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mr Goodwill [35]
3 years ago
5

Sixty years ago, your mother invested $3,800. Today, that investment is worth $430,065.11. What is the average annual rate of re

turn she earned on this investment
Business
1 answer:
LuckyWell [14K]3 years ago
3 0

Answer:

8.2%

Explanation:

As we know that:

r = (Future Value / Present Value)^(1/Time)   - 1

Here

Future Value is $430,065.11

Present Value is $3,800

Time is 60 years

By putting values, we have:

r = ($430,065.11 / $3,800)^(1/60)   - 1

r = (113.16)^(1/60)   - 1

r = 1.082 - 1 = 8.2%

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NNADVOKAT [17]

Answer:

Net Present Value = $59,632.78

Explanation:

<em>The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project. </em>

<em>NPV = PV of cash inflow - PV of cash outflow </em>

Present value of cash inflow:

65,000 × (1.09375)^(-1) + 98000 ×(1.09375)^(-2)+ 126,000 ×(1.09375)^(-3)+  132,000 × (1.09375)^(-4)= 326882.7792

PV of annual maintenance cost :

=1,500 × (1- 1.09375^(-4))/0.09375

=4819.84773

NPV = 26882.7792  - 4819.84773 - (255,000+12250)

= 59,632.78

8 0
3 years ago
Proper use of child safety seats reduces
levacccp [35]
It gives the child more protection so like say we didn't have seat belts then you got into a car accident then you would fly forward and if you had a seatbelt it wouldn't make you fly forward
7 0
3 years ago
Read 2 more answers
A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this w
mixas84 [53]

Answer:

pooling losses

Explanation:

This agreement embodies the concept of pooling losses. In this concept, each individual loss is spread over to the entire group. In order for this arrangement to be effective, a large number of farmers are required, so whenever a farmer suffers a loss, it will be mitigated due to the pooling over the large group.

8 0
3 years ago
Suppose that Greece and Germany both produce oil and shoes. Greece's opportunity cost of producing a pair of shoes is 5 barrels
Mila [183]

Answer:

1. Greece, Germany

2. 2.2 barrels of oil, 0.45 pairs of shoes

3. d. 10 barrels of oil per pair of shoes

Explanation:

a) Data and Calculations:

To produce a pair of shoes costs Greece 5 barrels of oil

To produce a pair of shoes costs Germany 11 barrels of oil

b) This means that it costs Germany more than Greece to produce a pair of shoes, and Germany produces a lot of oil to the extent that she is willing to exchange her 11 barrels of oil for a pair of shoes while Greece can only exchange 5 barrels of oil for a pair of shoes.

8 0
3 years ago
Firm AB and Firm YZ are identical except for their debt-to-total-assets ratios (D/TAs) and interest rates on debt. Each has $200
Vilka [71]

Answer:

the correct answer is

NOT AB EPS = $3.08

AB ROE = 17%

YZ EPS = $2.36

YZ ROE = 18%

3 0
3 years ago
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