Calculate the future value of $ 7 comma 000 in a. four years at an interest rate of 9 % per year. b. eight years at an interest rate of 9 % per year. c. four years at an interest rate of 18 % per year. d. why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? a. four years at an interest rate of 9 % per year. the future value of $ 7 comma 000 in 4 years at an interest rate of 9 % per year is $ nothing. (round to the nearest dollar.) b. eight years at an interest rate of 9 % per year. the future value of $ 7 comma 000 in 8 years at an interest rate of 9 % per year is $ nothing. (round to the nearest dollar.) c. four years at an interest rate of 18 % per year. the future value of $ 7 comma 000 in 4 years at an interest rate of 18 % per year is $ nothing. (round to the nearest dollar.) d. why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (select the best choice below.) a. the amount of interest earned in part (a) is really half of the amount of interest earned in part (b) since in part (b) the money grows for twice as many years as in part (a). b. this results because you earn interest on past interest. since more interest has been paid at the end of the time period than at the beginning, the money grows faster. c. the annual interest rate in part (b) is slightly higher than the rate assumed in part (a). this is because of compounding

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

In william rathje's garbology project that focused on household waste, front door interviews found 15 percent of respondents saying that they consumed beer. the trash discard from the same area showed what percentage of household's consuming beer