The type of portfolio that the young investor who is not
afraid of risk choose is the portfolio with a high percentage of stocks. Stocks
are able to return higher compared to others and this makes it give a high risk
because of its performance of providing losses or either profit. The answer is
letter D.
Answer: I honestly have no idea im just stupid and i need points so yea im sry bye
Explanation:
Answer:
While taking a capital budgeting decision of source of fund, or the capital project to be chosen, we sometimes use Payback Period
It is defined as the tenure in which the cash flows will realize the cost of project, that is the period in which the entire cost will be paid back.
This provides the information regarding the time after which the project will be profitable, or the time at which it will reach break even.
The payback uses the criteria that if the payback period calculated is less than life of project it shall be accepted, in case it is equal to life of project then there will be no profit no loss, and in case payback is higher than life of project then there will be loss.
With compound interest on a principal of $5,000.00 at a rate of 8% per year compounded 1 time per year over 12 years is $12,590.85.
<h3>Compound interest</h3>
Given Data
Assuming a compounded interest approach
A = P + I where
P (principal) = $5,000.00
I (interest) = $7,590.85
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 8/100
r = 0.08 rate per year,
Then solve the equation for A
A = P(1 + r/n)nt
A = 5,000.00(1 + 0.08/1)(1)(12)
A = 5,000.00(1 + 0.08)(12)
A = $12,590.85
Learn more about compound interest here:
brainly.com/question/24924853
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