Ear for investment choice
You have found three investments choices for a one-year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.)
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During periods of hyperinflation money does not hold its value long enough to make everyday market purchases, therefore people hold as little as possible for asshort a time as possible.
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Explain why Pizza Hut has expanded its offerings of pizza over the past five decades, and discuss the long-run profitability of such a strategy.
What price will the monopolistically competitive firm charge in this market? How much profit will the monopolistically competitive firm earn in this situation?
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