Answer:
<u>Annual rate of return which will be earned from today is 5.89%</u>
Explanation:
FV = PV (1+r)^n
r is int Rate per anum abd n is balance period
10000 = 6700 ( 1 + r)^n
10000 = 6700 ( 1 + r)^7
( 1 + r)^7 = 10000 / 6700
= 1.4925
1+r = 1.4925^(1/7)
= 1.0589
r = 1.0589- 1
= 0.0589 i.e 5.89%
No, 6ft=72in. There the same.
Answer:
The price of the bond is $659.64.
Explanation:
C = coupon payment = $62.00 (Par Value * Coupon Rate)
n = number of years = 6
i = market rate, or required yield = 15 = 0.15 = 0.15 /2 = 0.075
k = number of coupon payments in 1 year = 2
P = value at maturity, or par value = $1000
BOND PRICE= C/k [ 1 - ( 1 / ( 1 + i )^nk ) / i ] + [ P / ( 1 + i )^nk )]
BOND PRICE= 62/2 [ 1 - ( 1 / ( 1 + 0.075 )^6x2 ) / 0.075 ] + [ $1,000 / ( 1 + 0.075 )^6x2 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= 31 [ 1 - ( 1 / ( 1.075 )^12 ) / 0.075 ] + [ $1,000 / ( 1.075 )^12 )]
BOND PRICE= $239.79 + $419.85 = $659.64
Answer: 18.8%
Explanation:
Simple rate of return on investment = Incremental net operating income / investment
Incremental net income = Operating savings - Annual cost
= 145,000 - 420,000/6 years
= $75,000
Net investment = Cost of new machine - salvage value of old
= 420,000 - 21,000
= $399,000
Return on investment = 75,000/399,000
= 18.8%
Answer:
<h2>The answer, in this case, would be option a. or Incontestability clause.</h2>
Explanation:
- In the context of life insurance provision, incontestability clause basically refers to the prevention of the denial of insurance service by the insurer on ground of falsification or fraudulent misrepresentation of relevant fact or information in the insurance application.
- Incontestability clause is officially applicable following the effective implementation of the insurance policy at least for a particular time period, which is usually considered to be two to three years.
- The clause is commonly applicable in the case of life and health or medical insurance policies.
