Use Estimation to Select the Best Response $I = \rho r t$

question 51

Short Answer

Use estimation to select the best response. If $I = \rho r t$ and $I = \$ 698.05$ , $r = 9.85 \%$ , and $t = 1 \text { year }$ , estimate $P$ . Choose 700, 7,000, 70, or 70,000. $ __________

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Definitions:

Payback Periods

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Investments

Items or resources purchased with the intention of earning income or increasing in value as time goes on.

Short Payback Period

A time frame in which an investment is expected to be recovered quickly, indicating potential attractiveness.

Revenue

The cumulative earnings generated by a business from sales of products or offering of services over a designated period.