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
I am Lyosha [343]
3 years ago
5

Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.

A bottle of a rare Burgundy, Domaine de la Romanée-Conti 2011, whose price rises from $255 to $275 between 2013 and 2014. A £10,000 deposit in a London bank in a year when the interest rate on pounds is 10 percent and the $/£ exchange rate moves from $1.50 per pound to $1.38 per pound.
Business
1 answer:
Gennadij [26K]3 years ago
7 0

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

You might be interested in
_____ is the personality of the brand through messaging.
Artemon [7]

Answer:

hi. to me, the option that makes the most sense would be (A.) Brand Voice. I'm not 100% sure, but I hope this helps!

7 0
3 years ago
On January 1, 2018, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos
Licemer1 [7]

Answer:

Pension Expense = EBE = $593440 for income statement

Explanation:

The opening balance of the Plan asset is made by the 40000 from 2018 plus interest of 32000 and the new 400000 made this year. Why include it? Because an opening balance are the funds in an account at the beginning of the year either from last year or are from current year but should be the first entry in the books of the current year.

                                                                 DBO                plan asset       EBE

opening balance                                   (600000)            832000             -

interest                                                   ( 60000)              66560            6560

current year's service cost                    (600000)                               (600000)

                                                            (  1260000 )            898560      <u> 593440</u>

 balance sheet liability = 361440

5 0
3 years ago
Read 2 more answers
A financial adviser manages an equity portfolio for an endowment fund, which has an 8.2% return objective. The adviser makes a s
MArishka [77]

Answer:

The endowment fund is not satisfied with the advisor's performance

Explanation:

Judging from a nominal interest rate perspective where return expected of an investment comprises of real rate of return and an extra return which is a compensation for inflation rate in the economy,the endowment fund is not satisfied with performance of the advisor.

The satisfactory rate of return that would be expected of the advisor is computed below:

nominal interest rate=real rate+inflation rate

real rate is 8.2%

inflation rate is 2.9%

nominal interest rate=8.2%+2.9%

                                  =11.10%

3 0
2 years ago
A library shelving system has a fi rst cost of $20,000 and a useful life of 10 years. The annual maintenance is expected to be $
Debora [2.8K]

Answer:

The benefit cost ratio is 1.564

Explanation:

The benefit-cost ratio is the ratio of the present value of benefits to the present value of costs. It is thus calculated as follows.

Benefit-cost ratio = Present value of benefits / Present value of costs

Present value of costs = $20,000 + $2,500 (P/A, 10%, 10 years)

                                     = $20,000 + $15,361

                                     = $35,361

Present value of benefits = $9,000 (P/A, 10%, 10 years)

                                          = $9,000 x 6.145

                                          = $55,305

Benefit-cost ratio = $55,305 / $35,361

                             = 1.564

3 0
2 years ago
You are the owner of a small sandwich shop. a buyer may offer one of several payment methods: cash, a check drawn on a bank, a c
Anon25 [30]
A check it takes less time and has no fee and the just draw from my account
6 0
2 years ago
Other questions:
  • thew recently purchased a new laptop for $1,500. He subsequently saw an advertisement for what appeared to be a similar model be
    8·1 answer
  • Faisal and Torie each want to make an investment, but they have different needs. Based on the information, which investment opti
    15·1 answer
  • If in response to a spreading recession, the President calls for an increase in investment spending by businesses, which of the
    13·1 answer
  • Vocational rehabilitation counselors work with people from across the age spectrum, from infants to older adults.
    6·1 answer
  • According to which ethical rule can a defense attorney refuse to share the defendant’s information with others?
    13·1 answer
  • Proprietorships are by far the most common type of business, yet they account for a very small percentage of all sales compared
    7·1 answer
  • What is the current estimate of the number of africans forcibly relocated from africa to the new world?
    11·2 answers
  • During 2017, the Gateway City government recorded a $15,000 transfer from the General Fund to an internal service fund; a $25,00
    13·1 answer
  • When evaluating special offer decisions, management should consider: (Check all that apply.) Multiple select question. historica
    14·1 answer
  • Question 4
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!