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Snowcat [4.5K]
3 years ago
9

What annual rate of return would Jia need to earn if she deposits​ $20,000 per year into an account beginning one year from toda

y in order to have a total of​ $1,000,000 in 30​ years?
Business
1 answer:
Nimfa-mama [501]3 years ago
5 0

Answer:

3.12%

Explanation:

We use formula in excel to calculate annual rate of return

Rate = (Nper,PMT,,FV,1)

Nper (number of payments): 30

PMT (payment made every period) : -$20,000

FV (future value of investment): $1,000,000

type 1 for payment beginning of period

Then rate = (30,-20000,,1000000,1)= 3.12%

Please see excel attached for the calculation

Download xlsx
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1. Describe the four management functions and the type of management activity associated with each.
kari74 [83]

Answer:4 Functions of Management Process: Planning, Organizing, Leading, Controlling

Planning and Decision Making – Determining Courses of Action.

Organizing – Coordinating Activities and Resources.

Leading – Managing, Motivating and Directing People.

Controlling – Monitoring and Evaluating activities.

Explanation:

8 0
3 years ago
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.5 percent and a standard devi
mario62 [17]

Answer: Step 1) Find share of market in the Portfolio

(11.5-3.5)x+3.5=6.5

8x=3

x=3/8

x=0.375

=37.5%

SD of market portfolio= 0.375x+0=9.5

x=9.5/0.375

=25.33%

correl = cov / (std 1 * std2)

0.4=COV/0.2533*0.545

COV= 0.2533*0.545*0.4=0.05

cov of 2 assets = b1 * b2 * variance of market

0.05=B1*1*0.2533^2

B of security=0.0032

Capm Model

3.5+0.0032(11.5-3.5)=3.5256% expected return

Explanation:

Step 1) Find the share of market in the portfolio in order to find market SD

Step 2)  Find Covariance betweens security and market by using both SDS and correlation

Step 3) Find Beta of Security using Co variance

Step 4) Use the Beta in CAPM model in order to find expected return

4 0
3 years ago
A company has Net Income of $10, which included $2 of depreciation expense. There were no other noncash expenses in Net Income a
alexandr402 [8]

Answer:

2

Explanation:

The company's cash flow from operating activities can be calculated as follows:

                                                                                                $

Net Income                                                                            10

Add:depreciation expense                                                    2

Less:changes in accounts receivable                                  (5)

(20-25)

Less:changes in accounts payable                                      (10)

(5-15)

Add:changes in inventory                                                     5

(12-7)

Cash flow from operating activities                                       2        

3 0
3 years ago
In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes various people, depending on the
expeople1 [14]

Answer:

Buying Center.

Explanation:

A Buying Center is a group if individuals within an organization that are responsible for making purchase decisions.

The Buying Center is also called the Decision Making Unit (DMU), and it includes personnel from various departments.

7 0
3 years ago
For the quarter ended March 31, 2020, Croix Company accumulates the following sales data for its newest guitar, The Edge: $321,6
jeyben [28]

Answer:

$13,800

Explanation:

Static budget report for the second quarter and for the year to date

PRODUCT LINE: BUDGET; ACTUAL; DIFFERENCE; REMARK

Guitar:The Edge 380,800 394,600

13,800 favorable

Production line = Guitar:The Edge

Budget =$380,800

Actual=394,600

Difference = 13,800

Remark : Favorable

8 0
3 years ago
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