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4 years ago

If the market rate of interest is 6 percent, what is the present discounted value of $1,000 that will be paid in

1 answer:

6 0

The formula for percent discount value after n years at the rate r is given by
pdv=fv/(1+r)^n
where fv is the fixed value
here only fixed value is given to us so we will calculate the discounted value for coming 10 years
after
year 1=943.4
2=890
3=839.62
4=739.09
5=747.26
6=704.96
7=665.06
8=627.41
9=591.90
10=558.39

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If the optimal forecast of the return on a security exceeds the equilibrium return, then _______.A. the market is inefficient. B

Leviafan [203]

Answer:

D. only A and B of the above are true.

A. the market is inefficient.
B. an unexploited profit opportunity exists.

Explanation:

In simple words, this question is asking why the optimal return or best possible return of an investment is actually higher than the real market return. Generally this can be explained by opportunity costs and profits, or maybe even market inefficiencies caused by external factors (e.g. taxes).

In economics, efficient companies operating in competitive markets will always have 0 economic profit in the long run, that means that the company has maximized its accounting profits and there is no other alternative investment that can provide the same returns.

The same concept applies here, when you maximize your potential returns, it means that there is no other security or investment should yield the same returns. If your returns are actually, it only means that you are missing an opportunity profit (by investing in some other security) or some type of market inefficiency or external factor has decreased the actual return of your investment.

4 0

3 years ago

Which action should a job seeker ideally take by the end of an interview?

spayn [35]

Thank the interviewer and wait for a. Call back

7 0

3 years ago

Read 2 more answers

Even in these times of social media and digital content some of the old ways of promotion can still be effective. Identify two s

inna [77]

Answer:

Newspaper Advertising

STRENGHTS:

I. Wide reach/coverages

II. Cheap and easily affordable

WEAKNESS:

I. Can easily be destroyed

II. Iliterates can not be able to read its contents.

TELEVISION

STRENGHTS

I. Wider reach/coverage

II. Very attractive and understandable.

WEAKNESSES

I. Very expensive to maintain

II. May not be available to the poor.

DIRECT MAIL

STRENGHTS

I. Focused audience

II. High response rate

WEAKNESSES

I. Too expensive to maintain

II. May not have a wide reach.

RADIO

STRENGHTS

I. Wider reach/coverage

II. Easily accessible and affordable

WEAKNESSES

I. Expensive to maintain especially to the advertising organisation

II. Signal/connection issues.

MAGAZINE

STRENGHTS

I. attractive with colorful eye-catching pictures

II. Can easily understood by users.

WEAKNESSES

I. Magazines are usually very expensive than newspapers

II. Can easily be destroyed.

OUTDOOR DISPLAY

STRENGHTS

I. Very attractive with eye-catching pictures

II. Easily accessible with wider reach.

WEAKNESSES

I. Very expensive to maintain

II. Not focused/ not targeted at audience.

III. Waste coverages

Explanation:

Advertisement agencies are utilising several means of communication and marketing to their customers as described above those means has been fully utilized.

Newspaper Advertising is very affordable and can be easily accessible to the local population while it is easier to destroy or misplaced and also it can not be utilised by illustrates who can not read.

Television advertising is one of the most attractive as it contains pictures that can be attractive to its audience and also it has a wide coverage, it also has certain weaknesses which includes the cost of maintaining etc.

Outdoor advertising is also very attractive to the audience and it has a wide coverage as everyone making use of road can be easily reached. Some of the weaknesses of outdoor advertising includes the cost of sustaining it and also waste coverages as many audience may not need or desire the product being displayed.

8 0

3 years ago

For something to have value, it must _____________.

AnnyKZ [126]

Answer: have utility..

Explanation: in order for anything to have worth you must br able to use it and it must work properly

7 0

3 years ago

Joey realizes that he has charged too much on his credit card and has racked up $5,100 in debt. If he can pay $125 each month an

N76 [4]

Answer:

It will take Joey 63.59 months to pay off the debt.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or debt amount = $5,100

P = Monthly payment = $125

r = annual percentage rate (APR) / 12 = 18% / 12 = 0.18 / 12 = 0.015

n = number of months it will take Joey to pay off the debt = ?

Substitute the values into equation (1) and solve for n, we have:

5100 = 125 * ((1 - (1 / (1 + 0.015))^n) / 0.015)

5100 / 125 = (1 - (1 / 1.015)^n) / 0.015

40.80 * 0.015 = 1 - 0.985221674876847^n

0.985221674876847^n = 1 - 0.612

0.985221674876847^n = 0.388

loglinearize both sides, we have:

nlog0.985221674876847 = log0.388

n = log0.388 / log0.985221674876847

n = -0.411168274405793 / -0.00646604224923186

n = 63.59

Therefore, it will take Joey 63.59 months to pay off the debt.

8 0

3 years ago