Answer:
A) We need to save $1,005 per month in order to have 1,500,000 in 30 years.
B) We will be able to borrow 158,579
C) We will have 2,259,361 in 35 years
D) The equivalent amount of money is 12,585
Explanation:
A) We are given a future value that we need to have in 30 years. So our future value is 1,500,000. Our present value is 0, our interest rate is 8/12=0.667. We divide 8 by 12 because we need to save money per month. The number of compounding periods are (30*12)=360. We multiply by 12 because monthly payments. Now we will enter this information in a financial calculator to find future value.
Pv= 0
FV = 1,500,000
I=0.66
N=360
Compute PMT= 1,005
B) PMT= 900
I=5.5/12=0.458
N= 30*12=360
FV=0
Compute PV
PV=158,579
C) PV= 100,000
PMT= 300
N= 35*12= 420
I=8/12=0.66
Compute FV=2,259,361
D) We need to know how much money will we need 30 years from now if we want to buy goods and services which are worth 6,000 today considering an inflation rate of 2.5%
We will multiply 6000 by (1+Inflation)^number of years
6000*(1.025)^30
=12,585
Answer:
<em>A</em>
Explanation:
Acme classified Annette as an independent contractor and as such, isn't entitled to certain benefits as compared to Salvatore that was hired as an employee. A contracting staff's timing and work benefits are always limited in comparison to that of an actual employee.
The statement is True.
<h3>What does receipt mean?</h3>
- Receipts are formal records that serve as evidence of a transaction or purchase involving money. Both stock market transactions and business-to-business exchanges issue receipts. As evidence of some expenses, receipts are also required for tax purposes.
- A payment receipt, also known as a receipt for payment, is a record that serves as evidence of purchase. It is supplied by a company to its clients following the receipt of payment for any good or service.
- The patient's receipt can assist you to understand this. You have a right to the patient's receipt under the law. This implies that if you request it, your doctor is required to give it to you. Its contents must be clearly explained and understandable to laypeople.
The patient should be given a receipt for payments on account even if the account is not paid in full.
The statement is True.
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false Hedging, or lowering risk, is the same as increasing the firm's value or return.
<h3>How might currency risk be reduced through hedging?</h3>
hedging to reduce the risk of currency loss. Foreign exchange risk is an unavoidable reality for businesses doing business in other countries, although hedging can help reduce the risk. By taking a contrary position in a comparable asset, the hedging technique seeks to reduce risks associated with financial assets.
<h3>What does hedge mean?</h3>
A approach for reducing the risks associated with financial assets is hedging. It uses market tactics or financial instruments to reduce the risk of any unfavorable price changes. To put it another way, investors use a trade in another investment to protect one investment.
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Answer:
Indenture
Deferred call provision
Explanation:
Indenture is defined as the contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds.
A call provision is defined as the right that the issuer of a security has to call or redeem the security at certain times and under specific conditions.
The call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue is called deferred call provision.
