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3 years ago

If you put $700 in a savings account at an interest rate of 3 percent, how much money will you have in one year?

Business

1 answer:

Elanso [62]3 years ago

7 0

Answer:

$721

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

= $700 × (1 + 0.03)^1

= $700 × 1.03

= $721

By applying the future value formula, we can get the value of money after considering the time period and the interest rate

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An analyst is considering an investment in Treetops Inc. and has gathered the following information. What is the expected return

lesantik [10]

Answer:

Expected Return =

Recession = ( 20/100)* 20% = 4%

Steady = (40/100)*10% = 4%

Boom = ( 40/100) * 35% =<u> 14%</u>

Expected Return = <u> 22%</u>

there is no answer in the option. The correct answer is 22%.

Explanation:

Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.

8 0

3 years ago

If the firm’s beta is 1.6, the risk-free rate is 9%, and the average return on the market is 13%, what will be the firm’s cost o

Luden [163]

Answer:

CAPM= RF+B(RM-RF)

= 9+1.6(13-9)

=15.4%

13=RS+1.6*(4)

13=RS+6.4

RS=13-6.4

RS=6.6%

Explanation:

3 0

3 years ago

The financial statement that reports the changes in the retained earnings and common stock for a period of time is known as the.

Tamiku [17]

The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the start and end of a period (e.g., a month or a year). The record reflects a company's solvency and financial position.

<h3>What are the three financial statements?</h3>

The earnings report , record , and statement of money flows are required financial statements. These three statements are informative tools that traders can use to research a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What is the statement of retained earnings ?

Reports the way that net and the distribution of dividends affected the financial position of the company during the accounting period. the sum of the share of net income which is not paid to the shareholder as dividend. the aim of the retained earnings is reinvestment

Learn more about financial statement:

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8 0

1 year ago

You are evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $

stealth61 [152]

Answer:

$37,680.95

Explanation:

The maximum i would be willing to pay is the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $12,500

Cash flow in year 2 = $10,000

Cash flow in year 3 = $7,500

Cash flow in year 4 = $5,000

Cash flow in year 5 = $2,500

Cash flow in year 6 = 0

Cash flow in year 7 $12,500

I = 9%

PV = $37,680.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

3 0

3 years ago

Diversification merits strong consideration whenever a single-business company A. has integrated backward and forward as far as

Gennadij [26K]

Answer:

The correct answer is B.

Explanation:

Diversification is a business strategy in which a company enters a field or market different from its core activity. It is a risk management strategy that mixes a wide variety of investments within a portfolio by allocating capital in a way that reduces the exposure to any one particular asset or risk.

Diversification merits strong consideration whenever a single-business company is faced with diminishing market opportunities and stagnating sales in its principal business.

3 0

3 years ago