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never [62]
3 years ago
14

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three ye

ars. If the Federal Reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?
Business
1 answer:
olya-2409 [2.1K]3 years ago
7 0

Answer:

The answer is $ 257.70

Explanation:

PV= Σ  of  discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= <u>$ 257.70</u>

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Break-even point (in dollar sales):

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Thus, the break-even point (in sales dollars) is $130, 299.

The break-even point is the point at which total costs equal total sales. In other words, there is no loss or profit for small businesses. This means that we have reached a stage of production where the cost of production equals the revenue of the product. A breakeven point is used in multiple areas of business and finance.

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2 years ago
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Your insurance carrier might have to raise your rates to pay for the vehicle's damage or medical if a person involved needs it.

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3 years ago
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Answer: Sales orientation

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3 years ago
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The syllogism used is conditional, that is, it occurs through deductive reasoning, because if the minor premise is true, the minor premise will also be true.

<h3 /><h3>What is Conditional syllogism?</h3>

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Therefore, despite being syllogisms that follow the pattern of "If" and "then" to express a logic, the conclusion will not always be true, as this type of syllogism can also be hypothetical.

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