Answer:
8.10%
Explanation:
For computing the YTM we have to applied the RATE formula that is shown on the attachment
Data provided in the question
Present value = $1,119.34
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 10.4% = $104
NPER = 7 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the YTM is 8.10%
Answer:
13 years
Explanation:
Note that, if we add the annual interest rate of 7.9% to $8000 [(0.079*8000)+8000] we get a total value of $8632. We perform random division of the 8632 with 11 12, 13 years we note that at 13 years the total annual payment is lowest.
Such that 8632/13 years= $664 lower than paying $750.
Answer:
internal rate of return -16.17%
Explanation:
The internal rate of return is negative because the investment didn't receive dividends for two years. It means that the stock lost value. How much? 16.17% of its value in two years.
<h2>
34 * (1 - 16,17%) = 28.5 </h2>
Answer:
Please see the explanation
Explanation:
Sales budget for the 4 quarters of the first year is given as follows:
Quarter 1 sales=120,000*$20=$2,400,000
Since there is 7% increase in each subsequent quarter, therefore the sales for the subsequent quarters of year 1 shall be calculated as follows:
Quarter 2 sales=$2,400,000*1.07=$2,568,000
Quarter 3 sales=$2,568,000*1.07=$2,747,760
Quarter 4 sales=$2,747,760*1.07=$2,940,103.2
