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IceJOKER [234]
3 years ago
7

Finding the interest rate and the number of years The future value and present value equations also help in finding the interest

rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $15,573.16 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made?
a. 3.20%
b. 0.24%
c. 1.22%
d. 4.00% for this investment to reach

If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take a value of $44,089.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made?

a.If you invest $1 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000.
b. If you invest $5 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000
Business
1 answer:
zhuklara [117]3 years ago
3 0

Answer:

4.00%%

a

Explanation:

F = P( 1 + r) ^n

15573.16 = 12800 * (1 +r) ^5

\frac{15573.16}{12800}  = (1+ r) ^{5}

1.217 = (1 + r)^{5}

1 + r  = \sqrt{1.217}

r = 1.0400 - 1 =  0.0400 * 100 = 4.00%

F = p(1+ r) ^ n

P = \frac{100000}{(1 + 0.15)^{82.3753} }

P =  1

Therefore the correct option is a

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The correct answer is letter "A": free trade.

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Free trade allows countries to share their goods and services without boundaries. The most important factor possible thanks to free trade is the access to knowledge and information that could boost economies with low innovation to gather ideas of what actions can be taken to improve their situations.

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. C) a drop in the foreign exchange value of the dollar.

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What is the biggest attraction for business considering enganing in international business?
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3 years ago
Suppose you work for a mutual fund firm. Your team is thinking of investing in Wizard’s stock. Your task is to create a report o
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<u>Investment analyst</u>

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If the market price of preferred stock is $230 per preferred stock, then selling 100 preferred stocks should = $23,000

If we add both we would get $105,500. If we want to allocate the proceeds proportionally according to their market prices:

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preferred stocks = ($23,000 / $105,500) x $100,000 = $21,801

the journal entries should be:

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  • Cr Common Stock account 5,000
  • Cr Capital Paid-in Excess of Par Value (Common Stock) account 73,199

  • Dr Cash account 21,801
  • Cr Common Stock account 10,000
  • Cr Capital Paid-in Excess of Par Value (Preferred Stock) account 11,801

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