1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MakcuM [25]
3 years ago
9

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:

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

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

<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
Use the following information to perform the calculations below (using the indirect method).
daser333 [38]

Answer:

a) cash flow from operating activities

net income $650,000

adjustments:

depreciation expense $96,000

accounts payable $38,000

accounts receivable -$22,800

inventory -$57,000

prepaid insurance -$8,400

net cash flow from operating activities $695,800

b) cash flow from investing activities

Sale of long term investments $57,500

Purchase of long term assets -$610,000

Long term assets exchanged for common stocks $113,000

net cash flow from investing activities -$439,500

7 0
2 years ago
Rodney just earned his master's degree in Marketing. Based on his education, which job would he be best suited for? Supply Chain
lubasha [3.4K]

Answer:

Marketing Specialist

Explanation:

Marketing is in all the activities undertaken by a business to entice customers to but its products.  It will include all promotional initiatives that aim at increasing the sales volume of a company. These activities range from advertising, promotions, publicity, and direct selling.

Rodney has graduated in marketing; meaning has acquired skills and competencies required in the marketing discipline. He will be more effective as a marketer as he has adequate knowledge of marketing. Rodney will be more fulfilled and better motivated in marketing because that is his area of strength.

7 0
3 years ago
The Blue Hydrangea Law Firm prepays for advertising in the local newspaper. On January​ 1, the law firm paid $ 7 comma 700 for s
Ivahew [28]

Answer:

$7,700

Explanation:

There are two basis of accounting. These are the cash and accrual basis. In the cash basis of accounting, expenses are full recognized only when cash has been paid.

Hence unlike in the accrual basis where the payment or non payment results in the recognition of the expense once it has been incurred (and a corresponding asset or liability in form of prepayments and accrued expense), expenses under the cash basis of account would always result in a debit to expense and a credit to cash.

As such, if On January​ 1, the law firm paid $ 7 comma 700 for seven months of advertising, this will be recognized as the expense for the two months ending February 28 under the cash basis.

6 0
3 years ago
Ethics is so important in financial accounting and reporting that the government has passed a law regulating ethical actions of
devlian [24]
<span>Ethics is incredibly important when it comes to financial reporting and accounting, so important that the government saw fit to pass a law that regulates the actions of businesses and how ethical they are when it comes to how they report. The reason that ethics is so very important when it comes to the economy of the country is because if there is a reason to believe that companies are using unethical practices in reporting, it allows investors and creditors to back away and not offer any more financial backing.</span>
7 0
3 years ago
If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits, the firm will:
Serjik [45]

Answer:

A. reduce output and increase price.

Explanation:

In the case of monopolistic firm at the time of profit maximization, the marginal revenue should be equivalent to the marginal cost i.e.

Marginal revenue = Marginal cost

When the marginal cost rises, the cost of generating an additional unit is also rise to equate MR and MC and at the same time the output would be decreased and the price is increased also the price is more than its marginal cos

Therefore the option A is correct

7 0
3 years ago
Other questions:
  • If an executive or department head practices a laissez-faire approach to management, she is _____.
    11·2 answers
  • Aunt​ Emily's Food Products is famous for its frosted fruit cake. The main ingredient of the cake is dried​ fruit, which Aunt​ E
    9·1 answer
  • Beyer Company is considering the purchase of an asset for $180,000. It is expected to produce the following net cash flows. The
    6·1 answer
  • Sarah opened her last month's bank statement, today, to find she had an ending bank balance according to First Bank of Broad Rip
    14·1 answer
  • An ex-gratia claim made when a project is closed down is made when
    6·1 answer
  • The Ziltech Consulting Group reported net income of $1,000,000 for its fiscal year ended December 31, 2021. In addition, during
    5·1 answer
  • Zack enters into a contract to buy Olivia’s home. Per the terms of the contract, Zack must put down a $10,000 earnest money depo
    8·1 answer
  • Karen has been a buyer for Ocean Mist, a large cranberry processor, for several years. Believing that she knows a great deal abo
    6·1 answer
  • What might you need to do to renew your credentials?
    5·2 answers
  • Which herbs are useful from cosmetic point of view ? also name the products made from them<br>​
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!