Answer: 0.142
Step-by-step explanation:
Answer:
Step-by-step explanation:
11. 7 × 8 = 8 × 7 [commutative property]
12. 5 × 0 = 0 × 5 [commutative property]
13. 5 × (0 + 8) = (5 × 0) + (5 × 8) [[distributive property]
14. (7 × 1) + (7 × 9) = 7(1 + 9) [distributive property]
15. 6 × 1 = 6 [Identity property of multiplication]
16. 9 × (10 × 1) = (9 × 10) × 1 [[commutative property]
17. 1 × 10 = 10 [Identity property]
18. 7 × 1 = 7 [Identity property]
19. 4 × 8 = 8 × 4 [commutative property]
20. 4 × (1 × 2) = (4 × 1) × 2 [commutative property]
Answer:
y = 0.80
Step-by-step explanation:
Given:
- The expected rate of return for risky portfolio E(r_p) = 0.18
- The T-bill rate is r_f = 0.08
Find:
Investing proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%.
What is the proportion y?
Solution:
- The proportion y is a fraction of expected risky portfolio and the left-over for the T-bill compliance. Usually we see a major proportion is for risky portfolio as follows:
E(r_c) = y*E(r_p) + (1 - y)*r_f
y*E(r_p) + (1 - y)*r_f = 0.16
- Re-arrange for proportion y:
y = ( 0.16 - r_f ) / (E(r_p) - r_f)
- Plug in values:
y = ( 0.16 - 0.08 ) / (0.18 - 0.08)
y = 0.80
- Hence, we see that 80% of the total investment budget becomes a part of risky portfolio returns.
Given:
Principal : $6,000
Interest Rate: 5%
Term : 8 years, compounded annually.
The term compounded annually is a hint that informs us to use the compounded interest formula instead of the simple interest formula.
Compounded interest formula is:
A = P(1 + r/n)^nt
where:
A = future value of loan or investment including the interest
P = principal
r = rate
n = the number of times the interest is compounded per year
t = the number of years the money is borrowed or invested
A = P (1 + r/n)^nt
A = 6,000 (1 + 0.05/1)¹ * ⁸
A = 6,000 (1.05)⁸
A = 6,000 (1.48)
A = 8,880
The total amount Ryan will pay after 8 years is $8,880.00