Answer:
It allows to to know y-intercept formula which is used to graph a line.
Step-by-step explanation:
Y-intercept formula:
y=mx+b
M: slope (keep in fraction if it is fraction, to help you graph)
B: y-interecept
Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
<u></u>
Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Answer:
Individuals end to continue paying the premiums of the automobile insurance as a habit. However, serious thoughts and putting in element of strategizing helps to reduce the premium in most cases. At times, there is a sudden like on the part of the insurer even for a flawless driver.
A good look up and research of the insurance websites can be of real help in comparing whether a better deal is offered by the other insurance companies, or whether a certain change in the policy or small adjustments of the term would give benefit to the customer.
In case a speeding ticket is received, or an accident is mentioned in the driving history, it is maintained there in for a period of three to five years. Thus, the premium increases substantially. A change of insurer is advised in such situations, where a major search for an insurer, who does not pay that much importance to these details, is to be carried on.
Again, having a teenager driver in the family calls for a caution as the insurance premium increases drastically in such occasion. Having clean driving record of the parents, or kids commuting to far away schools without cars help in such situation.
Answer:
2/10 or 1/5 if you want it simplified
Step-by-step explanation:
9/10 is basically 9 and 7/10 is 7 so 9 - 7 is 2 and we need to add the /10 back so it's 2/10 or 1/5
Answer:
The smaller number is 0.6666... repeating, and the larger number is 1.3333... repeating.
Step-by-step explanation:
