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elena-14-01-66 [18.8K]
3 years ago
13

The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $170/month for their trip. If they depos

it this money at the end of each month into a savings account paying interest at the rate of 5%/year compounded monthly, how much money will be in their travel fund at the end of the second year?
Business
1 answer:
4vir4ik [10]3 years ago
8 0

Answer:

They will have $4,281.61 at the end of second year.

Explanation:

This is an annuity problem. Use formula for finding FV of annuity to get the correct answer

FVA=\frac{PMT}{r} [(1+r)^{n} -1]

PMT=170

r = 0.05/12= 0.0041667

n = 2*12= 24 months

FVA= (170/0.0041667)*[(1+\frac{0.05}{12} )^{24} -1]= $4281.606

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Investors expect the market rate of return this year to be 14.50%. The expected rate of return on a stock with a beta of 1.2 is
sesenic [268]

Answer:

14.52%

Explanation:

The computation of the rate of return on the stock is shown below:-

The expected rate of return on the stock = Beta × (Rate of return - Market rate of return)

= 1.2 × (0.121 - 0.145)

= - 2.88%

So, the expected rate of return on the stock = Current percentage - expected rate of return on the stock

= 0.174 - 0.0288

= 14.52%

Therefore we simply applied the above formulas

4 0
3 years ago
In one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it fal
pishuonlain [190]

Answer:

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3 years ago
Two managers in the research and development department of a company disagree on whether their organization should outsource dev
Allushta [10]

Answer:

Intragroup.

Explanation:

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

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These departments which are vertically structured may include, finance, IT, sales and marketing, research and development, customer service etc. Also, the various departments are headed by a functional manager who are saddled with the responsibility of overseeing, managing and reporting to the executive management.

In this scenario, two managers in the same department of a company disagree on whether to outsource the development of a new product or staff it internally. Thus, this is an example of intragroup conflict because its happening within the same department of an organization having common goals and interests.

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3 years ago
What are the steps for the software engineering institute model for risk management?
Dahasolnce [82]

Answer:

A

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Identify, analyze, plan, track, and control

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3 years ago
Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 15-year zero coup
Vladimir79 [104]

Answer:

a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:

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b) Interest deduction

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= 588.01

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Further computation is done in the image below.

8 0
3 years ago
Read 2 more answers
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