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Troyanec [42]
3 years ago
7

Your father paid $10,000 (cf at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then

an additional lump sum payment of $10,000 at the end of the 5th year. what is the expected rate of return on this investment?
Business
1 answer:
natta225 [31]3 years ago
7 0

From the problem statement it is clear that here we need to find out simple interest rate. 
One do not get interest on any investment made at the end of tenure.  
Putting this mathematically:
 Let amount at the end of 5th year as A 
Simple Interest for 5 years, SI = 750 *5
 SI = 3750
 Hence A = 10000 +3750
 A= 13750
 Let rate of return = R
 Tenure t = 5
 But,
  A = P(1 + R*t/100)
 13750 = 10000( 1+ R*5/100)
 13750 = 10000 + 50000R/100
 3750 = 500R
 R = 3750/500
 R = 7.5 %
 
 Hence rate of return is 7.5% per annum (answer)
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Answer:

c) $30,600

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Bank statement balance = $36,000

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Deposit in transit as at month end = $4,000

Erroneous check charged = $600

Correct balance in the bank account = $36,000 - $10,000 + $4,000 + $600

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The right option is c) $30,600

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Answer:

A) Year 1 cost of goods sold

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Explanation:

A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.  

D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.  

B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.

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The Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

<h3>What is a free trade?</h3>

This refers to an international business policies that occurs when goods and services can be bought and sold between countries without tariffs, quotas or other restrictions being applied.

This policy tends to increase the volume of international trade among member countries and also allow them to increase their specialization in their respective comparative advantages.

Hence, in the graph given, the Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

Read more about free trade

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