As you think about your financial goals, you’ve likely begun to realize something—you often have to give up something in order to achieve something else. Every monetary decision we make involves a level of choice, usually of one thing over another. This can be a painfully hard decision at times but one we must learn to make. If you choose to save up for a car instead of traveling around Europe with friends, that is your decision. If you choose to buy an expensive pair of shoes because they’re irresistible, that decision may translate into less restaurant visits that month. Everything has a financial trade off, a reality known as an opportunity cost. These are things you gave up the opportunity of buying when you chose to pay the cost for something else. While they are unavoidable in most situations, they are always worth noting.

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.

What is one of the advantages of getting a government-sponsored mortgage instead of a conventional mortgage