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3 years ago

Please assist with the answer

Business

1 answer:

otez555 [7]3 years ago

5 0

Answer: $1203.83

Explanation: Continuous compounding is a great thing if you are earning on an investment. It says that the principal is constantly earning interest and the interest on interest is also compounding continuously. The formula for the continuous compounding is:

$A = P*e^(r*t)$

where, A = $2600

e = the mathematical constant e (2.7128)

r = 11%

n = 7 years

By inputting the above variables in the formula,

$$2600 = P * e^(0.11*7)$

$$2600 = P * e^(0.77)$

$2600 = P * 2.159766

P = $1203.834

Therefore, the amount to be invested today will be $1203.834

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3 years ago

Last year Carson Industries issued a 10-year, 12% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

Nataly [62]

Answer:

YTM = 8.93%

YTC = 8.47%

Explanation:

$P = \frac{C}{2} \times\frac{1-(1+YTC/2)^{-2t} }{YTC/2} + \frac{CP}{(1+YTC/2)^{2t}}$

The first part is the present value of the coupon payment until the bond is called.

The second is the present value of the called amount

P = market price value = 1,200

C = annual coupon payment = 1,000 x 12% 120

C/2 = 60

CP = called value = 1,060

t = time = 6 years

$P = 60 \times\frac{1-(1+YTC/2)^{-2\times 6} }{YTC/2} + \frac{1,060}{(1+YTC/2)^{2\times 6}}$

Using Financial calculator we get the YTC

8.467835879%

$P = 60 \times\frac{1-(1+YTM/2)^{-2\times 10} }{YTM/2} + \frac{1,000}{(1+YTM/2)^{2\times 10}}$

The first part is the present value of the coupon payment until manurity

The second is the present value of the redeem value at maturity

P = market price value = 1,200

C = coupon payment = 1,000 x 12%/2 = 60

C/2 = 60

F = face value = 1,060

t = time = 10 years

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8.9337714%

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3 years ago

For most people, the purchase of a Ford automobile would employ which type of consumer decision making?

Nostrana [21]

Answer:

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Explanation:

Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.

So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.

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3 years ago

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Setler [38]

Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

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3 years ago

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