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Mars2501 [29]
3 years ago
11

Suppose you found a CD that pays 4.9% interest compounded monthly for 4 years. If you deposit $10,000 now, how much will you hav

e in the account in 4 years? (Round to the nearest cent.)
Business
1 answer:
Katyanochek1 [597]3 years ago
4 0

Answer:

=$11,580.00

Explanation:

The CD pays 4.9 percent compounded monthly for four years.

In one year, there will be 12 occasions of compounding; after four years, there would be 12 x 4 = 36 compounds.

The interest rate per year is 4.9 percent; monthly interest will be 4.9 /12, which is 0.4083 percent.

The amount in four years is the same as the future value after four years.

=FV = PV (1+r)n

Pv =$10,000

r=0.4083 %

N =36

Fv = 10,000(1+0.4083/100)36

=10,000(1+0.004083)36

=$10000 x 1.1579932

=$11,579. 932

=$11,580.00

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Morrison and Greene have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Greene is
Gekata [30.6K]

Answer:

1) net income = $115,000

a) Morrison receives $57,500

Greene receives $57,500

b) Morrison receives $86,250

Greene receives $28,750

c) Morrison receives $38,333

Greene receives $76,667

d) Morrison receives ($150,000 x 6%) + $51,500 = $60,500

Greene receives ($50,000 x 6%) + $51,500 = $54,500

e) Morrison receives $3,750 + $40,000 = $43,750

Greene receives $1,250 + $70,000 = $71,250

f) Morrison receives $3,750 + $40,000 = $43,750

Greene receives $1,250 + $70,000 = $71,250

2) net income = $200,000

a) Morrison receives $100,000

Greene receives $100,000

b) Morrison receives $150,000

Greene receives $50,000

c) Morrison receives $66,667

Greene receives $133,333

d) Morrison receives $9,000 + $94,000 = $101,000

Greene receives $3,000 + $94,000 = $97,000

e) Morrison receives $9,000 + $40,000 + $39,000 = $88,000

Greene receives $3,000 + $70,000 + $39,000 = $112,000

f) Morrison receives $9,000 + $40,000 + $30,000 = $79,000

Greene receives $3,000 + $70,000 + $18,000 + $30,000 = $121,000

8 0
3 years ago
What is the difference between classical economics and behavioral economics?
Nostrana [21]

3. Classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.

A major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, Behavioral economics assumes that people are irrational players.

7 0
3 years ago
A stock with a beta of 0.8 has an expected rate of return of 12%. If the market return this year turns out to be 5 percentage po
Sunny_sXe [5.5K]

Answer:

The correct answer is:  The expected rate of return for the stock would be around 7%.

Explanation:

The Beta coefficient is a numeral measure that portraits the volatility of a stock compared to the overall market performance. If a stock's beta is closed to the numerical value one (1) it implies it is highly correlated to the price movement of the overall market.

In that case, if a stock's beta is 0.8 it implies it follows the market price movements. If the stock expected rate return is 12% but the market return turns out to be 5% points below expectations, it means the stock's return would end up being around 7%.

8 0
3 years ago
. The current spot exchange rate is $1.50/€ and the three-month forward rate is $1.55/€. Based on your analysis of the exchange
Andre45 [30]

Answer:

B) Buy €1,000,000 forward for $1.55/€.

Explanation:

To calculate the expected profit consider the following data and formula:

Amount in actions: 1.000.000

Spot exchange rate: 1.62

Three month forward calculation: 1.55

Expected profit=1,000, 000 *( 1.62 - 1.55) = 70,000.00.

6 0
3 years ago
SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year,
velikii [3]

Answer:

a.

March 9

Dr Treasury Stock - Common stock            456,000

Cr Cash                                                         456,000

( to record the reacquired of 12,000 common stock at $38 each)

June 9

Dr Cash                                                     311,600

Cr Treasury stock                                     288,800

Cr Paid-in capital                                       22,800

( to record the sell of 7,600 reacquired common stocks at $41 each)

November 13

Dr Cash                                                     118,900

Cr Treasury stock                                    110,200

Cr Paid-in capital                                       8,700

( to record the sell of 2,900 reacquired common stocks at $41 each)

b.

The balance of paid-in capital from sales of treasury stock = 8,700 + 22,800 = 31,500 Credit

Explanation:

Calculation notes:

a.

March 9: The cash spent on reacquired common stock = 12,000 x 38 = $456,000

June 9: Cash receipt on sell of treasury common stock = 7,600 x 41 = 311,600; which will Credited $288,800 into Treasury stock account ( 38 x 7,600) and Credited $22,800 ( (41-38) x 7,600) into Paid-in capital account.

Nov 13 : Cash receipt on sell of treasury common stock = 2,900 x 41 = 118,900; which will Credited $110,200 into Treasury stock account ( 38 x 2,900) and Credited $8,700 ( (41-38) x 2,900) into Paid-in capital account.

b. Calculation is shown above

3 0
3 years ago
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