Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
<u></u>
Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Answer:
y=mx+c
Step-by-step explanation:
A linear equation means the equation of straight line.
The formula for equation of straight line in slope intercept form is y=mx+c
where, m is the slope of line and c is the y intercept
The formula for equation of straight line in double intercept form is x/a+y/b=1
The formula for equation of straight line in normal form is xcos α + y cos α=p
There are more formulas bur assuming you are asking for the general representation of the straight-line equation, it is y=mx+c.
Answer:
B
Step-by-step explanation:
Parallel lines have the same slope. The slope of the given line is 3/4. Line B has the same slope.
Answer:
D) 6
Step-by-step explanation:
set Q has 16 values which are all even values from 4 to 36
set Z has 11 values that are multiples of 3 from 4 to 36 (6,9,12,15,etc.) however, we have to eliminate the odd ones, leaving the following six:
6, 12, 18, 24, 30, 36