Answer:
The above pic might help you :)
Answer:
Compound interest will lead to a larger sum of money than a comparable simple interest payment.
Explanation:
The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.
To find the future value, we use the compound interest formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
Mathematically, simple interest is calculated using this formula;
Where;
S.I is simple interest.
P is the principal.
R is the interest rate.
T is the time.
If you over pay or if you happen to do something and the IRS give you something but it is not normal for the IRS to give
you money
Answer:
1) Expected return is 12.12%
2) Portfolio beta is 1.2932
Explanation:
1)
The expected return can be calculated by multiplying the return in a particular state of economy by the probability of that state occuring.
The expected return = (0.32 * -0.11) + 0.68 * 0.23
Expected return = 0.1212 or 12.12%
b)
The portfolio beta is the the systematic riskiness of the portfolio that is unavoidable. The portfolio beta is the weighted average of the individual stock betas that form up the portfolio.
Thus the portfolio beta will be,
Portfolio beta = 0.33 * 1.02 + 0.2 * 1.08 + 0.37 * 1.48 + 0.1 * 1.93
Portfolio beta = 1.2932
Answer:
Net income is overstated by $28,000.
Explanation:
As the company forget to make the adjustment entry it didn't recognize any expense for the expired insurance.
From September to December 31th 4 month of insurance has expired:
42,000 x 4 month/6 months = 28,000 insurance expense
as the expense weren't post the income statement is overstated along with the assets of the company as it doesn't have a prepaid amount for 42,000 but for 14,000
