Answer:
Fisher effect
Explanation:
Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.
This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.
So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.
Answer:
13.00 percent
Explanation:
IRR is the rate at which the NPV equal to zero. Using the CF key on a financial calculator, use the following inputs to solve for Internal Rate of Return (IRR) ;
Initial investment; CF0 = -127,900
Yr 1 cashflow; C01 = 43,800
Yr 2 cashflow; C02 = 40,200
Yr 3 cashflow; C03 = 46,200
Yr 4 cashflow; C04 = 41,800
then compute the IRR by keying in IRR, CPT = 13.00%
Answer:
$9,300.82
Explanation:
The formula for calculating present value:
P = FV (1 + r)^-n
FV = Future value = $1.25 million
P = Present value
R = interest rate = 6.4 percent.
N = number of years = 79
1.25 (1.064)^-79 = $9,300.82
I hope my answer helps you
Answer:
a gain for 2,670
Explanation:
We first calculate the difference betwene the prices
future price - expiration date = result per ton
1,696 - 1,607 = 89
We sale Cocoa in the future for 1,696
the price at expiration was 1,607
We sale at a higher price than market, this is a gain.
We have profits for $89 per ton
Each future contract has 10 tons and we sold 3 contracts
The total tons would be 3 x 10 = 30 tons
Now we multiply the gain per ton by the total tons sold
89 x 30 = 2,670
This will be the gain on future contract.
