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2 years ago

A company made a profit of $75,000 over a period of 6 years on an initial investment of $15,000. What is its annualized ROI?

1 answer:

6 0

Return on Investment = 83% or 0.83

total Profit = 75000
term = 6 yrs
annual profit = 75000 / 6 = 12500
initial investment = 15000

ROI = Net Profit / Total Asset
= 12500 / 15000
= 0.83 or 83% (0.83 x 100%)

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Good Firm is highly profitable and will grow rapidly in the future. Bad Firm faces the same risks but barely makes a profit and

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Answer: B.both stocks are equally good investments

Explanation:

The options are;

A.it is better to buy shares in Bad Firm

B.both stocks are equally good investments

C.it is better to buy shares in Good Firm

D.both stock prices react equally to the same information

From the question, we are informed that Good Firm is highly profitable and will grow rapidly in the future while Bad Firm faces the same risks but barely makes a profit and will not grow at all. It should be noted that In an efficient market, both stocks are equally good investments.

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3 years ago

f a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy ___

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If a price floor of $15 is imposed on this market and the government chooses to purchase the surplus, the government must buy 10 units of the good and spend a total amount of $150 on its purchase.

Explanation:

According to the given figure, a surplus of the good will result if the price is $15. The government has a total amount of $150. If it decides to spend the total amount on purchasing, the government should buy 10 units of goods.

As the price of each good is $15 and the total amount with the government is $150.

On calculating with the given information,

150/15= 10

So the government can buy 10 units of goods for the total amount of $150.

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3 years ago

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit

Firdavs [7]

Answer:

1. $486,134.86

2. $525,593.86

3. $602,492.04

Explanation:

You need to use the formula to calculate the future value of a constant annual deposit:

$Future\text{ }value=Deposit\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]$

Where r is the expected percent return, and n the number of years.

1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.

You will have saved:

$Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]$

$Future\text{ }value=\$ 30,800\times 15.7835993=\$486,134.86$

2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.

You will have saved:

$Future\text{ }value=\$ 33,300\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]$

$Future\text{ }value=\$ 33,300\times 15.7835993=\$525,593.86$

3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.

$Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.11)^{11}-1}{0.11}\bigg]$

$Future\text{ }value=\$ 30,800\times 19.56143=\$602,492.04$

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2 years ago

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with m

Illusion [34]

A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their twenty-fifth payment and the current balance on the loan is $208,555.87. Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a new 15-year fixed loan. Their bank has made the following offer: 15-year term, 3.0%, plus out-of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing. Build a spreadsheet model to evaluate this offer. The Excel function: New monthly payment PMT(3%/12, 15*12, 208555.87, 0, 0) = $1,440.25 Now, we need find the additional amount.

<h3>What is Interest rates?</h3>

The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate (called the principal sum). The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.

The interest rate over a year is known as the annual interest rate. Other interest rates are applicable over shorter time frames, such a day or a month, but they are typically annualized.

According to one definition, the interest rate "is an indication of the preference for a dollar of present [income] over a dollar of future income."

To learn more about interest rate from the given link:

brainly.com/question/886396

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7 0

1 year ago

Central City needs to have an income of $3,560,000. The total property is valued for taxation at $92,000,000.What is the tax rat

asambeis [7]

Answer:

3.87%

Explanation:

Data provided in the question:

Income needed by the central city = $3,560,000

Total Value of the property for the taxation = $92,000,000

Now,

The income needed by the central city = Tax collected

The income needed by the central city = Total Value of the property for the taxation × Tax rate

$3,560,000 = $92,000,000 × Tax rate

Tax rate = $3,560,000 ÷ $92,000,000

Tax rate = 0.0387

Tax rate = 0.0387 × 100%

= 3.87%

5 0

3 years ago