Answer:
Results are below.
Explanation:
Giving the following information:
Monthly saving= $200
Future value= $9,384.44
Number of years= 3
<u>a) To calculate the Future Value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,400*[(1.11^3) - 1]} / 0.11
FV= $8,021.04
<u>b) To calculate the semiannual deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= semiannual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.15/2= 0.075
n= 3*2= 6
A= (9,384.44*0.075) / [(1.075^6) - 1]
A= $1,295.47
<u>c)</u> i= 0.1375/4= 0.0344
n= 3*4= 12
A= (FV*i)/{[(1+i)^n]-1}
A= quarterly deposit
A= (9,384.44*0.0344) / [(1.0344^12) - 1]
A= $644.89
<u>d)</u> i= 0.115/12= 0.0096
n= 3*12= 36
A= (FV*i)/{[(1+i)^n]-1}
A= monthly deposit
A= (9,384.44*0.0096) / [(1.0096^36) - 1]
A= $219.46
<u>e)</u> i=0.0825/52= 0.0016
n= 3*52= 156
A= (FV*i)/{[(1+i)^n]-1}
A= weekly deposit
A= (9,384.44*0.0016) / [(1.0016^156) - 1]
A= $53.01
Answer:
Since there is not enough room here to elaborate a horizontal financial statement, I attached an excel spreadsheet. Each of the 12 events corresponds to the events detailed in the question.
Explanation:
Answer:
D) Even with an absolute advantage, the United States would have benefited from importing those products for which Britain had a comparative advantage.
Explanation:
The basis for foreign trade are comparative advantages, not absolute advantages. You must remember that in order for trade to be effective and long lasting, both sides must benefit from it, not just one side.
Resources are limited, and that applies to everyone, to every corporation and to every country. You might have an absolute advantage at producing everything, but your production possibilities frontier sets you a limit on what products or combination of products you can produce. Sometimes it might be beneficial to trade and receive some products that you could produce more efficiently, but their opportunity costs might be too high. Probably you can get them at lower costs from foreign suppliers and use those resources for producing something else.
Answer:
True
Explanation:
It is true that this fact violates the efficient markets hypothesis because the efficient markets hypothesis argues that it is impossible to earn above-market returns.
Efficient market hypothesis holds that asset prices reflect all available information. A direct implication is that <u>it is impossible to "beat the market" </u>consistently on a risk-adjusted basis since market prices should only react to new information.
Hence since it is impossible to beat the market, it is impossible to earn above-market returns.