A Ponzi scheme involves using new investment dollars to trick current investors into thinking they are earning high returns. If someone running a Ponzi scheme is bringing in new investors at a rate of 25% per year and stealing 10% of investments, what return could he pay investors? (Assume the money is never really invested.)
a) 15%
b) 20%
c) 25%
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A Ponzi scheme involves using new investment dollars to trick current investors into thinking they are earning high returns. If someone ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Barriers to communication always can be eliminated True or False
Answers (1)
The Daily Grind sells coffee makers. Its inventory of coffee makers without timers cost $20,000 and is now valued at $10,000. Its inventory of coffee makers with timers cost $35,000 and is valued at $35,000.
Answers (1)
During January, its first month of operations, Knox Company accumulated the following manufacturing costs: raw materials $4000 on account, factory labor $6000 of which $5200 relates to factory wages payable and $800 relates to payroll taxes payable
Answers (1)
27. You want to have $1 million in your savings account when you retire. You plan on investing a single lump sum today to fund this goal. You are planning on investing in an account which will pay 7.5 percent annual interest.
Answers (1)
Which answer is an example of a market? a garage sale sign a teacher's lesson plan book the counter in a donut shop a Bulletin board with advertisements
Answers (1)
New Questions in Business
Under what scenarios could a foodservice operation achieve excellent food and beverage cost percentages, yet incur excessively high labor costs?
Answers (1)
Stuart Weddle's father is 55 years old and wants to set up a cash flow stream that would be forever. He would like to receive $15,000 every year, beginning at the end of this year.
Answers (2)
A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted.
Answers (1)
When banks spend (or loan) money, the money supply increases and when interest / loan payments are received, the money supply declines ... True false
Answers (1)
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements.
Answers (1)