<u>Answer:</u> The rate of interest is 7.18 %
<u>Explanation:</u>
To calculate the rate of interest, we use the equation used for the interest compounded monthly follows:
A = Amount after time period 'T' = $100,000
P = Principal amount = $50,000
R = rate of interest = ?
n = Number of times interest applied per time period = 1 (annually)
T = time period = 10 years
Putting values in above equation, we get:
Calculating the rate of interest in percentage:
Hence, the rate of interest is 7.18 %
Answer:
$4,038
Explanation:
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
Present Value = Future Value x (1/ ( 1 + interest rate ) ^ number of periods)
Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)
Present Value = 6,000 x 0.68058
Present Value = $4,038
Answer:
It is beneficial because it makes money from the trade.
Answer:
$143
Explanation:
The computation of the demand forecast is shown below:
= Weightage × demand observed + Weightage × demand observed + Weightage × demand observed
= 0.1 × 120 + 0.4 × 140 + 0.5 × 150
= $12 + $56 + $75
= $143
Basically we multiplied the weighatge with its demand observed so that the demand forecast could come
