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
Crystal is a single mother with 2 children. She can earn $10 per hour and can work up to 1,800 hours per year. However, if she does not earn any income at all, she will receive government benefits totaling $18,000 per year.
Answers (1)
Peterson Heating & Cooling installs and services commercial heating and cooling systems. Peterson uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job.
Answers (1)
Todd has accumulated assets of $550,000 that he wishes to dedicate to his retirement. Inflation is anticipated to average 2% over the next 20 years. He plans on retiring in 15 years.
Answers (1)
A trade surplus is generally known as a
Answers (2)
The sales budget must be prepared before any other component of the operating budget.
Answers (1)
New Questions in Business
What are the order of in which management can take legal action against a employee
Answers (1)
What best describes an entrepreneur? a. Someone who initiates and assumes the financial risk of a new business enterprise. b. A person who knows how to evaluate which stocks to purchase. c. Someone who can expertly manage other people's investments.
Answers (1)
JRN Enterprises just announced that it plans to cut its dividend from $3.50 to $2.50 per share and use the extra funds to expand its operations.
Answers (1)
Sykora, Inc., which uses a predetermined overhead rate based on direct labor hours, estimated total overhead for the year to be $12,000,000 and total direct labor hours to be 320,000 hours. Calculate Sykora's predetermined overhead rate.
Answers (1)
Appalachian mountain goods has paid increasing dividends of $.10, $.12, $.15, and $.20 a share over the past four years, respectively.
Answers (1)