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3 years ago

You have just purchased a four-month, $630,000 negotiable CD, which will pay a 4.5 percent annual interest rate.

Business

1 answer:

erma4kov [3.2K]3 years ago

7 0

Answer:

A. cv = $628998.51

B. cv = $638180.86

Explanation:

Fv = iv * (1 + r)^n

Where fv = final value

Iv = initial value. = 630,000

r = rate = 4.5%

n = time of maturity = 4/12 = 0.3333

So therefore:

Fv = 630000(1 +.045)^0.3333

Fv = $639310.75

a. If rate is reduced to 5%

Current market value = c.f.

Since rise or drop in rate would affect the new value of product if you are to sell

So:

639310.75 = cv( 1 + r )^0.3333

cv = 639310.75 / (1.05)^0.3333

cv = 628998.51

b. If rate reduces to 4.25%

Solving it the same way as (a)

639310.75 = cv* ( 1 + 0.0425 ) ^0.3333

cv = $638180.86

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Which continent has the highest concentration of trade (i.e., trade among countries within a particular region)?

Vesna [10]

Answer:

Europe

Explanation:

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4 years ago

Suppose your expenses for this term are as follows: tuition: $28,000, room and board: $9,000, books and other educational su

astraxan [27]

Answer: Option C is correct

Explanation:

Opportunity cost or loss is the contribution lost due to the leaving one opportunity to exploit the other one. So in this case, the opportunity that I am going to exploit is going to college this term. So according to relevant costing the relevant cost is:

(a) Cash flow in nature.

(b) Future contract binding (future related)

To find whether the cost is incremental cost or not we can find through the following method.

Step 1: Find the cash flow that is arising due to the decision?

Step 2: Find the cash flow arising if we don't take the decision?

Step 3: The difference of step 1 and 2 is differential or incremental cost.

All the inflows and outflows are cash flow in nature and future related. The only thing we have to find is that whether or not the cost is incremental or not.

For this Term:

Step 1 Step 2 Step 3

Take Decision If we Don't Incremental

Salary loss (42-16) (26,000) - (26,000)

Tuition cost (28,000) - (28,000)

Room and Board (9,000) - (9,000)

Books and Edc. Supplies (2,500) - (2,500)

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Kindly also review the following question for you better understanding

brainly.com/question/14423321

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3 years ago

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Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day inve

Alex_Xolod [135]

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Using the interest rate parity formula :

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