Answer:
$20.84
Step-by-step explanation:
div 1 = $0.50
div 2 = $0.50
div 3 = $0.50 x 1.05 = $0.525
div 4 = $0.525 x 1.05 = $0.55125
years 5 and beyond we need to use the growing perpetuity formula:
stock price = [div 4 x (1 + g)] / (r - g) = ($0.55125 x 1.1) / (12% - 10%) = $30.32
now to determine the current value of the stocks we must calculate the present value of the future dividends and stock price:
stock price = $0.50/1.12 + $0.50/1.12² + $0.525/1.12³ + $0.55125/1.12⁴ + $30.32/1.12⁴ = $0.45 + $0.40 + $0.37 + $0.35 + $19.27 = $20.84
Answer:
Step-by-step explanation:
The explicit formula for an arithmetic sequence is given by :
...(1)
We need to find the 200th term of the sequence.
Put n = 200 in equation (1)
So, the 200th term of the sequence is 418.
N-5 is greater than or equal to -28
Answer:
x=1.5
Step-by-step explanation:
Answer:
correct option is C. $399,060
Step-by-step explanation:
given data
balloon mortgage = 7/23
initial payments = $915
time = 30 year
new payments = $895
solution
we know here that 7/23 is that loan has fixed rate = first 7 years.
so that initial payments for 7 years is here
initial payment = 7 × 12 × 915
initial payment = $76860
and
payments for 30 years when refinance her balloon
payments for 30 year = 30 × 12 × 895
payments for 30 year = $322200
so total financed cost paid for her house is
total financed cost = $76860 + $322200
total financed cost = $399,060
so correct option is C. $399,060