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Anvisha [2.4K]
3 years ago
14

A company plans to invest X at the beginning of each month in a zero-coupon bond in order to accumulate 100,000 at the end of si

x months. The price of each bond as a percentage of redemption value is given in the following chart:1 2 3 4 5 6 ; 99% 98% 97% 96% 95% 94%; Calculate X given that the bond prices will not change during the six-month period.
Business
1 answer:
anyanavicka [17]3 years ago
5 0

Answer:

x = $16,078.46

Explanation:

$100,000 = 1.0101x + 1.0204x + 1.0309x + 1.0417x + 1.0526x + 1.0638x

$100,000 = 6.2195x

x = $100,000 / 6.2195 = $16,078.46

month               investment              value at end of month 6

1                         $16,078.46                    $17,104.74

2                        $16,078.46                    $16,924.68

3                        $16,078.46                    $16,748.39

4                        $16,078.46                    $16,575.73

5                        $16,078.46                    $16,406.59

6                        $16,078.46                    $16,240.87

total                  $96,470.76                     $100,001*

*the extra $1 is due to rounding errors.

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Vilal
shepuryov [24]

Answer:

I'm sorry but you got your task is to find 10 hidden words that in a group of jumbled letters in the box below? Where is the box below I do not see nothing?

7 0
2 years ago
On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what would be the amount of the
worty [1.4K]

Answer:

b. $1750

Explanation:

Provided that

Sale of the company = $87,500

Credit terms = 2% if payment is received within 10 days and the prescribed time limit is 30 days

The amount of the sales discount would be

= Sale of the company × discount percentage

= $87,500 × 2%

= $1,750

We simply multiplied the sale of the company with the discount percentage so that the sales discount could come

6 0
3 years ago
The following transactions occur for Cardinal Music Academy during the month of October: Provide music lessons to students for $
givi [52]

Answer:

See explanation section

Explanation:

1. Debit     Cash                   $17,000

Credit            Service revenue (music)       $17,000

<em>Note: The academy receives cash by providing music services to the students.</em>

2. Debit     Prepaid Insurance          $4,200

Credit                    Cash                                 $4,200

<em>Note: The academy paid cash in advance to purchase insurance policy.</em>

3. Debit    Musical Equipment           $20,000

Credit                     Cash                                    $20,000

<em>Note: The academy paid cash for acquiring musical equipment.</em>

4. Debit     Cash                              $30,000

Credit             Notes payable                           $30,000

<em>Note: The academy borrowed cash by signing a notes from the bank.</em>

8 0
3 years ago
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Answer:

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Explanation:

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7 0
2 years ago
Read 2 more answers
Which of the following is capable of increasing real GDP in the long run?
Alja [10]

Answer: Option (c) is correct.

Explanation:

Correct Option - An increase in the state of technology.

The aggregate supply curve in the long run is a vertical line and parallel to the y-axis. |t is perfectly inelastic in the long run.

Now, if there is increase in the money supply in the economy then this will increase the aggregate demand in the short run. Hence, aggregate demand curve shift rightwards, as a result real GDP increases in the short run and move beyond the potential level of real GDP.

Also, there is a creation of inflationary gap in the economy, as a result real GDP shifts back to its initial position at potential real GDP. So, there is no increase real GDP in the long run.

Similarly, decrease in interest rates and an increase in government spending will also results in inflationary gap in the economy. Therefore, doesn't affect the real GDP in the long run.

But an increase in the state of technology is capable of increasing real GDP in the long run. Improvement in the state of technology will shift the long run aggregate supply curve rightwards, as result there is an increase in potential GDP in the long run.

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