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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.

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Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X

UkoKoshka [18]

Answer:

$34,789

Explanation:

Worth of stocks = $35,000

Incremental value of the acquisition = $2,500

Stock outstanding of Firm X = 2,000

Price per share of Firm X = $16

Stock outstanding of Firm Y = 1,200

Price per share of Firm Y = $40

Now,

Number of shares issued = 35,000 ÷ 40

= 875 shares

Value after merger = (Value of Stock x + Value of Stock Y + Synergy)

= (1200 × 40) + (2000 × 16) + 2500

= $82,500

Number of Stock Outstanding after merger = ( 1,200 + 875 )

= 2,075

Thus,

Value per share after merger = $82500 ÷ 2,075

= 39.759

Therefore,

Actual cost of acquisition

= Value per share after merger × Number of shares issued

= 875 × $39.759

= $34,789

5 0

4 years ago

What is the difference between intra departmental communication and interpersonal departmental communication

natima [27]

Answer:

Difference between intra departmental communication and interpersonal departmental communication

Explanation:

Intra means within , Inter means between

Intra departmental communication means communication (exchange of information) between people, within the same department in an organisation.

Interpersonal departmental communication means communication (exchange of information) between people, from different departments in an organisation.

5 0

3 years ago

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Spa

sweet-ann [11.9K]

Answer:

E) Bright: No dominant strategy, Sparkle: Strategy 1

Explanation:

The payoff matrix above shows the profits associated with the strategic decisions of two oligopoly firms, Bright Company and Sparkle Company. The first entries in each cell show the profits to Bright and the second the profits to Sparkle. What are the dominant strategies for Bright and Sparkle, respectively?

Bright: No dominant strategy, Sparkle: Strategy 1

5 0

3 years ago

The yield to maturity (YTM) on 1-year zero-coupon bonds is 8% and the YTM on 2-year zeros is 9%. The yield to maturity on 2-year

yarga [219]

Answer:

Arbitrage opportunity may exists as the ZCBs selling at different price at same time due to change in their YTM .

The PV of 100 face value zcb with different ytm are different , in this case.

for one year maturity with face value 100 current price = fv/ pv at 8% = 92.59

for Two year maturity with face value 100 current price = fv / Pv at 9% for two years = 84.167 , if the bond holder sell the bond after 1 year only, the price = 91.74 .

a) The arbitrage opportunity exist with buy two bond with face value 100 with maturity of 1 year and face value 110 with maturity of 2 years.

b) profit 0.01 , as difference between PV of both bond at their YTM rate.

3 0

3 years ago

which what-if analysis tool is the best option for complex calculations requiring constrained optimization?

DiKsa [7]

The what-if analysis tool would be the most adequate choice for intricate calculations that need contrived optimization:

b). Scenario manager

'What-if analysis tool' is described as the tools that are employed to alter the values present in the cells.
It is done to observe the effect of changing the values impact the results produced by the used formula.
The what-if analysis tools have been categorized into three distinct types:
a). Scenarios.
b). Goal Seek.
c). Data Tables.
As per the question, in order to opt for complex calculations, 'Scenarios' what-if analysis would be most adequate as they examine a number of variables and set of numbers/values that affect the outcome.

Thus, option b is the correct answer.

Learn more about 'what-if tool' here:

brainly.com/question/14830872

8 0

2 years ago