Answer: A. What was your average compounded return per year over a particular period?
Explanation:
Geometric return is calculated by the formula;
= [(1 + r1) * (1 + r2) * (1 + r3) *.... (1 + rn)] ^1/n
This allows for one to calculate the compounding effect over a period of time by showing the compounded annual growth rate which means that it tells what the average compounded return was per year in a particular period.
Answer:
C) a stockout can occur during the review period as well as during the lead time.
Explanation:
In a fixed-period inventory system replenishment orders are sent periodically or after a fixed time interval.
This type of inventory system is not very used anymore as more modern inventory systems are used now, like perpetual inventory system or just in time inventory management. It's not cost efficient.
Answer:
1.22%
Explanation:
The modified duration of the bond gives an indication of change in price due to a 1% change in the yield to maturity,hence, the bond modified duration is computed using the formula below:
modified duration=Macaulay Duration/(1+YTM)
Macaulay Duration=4.2
YTM(initial)=3%
modified duration=4.2/(1+3%)= 4.08
That for 1% change in yield to maturity price would change 4.08%
0.3% change in yield(3.3%-3%)= 4.08%*0.3%=1.22%
You pay it back to the issuer plus interest
Answer:
Present value (PV) = $0.15
Future value (FV) = $19,886
Numb er of years = 52 years
Interest rate (r) = ?
FV = PV(1 + r)n
$19,886 = $0.15(1 + r)52
<u>$19,886</u> = (1 + r )52
$0.15
132,573.33 = (1 + r)52
52√132,573.33 = 1 + r
1.2546 = 1 + r
1.2546 - 1 = r
r = 0.2546 = 25.46%
The annual rate of interest is 25.46%
Explanation:
In this case, we will apply the formula of future value of a lump-sum, which is equal to present value multiplied by 1 plus interest rate raised to power number of years. The future value, present value and number of years were provided with the exception of interest rate. Thus, interest rate becomes the subject of the formula.
