1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Cloud [144]
3 years ago
10

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

You might be interested in
Economic policies that attempt to benefit the poor by taxing and spending are referred to as ________.
anygoal [31]

Answer:

Fiscal policy

Explanation:

Describes changes to government spending and revenue behavior in an effort to influence the economy. By adjusting its level of spending and tax revenue, the government can affect economic outcomes by either increasing or decreasing economic activity.

3 0
2 years ago
Distinguish between limited and unlimited liability
ehidna [41]

This relates to liability of business owners. When a company has unlimited liability and starts losing money, the owners can be personally liable for losses meaning their home and personal assets could be lost. Limited liability means they can only lose the amount that they invested in the company and none of their personal assets.

5 0
3 years ago
Joshua, a manager, instructed his subordinate, Leona, to mobilize their team and prepare a report on how the office could be mad
Karolina [17]

Answer:

The email message can be read again for further reference by Leona.

Explanation:

The oral communication tends to he an effective way to give a message, however sometimes it can present difficulties. The oral communication can be misunderstood when there are phonetic expressions or physical expressions that might confuse to the person who receives the message.

The email or written communication is a more formal way to give a message, the person who receives the message can read it multiple times avoiding mistakes, furthermore, when there is a written message the person who wrote it selected the word and refine the information making it clear and easy to read.

3 0
3 years ago
When an investment bank ________ securities, it guarantees a price for a corporation's securities and then sells them to the pub
ankoles [38]

When investment banks underwrite securities, they guarantee the value of the company's securities before selling them to the public.

Investment securities are a class of securities (transferable financial assets such as stocks and bonds) that are purchased for the purpose of being held for investment purposes.

When an investment bank and a company reach an agreement to underwrite (also known as a firm commitment), the investment bank purchases new securities at an agreed price and sells the securities generally at a premium to cover all costs. We will resell. They include costs associated with the sale.

There are four main types of securities. Bonds, equities, derivative securities, and hybrid securities that combine bonds and equities.

Learn more about investment bank at

brainly.com/question/25787830

#SPJ4

6 0
2 years ago
Which of the following statements best describes accounting for a partnership?
svetlana [45]

Answer:

B. A partnership may use federal income tax rules to account for transactions in their journals and ledger accounts.

Explanation:

There is a lot of difference in accounting of normal partnership firms and that of non profit organisations.

Simply a partnership firm cannot be formed as a non profit entity.

A partnership can use any federal laws in compliance and do accounting entries in accordance with them.

The partnership equity section only contains partner's capital account as there are no retained earnings section.

Partnership's do not pay dividend, and if it does it is not limited to money.

7 0
3 years ago
Other questions:
  • If an economist argues that everyone gains from trade, what reasoning is most likely underlying her argument?
    15·1 answer
  • 12. What was the most important aspect of the southern economy in the late nineteenth and early twentieth centuries? a. Agricult
    9·1 answer
  • Suppose the total market value of all the final goods and services produced in the country of Rushya was $8 billion in 2008 (mea
    14·1 answer
  • MIS is a business function, like accounting or sales, which moves information about people, products, and processes across the c
    13·1 answer
  • Desktop management__________.a. increases the cost of configuration management over the long termb. requires managers to install
    5·1 answer
  • David borrows $230,000 to buy a house. The mortgage rate is 4.5 percent and the loan period is 25 years. Payments are made month
    6·1 answer
  • For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The o
    11·1 answer
  • Hich pricing strategy involves setting a high price for an exclusive, high-end product?
    13·1 answer
  • the builders of the transcontinental railroad used legal and illegal means to cut costs and finance construction. which phrases
    9·1 answer
  • Budgeting is the process of planning future business activities and expressing them as?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!