Week 6 Concept Quiz

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In the 2017 commencement address at Washington, Anna Quindlen focused on telling the people that life does not work and one cannot succeed by staying standstill in one place. One needs to move in life...

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In the 2017 commencement address at Washington, An

Ch 39 Corporations #...

There are several stockholders in case of a public corporation. However, the management functions are not performed by the stockholders in case of a public corporation. In case of a public corporation...

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Module 3 Assignment_...

Module Two Notes- A real estate company conducted a study to evaluate the competitive advantages that it could develop for its business activities. The real estate company used regression analysis to...

Module 3 Assignment

Module Two Notes- A real estate company conducted

Q Question 1 5 / 5 pts Why is a dollar worth more today than a dollar received one year from now? Question 2 5 / 5 pts Explain the difference between Compounding and Simple Interest. Your Answer: Question 3 5 / 5 pts Explain the Rule of 72 and provide an example. Question 4 5 / 5 pts Discuss discounting as it relates to Present Value.

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1.A dollar worth more today than a dollar received one year from now is because of the time value of money. A dollar is worth more today because of inflation and various other reasons. Due to inflation, the price increases over a certain period of time and subsequently there is a decrease in the buying power of the dollar. Opportunity Cost also plays a very important role in the time value of money because it involves a benefit which is forgone by an individual for choosing one alternative over the other alternatives available.

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