Answer:
Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000
Explanation:
Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).
After all that is done, all we have to do is to solve the following equiation for "A".
Where:
A= Annuity or monthly payment
r= Rate (effective monthly, in our case)
n= Periods to pay (360 months)
Everything should look like this.
Best of luck.
Answer:
11.23%
Explanation:
Arithmetic return = Total return/Total time period
6% = (14% + 17% - 1% + x%) / 4
(6%*4) =30% + x
24% = 30% + x
x = (24% - 30%)
x = -6%
<em>For the standard deviation, we need to use </em><u><em>stdev.s function</em></u><em> in Ms Excel</em>
Standard deviation = stdev.s (14%,17%,-1%,-6%)
Standard deviation = 0.112249722
Standard deviation = 11.23%
So, the standard deviation of the stock's returns for the four-year period is 11.23%.
Considering the situation described above, these findings are the result of "<u>Vertical Analysis."</u>
This is because Vertical Analysis is a form of analysis conducted in a business firm to express their financial statements.
It is written or described in percentages or proportional calculation.
In <u>vertical analysis</u>, the items on the documents are represented as a percentage of another item, such as accounts receivable account represented 23% of total assets and that cost of goods sold represented 38% of total revenue.
Hence, in this case, it is concluded that the correct answer is "Vertical Analysis."
Learn more here: brainly.com/question/16791825
Answer:
The answer is: B) Aug. 1 Stock Investments 72500 Cash 72500 Dec. 1 Cash 75000 Stock Investments 72500 Gain on Sale of Stock Investments 2500
Explanation:
The capital gains can be calculated by the difference between the selling price minus the buying price:
Capital gains = $75,000 - $72,500 = $2,500
On August 1, cash should be credited (asset decrease) and stock investments should be debited (asset increase)
- Dr Stock Investments 72,500
- Cr Cash 72,500
On December 1, cash should be debited (asset increase), stock investments should be credited (asset decrease) and gain on sale of stock should be credited (revenue).
- Dr Cash 75,000
- Cr Stock Investments 72,500
- Cr Gain on Sale of Stock Investments. 2,500
Answer:
Assume return on asset is 100 million, we will use the dupont formula
ROA*(assets/equity)
Bank Y equity = 1 - 0.6= 400 million
Bank Z equity= 1-0.7 = 300 million
ROE Bank Y
(100/1000) *( 1,000/400)=100/400= 0.25 or 25%
ROE BANK Y
(100/1000)*(1000/300)=0.333 or 33%
Investor would prefer investing in Bank Y as it has a higher return on equity
Explanation: