Answer:
It will be between $1.00 and $ 1,20
Explanation:
Solution
Given:
From the given question, the price of a flax seed in west Virginia is presently at $1.00
From the law of one price states that since the price of a pound of flax seed is $1.20 in Kentucky,
Then,
The price of a flax seed pound will be between 1.20 and 1.00
Therefore, the price of the flax seed in Kentucky as compared to that of west Virginia will be placed in between prices of $1.20 and $1.00 after the supply by sellers in both market has been adjusted or raised.
Answer:
PV= $17,365,776.86
Explanation:
Giving the following information:
Cf= 2,200,000
Number of years= 20
Discount rate= 12%
Additional lump sum= 9,000,000
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000
FV= $167,515,373.4
Now, the present value:
PV= FV/(1+i)^n
PV= 167,515,373.4/1.12^20
PV= $17,365,776.86
Nazerhy deposits $8,000 in a certificate of deposit. the annual interest rate is 6%, and the interest will be compounded quarterly. The certificate worth 10 years is $14,555.17.
<h3>What do you mean by deposit?</h3>
- A deposit is the act of giving money (or money equivalents) to an organization, most frequently a bank or other financial institution.
- The deposit is a credit for the party that made it (individually or as a group), and it can be refunded (withdrawn) in line with the conditions set forth at the time of deposit, transferred to another party, or applied to a future purchase.
- The primary source of funding for banks typically deposits.
<h3>What is the interest rate?</h3>
- The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum).
- The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
Learn more about interest rate here:
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