The Price of an Antique Is Expected to Rise by 4

question 12

Multiple Choice

The price of an antique is expected to rise by 4% during the next year.The interest rate is 6%.You are thinking of buying an antique and selling it a year from now.You would be willing to pay a total of 400 dollars for the pleasure of owning the antique for a year.How much would you be willing to pay to buy this antique?

• A)6,666.67 dollars
• B)8,400 dollars
• C)400 dollars
• D)20,000 dollars
• E)4,000 dollars

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Definitions:

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The process of monitoring and managing expenses to adhere to a budget and maximize efficiency.

Managers' Performance

The evaluation of how effectively managers achieve objectives, manage resources, and lead teams, often impacting company success and efficiency.

Investment Center

A business unit or division that is responsible for its own revenues, expenses, and investments in assets.

Return On Investment

A metric for assessing how well an investment is doing by comparing the net profit to the investment's initial cost.