Answer:
The correct answer is D.
Explanation:
Giving the following information:
Annual deposit= 5,000*1.25= $6,250
n= 35 years
i= 0.08 annual
To calculate the future value of the retirement plan, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {6,250*[(1.08^35)-1]}/0.08= }$1,076,980.02
Actually I got mixed up, the answer i meant to write was B.
Answer:
a. Profit to an investor who buys call for $4
a. $ -4
b. $ -4
c. $ -4
d. $ 1
e. $ 6
b. Profit to an investor who buys call for $6.5
a. $1.5
b. $6.5
c. $ -1.5
d. $ -3.5
e. $ -8.5
Explanation:
The call option is a derivative in which an investor buys an option to buy the asset at a certain price. The value of the call option is determined by maturity. The buyer of call option can buy an asset at a strike price before expiration date.
If the investor buys the call option for $4 then the $4 is an expense for the investor. The value of call will be -4 unless the stock price is above $50.
If the investor buys the call option for $6.5 then the $6.5 is an expense for the investor. The value of call will be -6.5 unless the stock price is below $50.
When making an attribution, Dan considers how this roommate has behaved in similar situations in the past. Dan is using consistency information.
Information consistency refers to the same thing, being consistent, that even though something may be slightly different the outcome remains the same. In this case, Dan is assuming his roommate will make the same behavior choices as he has previously.
