Your Friend Wants to Borrow $2,000 and Pay It Back

question 20

Multiple Choice

Your friend wants to borrow $2,000 and pay it back in one year. She is someone who keeps her word. She agrees to repay you $2,080 in one year. The bank annual interest rate is 5%. Which of the following statements is TRUE?

• A)You will be financially worse off if you make the loan rather than deposit $2,000 in the bank.
• B)You will be financially better off if you make the loan rather than deposit $2,000 in the bank.
• C)The present value of $2,080 payable in one year with an interest rate of 5% is $1,904.76, which is less than the value of the $2,000 you have been asked to lend.
• D)None of the statements is true.

Acknowledge the disproportionate occurrence of psychological issues over physical injuries in recent conflicts.

Comprehend the critical aspect of resilience in coping with and preventing post-traumatic stress disorder within military contexts.

Understand best practices for giving death notifications.

Recognize the role of counselors in the death notification process.

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Definitions:

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products, typically including product, price, place, and promotion.

Variable Costs

Expenses that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment maintenance costs.

Market Skimming

A pricing strategy where a firm charges the highest initial price that customers will pay and then lowers it over time as the demand of the first set of customers is satisfied.