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Taya2010 [7]
3 years ago
8

A stock sells for $6.99 on December 31, providing the seller with a 6% annual return. What was the price of the stock at the beg

inning of the year? $6.59 $1.16 $7.42 $5.84
Business
1 answer:
Dimas [21]3 years ago
6 0

Answer:

Correct option is 6.59

Explanation:

Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:

Present\ value\ or\ price\ of\ stock = Selling\ price\left ( \frac{1}{1+i} \right )^{n}

= 6.99\left ( \frac{1}{1+0.06} \right )^{1}

= \frac{6.99}{1.06}

= $6.59

Therefore, Stock's price in the beginning of the year is $6.59.

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Which of the following statements accurately describes the free enterprise
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Answer:

Businesses are generally free of government ownership and

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A cosmetic company planned to launch a range of low-cost cosmetics. It decided to undertake research on what kind of cosmetics w
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Answer:

Audience; to maximize the reach and success of the campaign Strategy;

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The reason why audience is important in the process is because it has the purposeful intention of maximizing the reach and success of the campaign Strategy.

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Which type of investment offers both capital gains and interest income?
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In 1931, the U.S. President was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and
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Answer: $1,021,382

Explanation:

The Consumer Price index (CPI) is an economic measure that enables us calculate inflation. It checks for a price changes in a group or basket of goods and then averages these price changes to find out how much they may have changed overtime.

A higher CPI means prices have increased.

CPI can then be used to calculate the potential values of goods in different years using another year as a base. This means that prices of goods in one year can be written in terms of prices in another year.

This can be done by Dividing the CPI in the current year by the CPI in the base year (year being expressed in terms of) and then multiplying the result by the price of the good in question.

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The 2007 equivalent of a 1931 salary will therefore be,

= 75,000 * ( 207/15.2)

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How much does David earn in a 35-hour work week (gross pay without benefits)?
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690 dollars without tax


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