Answer:
a. $173
Explanation:
The computation of the amount of interest earned in five years is shown below;
But before that following calculations need to be done
As we know that
Simple interest = Present value × rate of interest × time period
= $2,500 × 8% × 5
= $1,000
Now the future value is
Future value = Present value × (1 + rate of interest)^number of years
= $2,500 ×(1 + 8%)^5
= $2,500 × 1.4693280768
= $3,673
Now the compound interest is
Compound interest = Future value - Present value
= $3,673 - $2,500
= $1,173
Now interest on interest is
Interest on interest = Compound interest - Simple interest
= $1,173 - $1,000
= $173
Answer:
The income effect
Explanation:
The income effect refers to an increase in the purchasing power of customers simply because the products or services that they want to buy are cheaper. Since the price of the products or services decreases, the customers are able to purchase a higher quantity of them.
Answer:
The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%
Explanation:
Capital Market Line (CML)
Expected return on the market portfolio, E(
) = 12 %
Standard deviation on the market portfolio, σ
= 20%
Risk-free rate, 
= 5%
E(
) = + [ E(
) - ] × ( σ
÷ σ)
= 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)
= 8.5%
The characteristic exhibited by the data point on a control chart that falls above the upper control limit is known as a <u>special cause variation</u><u>.</u>
<u></u>
<h3>What is a special cause variation?</h3>
In statistics, a special cause variation refers to a shift in output caused by a specific factor like environmental factors, input parameters etc
In conclusion, the characteristic exhibited by the data point on a control chart that falls above the upper control limit is known as a <u>special cause variation
</u>
<u></u>
Read more about special cause variation
<em>brainly.com/question/17333354</em>
