Answer: a) $66,388.86
the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
Explanation:
Given that;
Annuity = $150
r = 10%
Earl is 25years now
Earl plans to withdraw the money when he is 65
which mean Period N = ( 65 - 25 ) = 40
To find the future value, we use use the express
Future value = annuity × (((1+r)^n)-1)/r)
we substitute our values
Future Value = 150 × (((1 + 10/100)^40)-1)/10/100)
= 150 × (((1.10)^40)-1) / 0.01)
150 × ((45.2592 - 1)/0.1)
150 × 442.5924
Future Value = $66,388.86
therefore the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
Answer:
118%
Explanation:
Calculation for the M2 measure invested in the managed portfolio
Using this formula
M2 measure invested in the managed portfolio=Managed portfolio standard deviation standard deviation/Market portfolio's standard deviation
Let plug in the formula
M2 measure invested in the managed portfolio=26%/22%
M2 measure invested in the managed portfolio=118%
Therefore the adjusted portfolio P* needed to calculate the M2 measure will have 118% invested in the managed portfolio and the rest in T-bills
Management assesses the company's numerous products and lines of business in a portfolio analysis before allocating resources in accordance with the best chances for organizational growth.
How does portfolio analysis work?
Portfolio analysis is a mathematical strategy for choosing the best possible portfolio that can balance maximizing return and lowering risk in a variety of unpredictable circumstances.
What does portfolio analysis seek to accomplish?
Portfolio analysis is one of the components of investment management that enables market participants to examine and evaluate the performance of a portfolio (equities, bonds, alternative investments, etc.) with the goal of determining performance on a relative and absolute basis as well as the risks attached to it.
To know more about portfolio analysis
brainly.com/question/2758250
#SPJ4
The company in here is forced to sale their older inventory
because of the demand of 700 units while the inventory that last entered their
warehouse was only 600 units. Since they are following the LIFO method of
inventory, LIFO liquidation will take place and the normal gross profit will
differ than the actual profit. The sales for Rose Industries would be $21,000
(700 units x $30). The COGS should have been $12,600 (700 units x $18)
following the normal sale of inventory giving the normal gross profit as $8,400
($21,000 - $12,600). But since the demand is higher than the inventory that was
last purchased, the company needs to sell 100 units of product ab that costs
$12. Therefore, the COGS would be $12,000 [(600 units x $18) + (100 units x
$12). Therefore the actual gross profit is $9,000 which is $600 higher than the
normal gross profit.
