Answer:
Explanation:
The $35,000 that will be needed in 3 years is a future value (FV).
This is an ordinary annuity, and it is asking for the recurring payment (PMT)
Using a financial calculator, input the following;
Future value; FV = 35,000
Total duration ; N = 3*12 = 36 months
Interest rate; I = 3.4%/12 = 0.2833%
One time present cashflow; PV = 0
then compute recurring payment ; CPT PMT =924.86
Answer:
The Reserve Bank's responsibilities include formulating and implementing monetary policy, promoting financial stability, issuing banknotes, providing banking services to government, operating the high-value payments system, managing Australia's foreign reserves and setting payments system policy.
Answer:
TRUE
Explanation:
acceptance of a contract becomes effective, regardless of the medium of sending and receiving the information.
Answer:The cost of capital that will make both investments equal is 17.045%
Explanation:
Investment A
$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.
Value of Investment A = 1500 000/r
Investment B
$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.
Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)
Value of investment B = 1236000/(r - 0.03)
1500 000/r = 1236000/(r - 0.03)
1236000(r) = 1500000(r - 0.03)
(r - 0.03) = 1236000( r)/1500000
r - 0.03 = 0.824r
r - 0.824r = 0.03 = 0.176r = 0.03
r = 0.03/0.176 = 0.170454545
R = 17.045%
The cost of capital that will make both investments to be equal is 17.045%
