The applicable formula is;
A = P(1-r)^n
Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A
Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years
Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.
Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).
Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years
To nearest year;
n = 21 years
Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.
Answer:
Answer is given below.
Explanation:
it is absolutely exploitative to adjust the maturing of the records receivable with no legitimate explanation so as to diminish the remittance made so as to expand the benefit and show an off base monetary record figures to the partners. The controller can't subjectively choose to change the records receivable to cut down the noncollectable records as at some point or another a similar will be found during review and a similar will be hailed off as a fake. The long haul results you would confront incorporate landing terminated from the position, having your authorized dropped in the event that you are CPA and may likewise confront lawful prosecutions. You should disclose to the controller that so as to simply introduce a decent benefit for the present year it can place into the danger for the future and put their vocation in question. Additionally, a similar won't be valued by the investors and the organization may go on free its altruism.
Answer:
The correct answer is: C. larger decrease in total risk.
Explanation:
The risk of an investment portfolio refers to the possibilities of obtaining the return, profit or profit you expect. Every investment involves a risk, and the more you can earn, the greater the risk. If you put your money on a fixed term, the risk is minimal, but it hardly gives you an interest even less than inflation. If you invest in the forex market, for example, you can earn a lot of money, but also the risk (that you do not achieve and even that you lose what you invested) is much greater. Every investor knows that he must assume some risk, because it is something inherent in the investment.
The coordinates of point M after the partition is (2, 3.25).
<h3>
What are coordinates and how to determine coordinates?</h3>
- A coordinate system in geometry is a system that uses one or more integers, or coordinates, to define the position of points or other geometric components on a manifold such as Euclidean space.
We have:
- Endpoints = (-1,1) and (7,7)
- Ratio, m : n = 3 : 5
The coordinates of point M is then calculated using:
So, we have:
Evaluate the sum and the product:
Evaluate the product:
The coordinates of point M is (2, 3.25)
Therefore, the coordinates of point M after the partition is (2, 3.25).
Know more about coordinates here:
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Answer:
decreased
Explanation:
As we know that there is a negative relationship between the rate of return i.e. required and the price of the stock. That means if the required rate of return rises, than the price of the stock reduced and vice versa
As in the given situation it is mentioned that the required rate of return increase so the price of the stock is decreased
The same is to be considered
