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3 years ago

Calculate the FV for the following 3 scenarios. Investment scenario #1:

Business

2 answers:

mote1985 [20]3 years ago

7 0

Answer:

$2191.12

Explanation:

We are asked to find the value of a bond after 10 years, if you invest $1000 in a savings bond that pays 4% interest, compounded semi-annually.

FV=C_0\times (1+r)^n, where,

C_0=\text{Initial amount},

r = Rate of return in decimal form.

n = Number of periods.

Since interest is compounded semi-annually, so 'n' will be 2 times 10 that is 20.

4\%=\frac{4}{100}=0.04

FV=\$1,000\times (1+0.04)^{20}

FV=\$1,000\times (1.04)^{20}

FV=\$1,000\times 2.1911231430334194

FV=\$2191.1231430334194

FV\approx \$2191.12

Therefore, the bond would be $2191.12 worth in 10 years.

kvv77 [185]3 years ago

5 0

Answer:

Explanation:

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timurjin [86]

Answer:

Following are the solution to this question:

Explanation:

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The P2P millennial has a wide pool of friends or associates and has a space of practice and use comparison with one another.

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3 years ago

A furnace repair team services a design capacity of 6 furnaces per day with an effective capacity of 5 furnaces per day. What is

VashaNatasha [74]

Answer:

66.7%

Explanation:

Given that,

Design capacity = 6 furnaces per day

Effective capacity = 5 furnaces per day

Efficiency ratio if it repairs an average of 4 furnaces per day:

= (Actual capacity ÷ Possible capacity) × 100

= (4 per day ÷ 6 per day) × 100

= 0.667 × 100

= 66.7%

Therefore, the efficiency ratio is 66.7 percent.

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3 years ago

Savings for You, a discount retail chain, is highly competitive. When entering a new market, Savings for You often cuts prices s

REY [17]

Answer:

<u>Predatory pricing</u>

Explanation:

A "predator" refers to an animal who survives by "preying" on other animals.

Predatory pricing in a similar sense refers to that form of excessively low pricing which in a way consumes other firms by taking away their share of industry revenues. Such form of pricing is considered illegal and is against healthy competition.

Such pricing eliminates competitors from the market and gradually leads to emergence of a monopoly i.e supremacy of a single firm in the whole industry and thus considered an illegal practice.

In the given case, the retail chain can be alleged to have followed predatory pricing which is substantiated by the fact that it cuts it's prices excessively i.e even below cost , thereby forcing smaller companies to exit the industry.

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3 years ago

According to rational expectations, stock prices are actually... a. the discounted value of all future cash flows associated wit

Stells [14]

Answer:

a. the discounted value of all future cash flows associated with the stock.

Explanation:

Stock prices can be seen as an estimated future value of the security. When investors buy shares they look at the performance of the business and buy shares based on this future analysis.

Also the issuer values the shares based on their future forecast of financial performance. For example when a share is issued for $1,000,000 the business would have estimated performance will justify the share price in the future.

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3 years ago

On December 1, 2018, Shamrock Company received $9,600 from Destiny, Inc. for rent of an office owned by Shamrock Company. The pa

andrey2020 [161]

Answer:

b. credit to Rent Revenue of $3,200

Explanation:

Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.

Amount earned as at December 31

= 1/3 × $9,600

= $3,200

Entries required

Debit Deferred Rent revenue $3,200

Credit Rent Revenue $3,200

Being entries to recognize revenue earned as at December 31

4 0

3 years ago