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padilas [110]
3 years ago
8

In a financial sector, we use ______ to construct financial instruments such as derivatives.

Business
1 answer:
Anettt [7]3 years ago
3 0

Answer:

Predictive models

Explanation:

Predictive modeling uses statistics to predict outcomes. It can be applied to any type of unknown event, regardless of when it occurred.

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Ou have $11,122.76 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until yo
Sav [38]
This one is tricky, only because you aren't sure if they are adding the percentage before you deposit 4,000 more, or after.  Since both are annually.
But I would add 11,122.76 and 4,000 =15,122.76 add 12% which is 1814.73 making your total for the first year = 16,937.49. 

Then assume it again, you add 4,000.  That's 20,937.49

add 12% of 20,937.49 which is 2512.50 so that equals =23,449.99 by the end of year 2.

so add 4,000 again, that's 27,449.99

find 12% and add it to get =3294 add that to the total =30,743.99 by year 3.

(I'm sure they want you to round, which I keep doing with my decimals, but it'll probably go faster if you round ahead of time, but I'm trying to be accurate)

Keep going....

34,743.99 which 12% added is 4169 or a total of $38,912.99 by end of year 4.

add 4,000 to get =42,912.99 and 12% that's roughly a total of 48,063 rounded by the end of year 5.

52,063  at 12% 58,310 by year 6.

58,000 add 12% = 64,960 at end of year 7
68,960 add 12%= 77235 at year 8

81,235 add 12% =90,983 by year 9

94,983 add 12% =106,380 by year 10 (this is where you can assume that they'd want you to double it and it's be 20 years and 210,000.  But in real math, the amount is increasing so much because it's 12% of the current balance)

123,626.56 year 11

142,942 by year 12

164,574 by year 13

188,803 by year 14

203, 939 by year 15

So you'd go over 210 by year 16.

Now again, this depends if they add the 12% before or after you deposit 4,000 each year.  It also has to have an easier equation, but to be accurate I did it this way.  I'm sure that they want you to do like x=years and you'd go 11,122.76+4,000 multiplied by 12% and then try different years to see the number you get until you'd come to 16.





8 0
3 years ago
According to coase's theory of the firm, why do firms exist? how do firms contribute to the efficiency of the market economy in
dezoksy [38]
Published “The Nature of the Firm” According to Coase's Theory of the firm, firms exist because going to the market all the time can impose heavy transaction costs.<span>Firms exist to economize on the cost of coordinating economic activity.
</span><span>Increasing marginal costs of organizing more transactions within the firm and <span>decreasing returns of managerial ability (knowledge, computation limits..) are the boundaries of the firm.</span></span>
8 0
3 years ago
The net income or net loss is calculated on the
Ber [7]
The net income or net loss is calculated on the statement of owner’s equity.
4 0
2 years ago
The estimated unit costs for a company to produce and sell a product at a level of 15,000 units per month are as follows:Cost It
Lesechka [4]

Answer:

Estimated variable costs per unit=$86.

Option A is correct ($86.00)

Explanation:

Variable cost are those which changes with the activity level. These costs are help in making decision because if we talk about fixed costs, fixed costs do not help in making decisions as they are sunk costs. Management uses variable costs for making the decisions.

Estimated variable costs per unit= Direct material+Direct labor+Variable manufacturing overhead+Variable selling expenses

Estimated variable costs per unit=$38+$23+$21+$4

Estimated variable costs per unit=$86.

Option A is correct ($86.00)

7 0
3 years ago
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
saw5 [17]

Answer:

Correct option is C

Explanation:

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

C. A reduction of $40,000 in E&P because of the exchange.

 

8 0
2 years ago
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