Answer:
The annual payment at the end of each year: $4,572.23
Explanation:
The formular for calculating Present value of Annuity is applied in this case to help us find the equal annual payment.
Applying information in the question, we have the annuity that have:
n= 10 as there are 10 equal annual payments paid at the end of each year during 10 years;
i = 8.5% per annum compounded annually, as stated in the question;
PV = Borrowed amount = $30,000;
C = the equal annual payment.
The formular for PV of Annuity: PV = (C/i) x [ 1- (1+i)^(-n)] <=> C = (PV x i) / [ 1- (1+i)^(-n)]
Thus, C = (30,000 x 8.5%) / [ 1- 1.085^(-10) ] = $4,572.23
You believe that the spread between the September s&p 500 future and the s&p 500 index is too large and will soon corrected. to take advantage of this mispricing, a hedge fund should <u>sell S&P 500 Index futures and buy all the stocks in the S&P 500.</u>
A fund is an investment allocated for a specific purpose. The fund's cash pool is often professionally invested and managed. Some common types of funds are pension funds, insurance funds, endowments, and endowments.
Funds are formed by pooling funds from multiple investors. A fund is a pool of funds available for a specific purpose. A professional manages the money and invests it in securities. Fund managers manage funds and use several strategies to effectively invest their funds.
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The process being employed in the scenario above is called
quality control. This is a system being used in means of maintaining standards
with the use of testing out samples or products in order to check and maintain
the standards that has been implemented.
The Answer Is Option A, Action
Answer:
Explanation:
The Solow Growth Model is a short run growth model of economic growth which shows or illustrates the changes in the level of output in an economy over time, as a result of changes in
- savings rate
- population growth rate
- rate of technological progress.
The diagram attached explains the model.
In the short run, increase in technology will increase the output per worker (looking from the microeconomic perspective) and the aggregate output (looking from the macro perspective) in the economy.
This increase in output is later stabilized in the long run.