruments Convertible debt combines two fundamental financial instru......
Q:
Maccoa Soft, a division of Zayer Software Company, produces and distributes an automated payroll software system. A contribution margin format income statement for Maccoa Soft for the past year...
A:
a Task 1 The fixed costs are not relevant because they will remain the same regardless of whether the special order is accepted The total unit level incremental costs that will be incurred if the spec......
Q:
Maccoa Soft, a division of Zayer Software Company, produces and distributes an automated payroll software system. A contribution margin format income statement for Maccoa Soft for the past year...
A:
a Task 1 The fixed costs are irrelevant because they will remain the same regardless of whether the special order is accepted The total unit level incremental costs that will be incurred if the specia......
Q:
Fad Gadget has never worked so hard in his entire life. It is near midnight, and he is still poring over statistics and tables. Fad recently joined Smashing Pumpkins, a relatively young but...
A:
a The data provided are a scrambled version of an Exhibit that appeared in the Economist of September 19 1992 when a currency crisis in Europe had just erupted The Exhibit presented macro economic sta......
Q:
Problems 113 122. The purpose of these problems is to keep the material fresh in your mind so that you are better prepared for later sections, a final exam, or subsequent courses such as calculus. X...
A:
To find the domain of the composite function f o g where f x x x 2 and g x x 3 x 3 we need to consid......
Q:
There is one item on a cash flow statement that is not a cash flow but affects cash. What is it and why do companies include it on their statements of cash flow?
A:
Companies include the effect of exchange rates on......
Q:
A shopping mall has set up a promotion as follows. With any mall purchase of $50 or more, the customer gets to spin the wheel shown here. If a number 1 comes up, the customer wins $10. If the number...
A:
There are 20 possible outcomes a P winning 1......
Q:
For each of the following lists of premises, derive the conclusion and supply the justification for it. There is only one possible answer for each problem.
A:
Click to View...
Q:
Entries for Equipment Acquisitions Chopin Engineering Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment....
A:
a Equipment Accounts Payable Accounts Payable Equipment 15......
Q:
What is elon musk leadership style? 2. If you become a leader, what leadership style will you apply? 3. How can you develop a competance of each team member?
A:
1 Elon Musk s Leadership Style Elon Musk s leadership style is often described as transformational and visionary He is known for his hands on approach......
Q:
As soon as she graduated from college, Kay began planning for her retirement. Her plans were to deposit $500 semiannually into an IRA (a retirement fund) beginning six months after graduation and...
A:
a Using a calculator enter N 30 x 2 60 I Y 10 2 5 and PMT 500 co......
Q:
Poland-based ULMA Construccin Polska SA Capital Group, formerly Bauma SA, is one of the worls major manufacturers of formwork and scaffolding systems. It also provides construction services and sells...
A:
1 Analyze the common size income statements The change in sales should be first computed 2011 2010 2009 2008 2007 PLN 000 PLN 000 PLN 000 PLN 000 PLN 000 Sales 294 490 215 351 175 446 241 505 222 567......
Q:
In the Exhibits, you will find three main financial statements for two fictitious oil companies. Both firms are involved in exploration, extraction, operation, transportation and refining....
A:
In this case the issue is essentially to decide which of the two firms is the better investment for a generic investor assuming he likes the risk class of these two firms In the analysis we will struc......
Q:
In each case, find the value of p such that the vectors given are perpendicular. a. pi + 2j + 3k and 4i + j + 2k b. 3i + 5j + 2k and i + pj - 4k
A:
a As given vectors are perpendicular therefore dot p......
Q:
Explain which partitioning strategy is suitable to execute following queries: Q1: The organization wants to improve the manageability of displaying the details of the employees who are working in a...
A:
1 The organization wants to improve the manageability of displaying the details of the employees who are working in a certain location For this query the focus is on retrieving employee details based......
Q:
Invent a character and give the information that your peers would need to recommend: How much that person should have saved in their emergency fund? Based on your character's risk appetite, age, and...
A:
Character Name Sarah Thompson Age 30 Risk Appetite Moderate Financial Goals Own a home in the next 10 years and retire comfortably at 60 Recommendatio......
Q:
Write a query that displays the name and price of all drinks with name that includes the string "Matcha". 2. Write a query that displays the name and price of all drinks supplied by vendor with the...
A:
Here are the SQL queries for each of the given tasks 1 Display the name and price of all drinks with......
Q:
Consider is the following linear program steps. max subject to 2x1 + 7x2 + x3 X1 X3 = 7 3x1 + x2 24 X2, X3 0 (a) Convert the above linear program into the standard form, showing your (b) Give three...
A:
Let s work through this linear program step by step a Convert the linear program into standard form......
Q:
Liberty Media Group has bonds that are viewed as a speculative investment. Do some research on the bonds issued by Liberty Media and find their present pricing, the reasons for their present pricing...
A:
Present pricing As of September 24 2023 Liberty Media Group has two outstanding bonds 8 25 1 Feb 2030 USD bond US530715AJ01 3 75 15 Feb 2030 USD bond US530715AL56 The current price of the 8 25 bond is......
Q:
Determine 28% of their adjusted monthly income. The Leungs decided to build a new house. The contractor quoted them a price of $144,500, including the lot. The taxes on the house would be $3200 per...
A:
Gross monthly income 86......
Q:
Which provision could best be justified as encouraging small business? a. Ordinary loss allowed on $ 1244 stuck. b. Percentage depletion. c. Domestic production activates deductions. d. Interest...
A:
a Ordin......
Strategic Marketing Management 1st Edition - ISBN: 0875843107 - Free Book