1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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)
You might be interested in
Fleesum recently began using cross-functional teams. Dee wants to make sure the teams collaborate effectively, but also wants to
Mariulka [41]

Answer:

use a skill-based pay plan for the teams.

Explanation:

Based on this scenario it can be said that the best method for Dee to use would be a skill-based pay plan for the teams. A Skill-based pay (SBP) is a unique compensation method that is designed to reward individual employees with additional pay in exchange for formal certification of the employee's mastery of skills, knowledge, and/or competencies. This will promote individual initiative without suppressing a cooperative work environment.

8 0
3 years ago
ABC Corporation, after many profitable years, declares a one-time special cash dividend of $10.00 per share. After the announcem
Crank

Answer:

1 ABC Jan 100 Call

Explanation:

Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.

For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.

The new strike price will be

= 110 - 10 cash dividend

= 100. It also means that the number of shares covered by the contract does not change.

4 0
3 years ago
Is a business cycle a type of recession?<br> yes or no?
Kruka [31]

Answer:

The Answer is gonna be Yes

8 0
2 years ago
What suggestion presented in your textbook for using supporting materials is used in the following speech excerpt?
zimovet [89]

<u>Answer: </u>Option A

<u>Explanation:</u>

Statistics is the based on the study of collection of data and presentation of data in an organized way. Statistics in the speech is done through collecting facts on research. By bringing in the statistics into the speech it has the context and the credibility of the speech can be done effectively.

Statistics can prove the realism in the speech and it has emotional impact on the audience. Statistical figure is 100 million hamburger which is 3 million miles that is fifteen times as far as moon these create a memory for the audience and they remember it for a long time.

7 0
3 years ago
Proprietary funds are required to present four basic financial statements—a Statement of Net Position, a Statement of Changes in
SpyIntel [72]

Answer: False

Explanation:

The Basic Financial Statements for a Proprietary Fund includes:

1. Statement of net position

2. Statement of revenues, expenses

3. Statement of changes in fund net position

4 0
3 years ago
Other questions:
  • Many depressants, including alcohol, reduce your __________.
    14·1 answer
  • In business, a message written to right a wrong is called a claim. Straightforward claims are those where the receiver is expect
    9·1 answer
  • How does a Fire Prevention Plan benefit your workplace? Select the 2 answer options that apply. It’s less likely that a fire wil
    15·2 answers
  • If sales units exceeds the break-even point in units, the firm will experience
    12·1 answer
  • Cyra is a musician who is contracted to perform for Vanta Blue, a local pub. Vanta Blue pays her an advance as part of the contr
    9·1 answer
  • Last year, Barnard Company incurred the following costs: direct materials, $50,000; direct labor, $20,000; manufacturing overhea
    13·1 answer
  • Which of these is an acceptable less hazardous method of cleaning than solvents?
    12·1 answer
  • Say that the hourly cost to employers per German industrial worker was $44. The hourly cost to employers per U.S. industrial wor
    14·1 answer
  • Murphy had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends.
    13·1 answer
  • Adjusting entries are made __________ of the accounting period to distribute revenue and expenses to the period in which they ar
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!