Answer:
The sale price per bond today is $ 1,325.20
Explanation:
The price is computed by discounting all future cash flows of the bond to present value using the discounting factor 1/(1+r)^N where r is the yield effective interest rate on the bond of 4.5% and N the relevant year of cash flow as shown in the attached spreadsheet.
Answer: $3865.8
Explanation:
The formula to find the simple interest is given by :-
, where P is the initial amount deposited , r is the rate of interest in decimal and t is the time period in years.
Given : P= $1700 ; r= 9.8%=0.098 ; t=13 years
Then , the simple interest earned in 13 years will be :-
Now, the combined amount = P+I =$1700+$2165.8= $3865.8
Hence, the credit union would owe Heather $3865.8 in 13 years.
Answer:
a. by finding the percentage increase in net profits over time
Explanation:
The primary reason why companies engage in business is to make profit. When profits are made, that means there will be opportunity for expansion. A company that does not make profit will not expand hence the possibility of its survival will not exist.
Companies make profit to finance business operation, purchase critical assets etc. Companies measure their profit growth to know how well their profit increase overtime and it is measured by finding the percentage increase in net profits overtime.
Answer:
True
Explanation:
<em>Return on Investment (ROI) is the proportion of operating assets that an investment center earned as as net operating income. </em>
<em>ROI is measure of the returned earned by a division relative to the amount invested in the assets used to generate the return.
</em>
It is calculated as follows
ROI = operating income/operating assets × 100
To evaluate a division, the division's ROI is compared to the budgeted ROI of the company. An actual ROI that exceeds the budgeted is considered a good performance and vice versa