UNDERSTANDING BUSINESS (LL) >CUSTOM<
UNDERSTANDING BUSINESS (LL) >CUSTOM<
11th Edition
ISBN: 9781260660647
Author: Nickels
Publisher: MCGRAW-HILL HIGHER EDUCATION
Question
Book Icon
Chapter 19, Problem 1CT
Summary Introduction

To think critically about: In what proportion should an individual should invest if there are two situations and the person has $50,000 with him.

Introduction:

Investing is an activity of putting money into financial schemes, property, stocks, or a property with the expectation of achieving a return on it.

Expert Solution & Answer
Check Mark

Explanation of Solution

Given information:

An individual is having $50,000 and has two financial goals that are his wedding planned in two years and savings for retirement, in which he invests.

Explanation:

An individual must consult an advisory firm, or should do a good investment research on his own with the help of articles, newspapers and other sources. After gathering of information, the most suited investment option should be choose and proportionately it should be invested for both the upcoming situations.

As expenses of wedding are too much, so a large proportionate of money should be invested for the purpose of wedding in stocks as it yields a higher rate of return, and rest of the amount should be kept in a saving account which will also earn some interest on the deposited amount.

Conclusion

Thus, individual must invest the amount in stocks and mutual funds proportionately, so that it earns returns and interest in 2 years.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
d. Reflect on the impact of infrastructure on entrepreneurial ventures like Savannah Organics. What improvements could help reduce barriers? (3 marks) e. How important was Thato's ability to innovate and adapt in overcoming environmental challenges? Provide examples from the case to support your answer. (3 marks)
accreditation. Thato had to work with international bodies, adding complexity and expense to her operations. Despite these challenges, Thato capitalized on the strengths of the entrepreneurial environment. She formed partnerships with local agricultural cooperatives and NGOs, enabling her to access shared resources, knowledge, and training programs. She also collaborated with the government to participate in a public-private initiative promoting sustainable farming, which provided her with a modest grant. Thato leveraged digital platforms to connect directly with customers, eliminating intermediaries and offering competitive pricing. Her ability to innovate and adapt proved critical in sustaining her business, even during economic disruptions caused by the COVID-19 pandemic. By the end of 2023, Savannah Organics had expanded its operations to 15 hectares, supplying produce to supermarkets across the country and partnering with health-focused restaurants. Thato's journey highlights both…
A sharing economy can be described as an economic model in which goods and resources are shared by individuals and groups in a collaborative way such that physical assets become services. The sharing economy enables people and organisations to earn profits from underutilised resources. Discuss using relevant example and referencing the impact of sharing economy. (20 marks)
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,