Answer:
Investment period = 24 years
Explanation:
The total amount that an investment made today would become if invested at a particular rate for certain number of years is known as the future value.
The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.
FV = PV × (1+r)^n
1,200,000 = 296,375 × (1.06)^(n)
(1.06)^(n) = 1200000/96,375
(1.06)^(n) =4.048924504
find the log of both sides
n log 1.06= log 4.048924504
n= log 4.048924504/log 1.06
n = 24
It will take 24 years
Answer:
The difference between two securities is 0.89%.
Explanation:
Inflation premium for the next three and five years:
Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3
= 2.83%
Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5
= 3.24%
Real risk-free rate = 2.35%
Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:
Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)
6.80% = 2.35% + 2.83% + MRP(3)
MRP (3) = 1.62%
Similarly,
5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)
8.10% = 2.35% + 3.24% + MRP(3)
MRP (5) = 2.51%
Thus,
MRP5 - MRP3 = 2.51% - 1.62%
= 0.89%
Therefore, the difference between two securities is 0.89%.
Answer:
i) $21 billion
ii) $0
iii) $0
Explanation:
GIVEN DATA : ( two countries )
At the end of year 2
net exports = $20 billion for Japan
Interest earned from assets = $1 billion for Japan
i) The balances for the current account for Japan
export value + interest earned from assets
= $20 billion + $1 billion = $21 billion
ii) Financial account for Japan
Financial account for Japan will be zero because there is no increase or decrease in number of its assets within the given period
iii) capital account for Japan
Capital account of Japan will will have a zero balance. this is because Capital account is used to record foreign investments, local investment and the reserve account as well. and there was no investment captured within the given time that was made by Japan
Answer:
cut back the expansion of labor as a trade off between higher salaries but fewer workers.
Explanation:
If the employer believes that he is paying above average wages, he will try to reduce labor costs. Since unions are specially good in preventing massive layoffs, the other alternative left for the employer is to not hire new employees, or reduce the number of new employees that he expected to hire.
Calculus of All rooms are occupied while the lodge costs $eighty per day for a room. For each growth of x bucks within each day room rate, there are x rooms.
Calculus is a branch of mathematics that involves the examination of fees of trade. before calculus turned into invented, all math turned into static: it can most effectively assist in calculating gadgets that have been perfect nevertheless. but the universe is constantly transferring and changing.
Calculus is tough because it's far one of the most difficult and superior types of arithmetic that maximum STEM majors stumble upon. each high faculty and university calculus are a big jump in terms of the issue as compared to the mathematics publications college students have previously taken.
Learn more about Calculus here: brainly.com/question/24430269
#SPJ4
