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ASHA 777 [7]
3 years ago
11

1. A small-scale businessman deposits money at the beginning of each year into his savings account, depending on the level of th

e business’ returns. He deposits $1000 in the first year, $3000 in the second year, $5000 in the third and $7000 in the fourth year and annual interest rate of 7%. What is the value of the investment at the time of his first deposit?
Business
1 answer:
quester [9]3 years ago
7 0

Answer:

The value of the investment at the time of his first deposit is $1,000.

At the end of the first year, the investment will be worth $1,070.

Explanation:

The value of a deposit investment is determined by the interest rate and time.  Time affects the value of an investment by this small-scale businessman in many ways.  The passage of time increases the value of his investment.  However, the total increase may not be due to the interest rate, but inflation also affects asset's value.  For this businessman to make a gain in the investment, the interest rate must be higher than the inflation rate.  Otherwise, the investment loses money due to the effects of inflation, which reduces the real value of an asset over time.

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Focus groups should be comprised of how many people? Three to five people Six to eight people Eight to 12 people 10 to 12 people
gregori [183]

Answer:

3-5 people

Explanation:

It's called a focus group for a reason. If there were 8-12, or 10-12 people, the others might not be able to focus. But there are people who need others to focus, so 3-5 would be a perfect number per group.

hope it helps! :3

6 0
3 years ago
Projects S and L both have normal cash flows, and the projects have the same risk, hence both are evaluated with the same WACC,
kirill115 [55]

Answer:

E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

6 0
3 years ago
You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The opti
snow_lady [41]

Answer:

$270

Explanation:

Calculation to determine the net profit or loss on this investment

Using this formula

Total profit/Loss =Stock value -Strike price-Option quoted)×100×Call option

Let plug in the formula

Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6

Total profit =$0.45×100×6

Total profit= $270

Therefore the net profit on this investment is $270

4 0
3 years ago
Which do you prefer of the options below? Is there an interest rate at which you switch your preference? If so, what is the rate
elena-s [515]

Answer:

As the first payment occurs on option 7 n interest rate higher enough can make the 50 dollars received first make the difference.

The switch produced at a rate of :

300%

Interest rate below this mark favor option 6

while higher than this favor option 7

Explanation:

Option 6

perpetuity of 100 discounted 1.5 year

\frac{100}{r} (1+r)^{-1.5}

perpetuity of 50 every 3 years discounted 3 years

as the payment are every three years we calcualte an equivalent rate:

(1+r)^{3} -1 =r_e

\frac{50}{(1+r)^{3} -1} (1+r)^{-1.5}

Option 7

perpetuity of 50 discounted 1 year

\frac{50}{r} (1+r)^{-1}

perpetuity of 100 every 2 years discounted 2.5 years

equivalent biannual rate

(1+r)^{2} -1 =r_e

\frac{100}{(1+r)^{2} -1} (1+r)^{-2.5}

having the formulas

we can do it on excel solver to look at which rate the switch produces

5 0
3 years ago
mike is walking down the street minding his own business when he is stopped by a police officer. although no crimes have been re
Feliz [49]

Answer:

The correct answer is a. an illegal search under 4th amendment protections.

Explanation:

The fourth amendment to the United States Constitution protects two fundamental rights: the right to privacy and the right not to suffer an arbitrary invasion.

The investigation is the procedure in which a government official or agent violates a reasonable expectation of privacy. When it interferes with the right of property of a person we face a case of confiscation. The owner must have a reasonable expectation of privacy regarding the seized objects. A person is considered to have been apprehended when law enforcement personnel use physical force to retain them in such a way that, in a similar situation, any reasonable person would feel deprived of their liberty.

7 0
3 years ago
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