Answer:
10%
25.14 years
Explanation:
A financial calculator can be used to solve these problems
PMT = $-1,100
PV = $5,355.26
FV = 0
N = 7
Compute I = 10%
PMT = $-25,000
FV = $1,387,311
I = 6%
PV = 0
Compute N = 25.14 years
Answer:
Beta= 1.5
Explanation:
<u>First, we need to calculate the proportional investment of each asset:</u>
Total investment= $100,000
BOA= 30,000/100,000= 0.3
Best Buy= 20,000/100,000= 0.2
Harley-Davidson= 50,000/100,000= 0.5
<u>To calculate the beta of the portfolio, we need to use the following formula:</u>
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)...
Beta= (0.3*1.8) + (0.2*1.05) + (0.5*1.5)
Beta= 1.5
Answer:
16.64 days
Explanation:
Given the above information, we will calculate the average days to sell inventories with the formula below;
Average days to sell inventories = [Ending inventory / Cost of goods sold] × 100
Ending inventory = $72,000
Cost of goods sold = $432,800
Then, Average days to sell inventories
= [$72,000 / $432,800] × 100
= 16.64 days
Therefore, the average days to sell inventory for Fry are 16.64 days
In order to properly tackle this problem, we must understand the relationship between the nominal annual rate and real (effective) annual rate.
To do this:
-First you take the nominal rate, divide by the number of times it's compounded (converted) per year.
-Then, add one to that number, and raise that number to the power of how many times you compound per year.
Here is the method in practice:
First 3 Years:
Nominal rate= 2% ÷ 12 times/yr = 0.001667
Effective rate = 1.001667 ^12 = 1.020184
Next 2 Years (Discounting)
3% ÷ 2/yr = .015
1.015 ^ 2 = 1.061364
Next 4 years (Interest)
.042 ÷ .5 (once every 2 years) = .084
1.084 ^ (1/2) = 1.041153
The last 3 years are already expressed as an effective rate, so we don't need to convert them. The annual rate is:
1.058
I kept the 1 in the numbers (1.058 instead of 5.8% for example) so that it's easier to find the final number
Take every relevant number and raise it to the power of the number of years it's compounded for. For discounting, raise it to a negative power.
First 3 years: 1.020184 ^ 3 = 1.061784
Next 2 years: 1.030225 ^ -2 = .942184
Next 4 years: 1.041163 ^ 4 = 1.175056
Last 3 years: 1.058 ^ -3 = .84439
Multiply these numbers (include all decimals when you do this calculation)
1.062 * .942 * 1.175 * .844 = .992598
This is our final multiplier to find the effect on our principal:
.992598 * 2,480 = 2461.64
Answer is 2461.64
Answer:
b.$1,027,500
Explanation:
First we need to find the number of bonds issued so we will divide 1,000,000 by 100 as we assume 100 is the face value. 1,000,000/100=10,000
Now we will multiply the number of bonds by the issue price in order to find the amount of cash received.
10,000*102.75=1,027,500
