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Alecsey [184]
4 years ago
5

Compounding refers to the growth process that turns $1 today into a greater value several periods in the future.

Business
1 answer:
Marizza181 [45]4 years ago
5 0
The above statement is TRUE. Compounding is the process by which the worth of an investment increases because the earnings on an investment, which is made up of the capital gains and interest earn interests as time passes. 
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Explain in detail the Modigliani (life‐cycle) theory of consumption. Contrast it with the Keynesian theory of consumption.
nalin [4]

Answer:

y

Explanation:

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6 0
3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
Alecsey [184]

Answer:

€928.46

Explanation:

Since it was hinted that bonds issued outside of  the United States pay coupons annually, it is expected that the bonds issued in Germany pay annual coupons, and its price is computed below using the bond price formula, excel PV function, and financial calculator:

Bond price=face value/(1+r)^n+annual coupon*(1-(1+r)^-n/r

face value=€1,000

r=yield to maturity=8.7%

n=number of annual coupons in 10 years=10

annual coupon=face value*coupon rate=€1,000*7.6%=€76

bond price=1000/(1+8.7%)^10+76*(1-(1+8.7%)^-10/8.7%

bond price=1000/(1.087)^10+76*(1-(1.087)^-10/0.087

bond price=1000/2.30300797+76*(1-0.43421474)/0.087

bond price=1000/2.30300797+76*0.56578526/0.087

bond price= 434.21+494.25= €928.46

Excel PV function:

=-pv(rate,nper,pmt,fv)

=-pv(8.7%,10,76,1000)

pv=€928.46

Financial calculator:

N=10

PMT=76

I/Y=8.7

FV=1000

CPT PV=€928.46

4 0
3 years ago
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 6.5 kilograms of the raw material Jurislo
babymother [125]

Assuming the company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurislon to be purchased in August is:$3,663,220.

<h3>Total cost</h3>

Using this formula

Total cost=(Desired ending inventory+ Required for production-Ending inventory)×Rate per kilogram

Total cost=[(21,700×6.5×20%)+(23,000×6.5)-11,200]×$22 per kilogram

Total cost=(28,210+149,500-11,200)×$22 per kilogram

Total cost=166,510×$22 per kilogram

Total cost=$3,663,220

Inconclusion the total cost of Jurislon to be purchased in August is:$3,663,220.

Learn more about Total cost here:brainly.com/question/25109150

4 0
2 years ago
A frozen foods company changes an ingredient to meet a new government standard. This is an example of
sleet_krkn [62]

Answer: Following a federal regulation.

Explanation:

Following a federal regulation will help the frozen food company to avoid government sanctions or fines by following regulatory requirement. It is also important because it helps to protect the health, safety and wellbeing of the public.

Federal regulations reduces environmental pollution and curbs excesses in any industry.

4 0
3 years ago
The circular flow model shows Group of answer choices the role of the government in building the market system the roles played
Jlenok [28]

Answer:

B

Explanation:

circular flow diagram shows the relationship between the firm and households.

6 0
2 years ago
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