All categories

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

You might be interested in

You borrow $210,000 to purchase a home. the terms of the loan call for monthly payments over 30 years at a mortgage rate of 4.50

Dmitry_Shevchenko [17]

First step, find the monthly payments.
Borrowed amount, P = 210000
Monthly interest, i = 0.045/12
Number of periods, n = 30*12=360

Monthly payment
$A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}$
$=\frac{210000(0.045/12*(1+0.045/12)^360)}{(1+0.045/12)^360-1}$
$=1064.0392$ [to the 1/100 of a cent]

2. Calculate interest accumulated over 60 months
$I=210000((1+0.045/12)^{60}-1)$
$=52877.12$

3. Calculate value of payments
$F=\frac{A((1+i)^n-1)}{i}$
$=\frac{1064.039150634359((1+0.045/12)^{60}-1)}{0.045/12}$
$=71445.50$ to the nearest cent

4. Calculate percentage of interest paid
A. as a fraction of future values
Percentage of interest
=52877.12/71445.50
=74.01%
As a fraction of total amounts paid
Percentage of interest
=52877.12/(60*1064.0392)
=52877.12/63842.35
=82.82%

6 0

3 years ago

You are bullish on Telecom stock. The current market price is $80 per share, and you have $10,000 of your own to invest. You bor

drek231 [11]

Answer:

return on equity = 10 %

Explanation:

given data

current market price = $80 per share

own invest = $10,000

borrow additional = $10,000

interest rate = 8% per year

invest in stock = $20,000

to find out

rate of return

solution

we know here total investment is 80 × 250 shares = $20,000

and

stock price rise 9 % that is

stock price = 80 × ( 1 + 9%)

stock price = $87.2

and after 1 year investment value will be = 250 × 87.2

after 1 year investment value = $21800

payment to broker will be

payment to broker = borrow fund + interest

payment to broker = $10000 × ( 1+ 8% )

payment to broker = $10800

so remaining after payment to broker is = $21800 - $10800 = $11000

return on equity is here

return on equity = $\frac{11000-10000}{10000}$

return on equity = 10 %

5 0

3 years ago

Suppose in 1992, the average price level in Pacifica was 100, and that in Atlantica it was also 100. In the foreign exchange mar

wolverine [178]

Answer:

a. 1 Pound/1.29 or 0.78 Pound/Mark

b. Overvalued

Explanation:

a. What should the pound-mark exchange rate be in 2012?

Ratio of Pacifica pound to Atlantica mark in 2012 = 360/280 = 1.29

Or,

Ratio of Atlantica mark to Pacifica pound in 2012 = 280/360 = 0.78

Therefore, according to the relative purchasing power parity (PPP) theory, one Pacifica pound should equal to 1.29 Atlantica mark, i.e. 1 Pound/1.29 Mark.

This can also be stated differently that 1 Atlantica mark should equal to 0.78 Pacifica pound, i.e. 0.78 Pound/Mark.

b. If the actual pound per mark exchange rate is 0.5 pound/mark in 2012, is the mark overvalued or undervalued relative to its PPP value

Since the PPP pound per mark exchange rate value estimated in a above is 0.78 Pound/ Mark is higher than the actual pound per mark exchange rate of 0.5 pound/mark in 2012, mark is therefore overvalued.

8 0

3 years ago

when an organization produces only a single product and attempts to sell it to two or more market segments, it avoids which cost

weqwewe [10]

When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids the extra costs of developing and producing additional versions of the product.

For better understanding, lets explain the term

Market segmentation is simply known as the act of gathering or aggregating known buyers into groups that have common needs and will respond almost the same to a marketing action.
Organization that makes only a single product or service do try to avoids any extra costs that may arise because they want to focus on just one thing

From the above, we can therefore say that the answer When an organization produces only a single product or service and attempts to sell it to two or more market segments. It avoids tahe extra costs of developing and producing additional versions of the product.

Learn more from:

brainly.com/question/14950217

3 0

3 years ago

When a competitive market is in equilibrium, what is the economically efficient level of output? A. any output level where mar

Anestetic [448]

Answer:

The correct answer is C. the output level where marginal cost is equal to marginal benefit .

Explanation:

Competitive equilibrium Traditional concept of economic equilibrium used for the analysis of goods markets with flexible prices and many agents, which usually serve as a benchmark for efficiency in economic analysis. Crucially, it depends on the assumption of a context in which each agent makes decisions about such a small amount compared to the total amount traded in the market that their individual transactions have no influence on prices.

It consists of a price system and an allocation of the production and consumption of the economy among the various agents, such that, given the prices, each agent maximizing its objective function (benefits, preferences) subject to restrictions (technological, of resources) plans to trade its share in the proposed allocation, at prices that make all exchanges compatible with each other by balancing the markets, that is, matching the aggregate supply with the demand aggregate of each of the goods and services traded.

6 0

3 years ago