All categories

3 years ago

What is the interest rate for initial investment of $100,000 to grow $300,000 in 10 years

Business

2 answers:

igomit [66]3 years ago

7 0

The interest rate that increases from long-term investment for 10 years is 200%

The following calculations:

(Current investment - Initial investment) / Initial investment x 100% = Result

($ 300,000- $ 100,000) / $ 100,000 x 100% = 2 x 100% = 200%

<h2>Further Explanation </h2>

In investments, the capital you spend to finance the investment must be calculated in the calculation of investment returns.

Return on Investment can be described as the ratio of capital that you spend on investments in proportion to the benefits of the investment.

Calculating Return of Investment is very important because it determines your ability to develop the investment in the future, not just to run it (because investment requires additional capital if you want to develop it).

For some investors, short-term investments are chosen because they have the potential to provide faster returns.

Meanwhile, long-term investments are chosen to take advantage of the compounding effect, minimize risk, and to realize various financial goals in the long run.

Many investors who prefer to accelerate the velocity of money so that they prefer short-term investments so that the return in the form of the principal investment and interest can be obtained more quickly.

The compounding effect is actually very common in the world of investment and credit. It's just that, many investors have not maximized the benefits.

Learn More

Long-term investment brainly.com/question/13810885

investment interest brainly.com/question/13804061

Details

Grade: middle school

Subject: Business

Keyword: long-term, investment, interest

dybincka [34]3 years ago

6 0

Answer:

r=20% or 0.2 %

Calculation:

Solving equation:

r = (1/10)((300000/100000) - 1) = 0.2

r = 0.2

Converting r decimal to R a percentage

R = 0.2 * 100 = 20%/year

The interest rate required to get a total amount, principal plus interest, of $300,000.00 from simple interest on a principal of $100,000.00 over 10 years is 20% per year.

You might be interested in

Suppose business decision makers become more optimistic about the future and, as a result, increase their investment spending by

Art [367]

Answer:

$80 million

Explanation:

We know that

Multiplier = (1) ÷ (1 - marginal propensity to consume)

= (1) ÷ (1 - 0.75)

= (1) ÷ (0.25)

= 4

Now the GDP would increase by

= Increase in Investment spending × multiplier effect

= $20 billion × 4

= $80 million increase

We simply multiplied the investment spending increase with the multiplier effect

4 0

3 years ago

Today, most salespeople are well-educated, well-trained professionals who work to build and maintain long-term customer relation

stepladder [879]

Answer:

b. False

Explanation:

The above is false because sales people are supposed to build and maintain long term relationships with their customers by listening to and assessing their needs and not teaching their customers. Sales people create a concerted effort towards solving those needs experienced by their customers.

A salesperson represent the image of the company he or she is selling for, hence must be professional and well trained because the company gets profit through his interactions with the customers. This means that before the company gets profit, customers must be satisfied because these salespeople act as critical link between the company and its customers.

4 0

4 years ago

If the domestic demand curve is Equal 20p Superscript negative 0.5, the domestic supply curve is Equal 5p Superscript 0.5, and

pishuonlain [190]

Answer:

$52

$ 1.33

consumer price will increase
consumer surplus will decrease
import will decrease
reduced export
portends gloom for the general outlook for the economy

Explanation:

Given domestic demand curve, S(p) = 20p⁻⁰°⁵

the domestic supply curve S(p)= 5p⁰°⁵

world price is $7.00

using calculus to determine the changes in consumer surplus

by consumer surplus means in this case supply exceeds demand

we establish the equilibrium point where the supply and demand functions meet or are equal

solving 20p⁻⁰°⁵ = 5p⁰°⁵

20/5 = p⁰°⁵/p⁻⁰°⁵

4 = p⁰°⁵⁺⁰°⁵

4= p = q which is the quantity produced

consumer surplus = maximum price willing to pay - Actual price

= ∫⁴₀ dp dp - p* q

= ∫⁴₀20p⁻⁰°⁵ dp- 7* 4

= 20∫⁴₀p⁻⁰°⁵ dp -28

= 20/0.5 p⁰°⁵- 28

= 40 *4⁰°⁵ - 28 = $52

producer surplus = it is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

thus producer surplus = p* q - ∫⁴₀ d(s) dp

= 7 * 4 - ∫⁴₀ 5p⁰°⁵ dp

= 28 - 5 ∫⁴₀ p⁰°⁵ dp

= 28 -5 *2/3 p¹°⁵

= 28 -5 *2/3 4¹°⁵

=$ 1.33

welfare from eliminating free trade

consumer price will increase
consumer surplus will decrease
import will decrease
reduced exports

portends gloom for the general outlook for the economy

5 0

4 years ago

What is important to remember when cutting curly hair

astraxan [27]

It's important that when you're going to cut it, you stretch it so that you cut the right amount and look like the hair

6 0

3 years ago

On January 1, a company issued and sold a $440,000, 6%, 10-year bond payable, and received proceeds of $434,000. Interest is pay

Harlamova29_29 [7]

Answer:

The carrying value of the bonds immediately after the first interest payment is $434,300.

Explanation:

Face value of the bond = $440,000

Proceeds from bond issue = $434,000

Discount on bond payable = Face value of the bond - Proceeds from bond issue = $440,000 - $434,000 = $6,000

Total number of seminual = Number of years of bond maturity * Number of semiannual in a year = 10 * 2 = 20

Discount amortizaton per semiannual = Discount on bond payable / Total number of seminual = $6,000 / 20 = $300

Carrying value after first interest payment = Proceeds from bond issue + Discount amortizaton per semiannual = $434,000 + $300 = $434,300

Therefore, the carrying value of the bonds immediately after the first interest payment is $434,300.

3 0

3 years ago