A well-known financial writer argues that he can earn an
extremely high return buying wine by the case. Specifically, he
assumes that he will consume one $13 bottle of fine Bordeaux per
week for the next 12 weeks. He can either pay $13 per week or buy a
case of 12 bottles today. If he buys the case, he receives a
discount of 9 percent. Assume he buys the wine and consumes the
first bottle today.
What is the EAR of purchasing wine by the case with this discount?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)
A well-known financial writer argues that he can earn an extremely high return buying wine by...
A well-known financial writer argues that he can earn an extremely high return buying wine by the case. Specifically, he assumes that he will consume one $8 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $8 per week or buy a case of 12 bottles today. If he buys the case, he receives a discount of 5 percent. Assume he buys the wine and consumes the first bottle today. What is the EAR...
Investment X offers to pay you $5,900 per year for nine years, whereas Investment Y offers to pay you $8,600 per year for five years. a. Calculate the present value for Investments X and Y if the discount rate is 4 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the present value for Investments X and Y if the discount rate is 14 percent (Do not round intermediate calculations and round your...
1. When it comes to financial matters, the views of Aristotle can be stated as: a. usury is nature’s way of helping each other. b. the fact that money is barren makes it the ideal medium of exchange. c. charging interest is immoral because money is not productive. d. when you lend money, it grows more money. e. interest is too high if it can’t be paid back. 2. Since 2008, when the monetary base was about $800 billion,...
Read about Cokes strategy in Africa in the article below and discuss the ethics of selling soft drinks to very poor people. Is this an issue that a company like Coke should consider? Africa: Coke's Last Frontier Sales are flat in developed countries. For Coke to keep growing, Africa is it By Duane Stanford Piles of trash are burning outside the Mamakamau Shop in Uthiru, a suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across the street,...