Answer: The difference in the two future values is $2703.79.
We arrive at the answer at follows:
We need to find the future value of these investments.
<h3><u>
A. First investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 12%
No. of years (n) 7
No. of compounding periods per year (m) 12 (monthly)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3>B<u>
. Second investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 13%
No. of years (n) 7 No. of compounding periods per year (m) 2 (semi-annual)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3><u>C. Difference between the two Future values</u></h3>
Answer:
C. lower, higher
The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price
Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.
Explanation:
A speech of praise or blame, celebration or thanksgiving, condemnation or mourning. 2 techniques:identification and magnification.
Answer: Multi-modal
Explanation:
The multi-modal is one of the type of communication that mainly focus on the contractual arrangement.
The multi-model is the type of shipment mode in which the shipment of products and the services are transport from one form to another by using the shipping container.
The mode of the transportation is usually the rails and the roads. In the given situation, the given transportation solution is basically refers to the multi-modal.