Answer:
It will take 4.2 years
Explanation:
The amount due in the future when a sum of money is invested at a particular interest rate for certain number of years is called Future or compound value.
To calculate the compound value, we use the formula below:
FV = PV * (1+r)^n
FV- future value, PV - Present value, r - interest rate, n - number of years
In this question,
FV - 15,000, PV- 5000, r -3%, n- ?
Substituting this value we have:
15,000 = 5000 × (1+0.03)^n
15000 = 5000 × 1.03^n
1.03^n = 15,000/5000
1.03^n = 3
log 1.03^n = Log 3
n = Log 3/log 1.03
n = 4.18735
It will take about 4.2 years for the account to reach $15,000
Answer:
r or expected rate of return = 0.13 or 13%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 1.80 * (0.09 - 0.04)
r or expected rate of return = 0.13 or 13%
Answer: longer than
Explanation:
The discounted payback period simply refers to the number of years that will be required for the cumulative discounted cash inflows to be able to cover a project's initial investment.
It should be noted that the discounted payback period for a project will be longer than the payback period for the project given a positive, non-zero discount rate. This is because the time value of money will be taken into consideration, hence, this will bring about a longer time.
Answer:
GDP is likely to remain same as a result of this conversion.
Explanation:
GDP is the total value of goods & services, produced by an economy, during a given year.
It can be calculated by 2 methods
- By Expenditure method : GDP = Private Final Capital Expenditure + Govt. Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports
- By Income method : NDP = Compensation of Employees + Operating Surplus (Rent + Profit + Income) + Mixed Income
Given case - Converting a rented apartment into a resident owned condominium , with value of housing services = rent formerly paid :
This brings no change in the GDP, as : The apartment 'rent' previously paid was included in 'operating surplus' of national income, by Income method. And, the equal condominium value is now included in investment addition i.e 'Gross domestic capital formation' , by Income method.
Answer:
i am not sure for the first one, but for the second its a corporation
Explanation:
there are a lot of regulations connected with corporations and the taxation of these organizations
