Answer:
with a life expectancy of 20 years the annuity will yield: 0.21% per month
Explanation:
We will calcualte the monthly interest rate of an annuity of 375 for 20 years which PV is 71,000
C 375
time 240 (20 years x 12 months a year)
PV $71,000.00
<u>We can solve for rate using excel goal seek:</u>
we write any number value on cell A1
then on any other cell we write:
=PV(A1,240,375)
then we will use goal seek and define:
this cell, with the value of 71,000 changing A1
rate = 0.002053645 = 0.21% per month
The correct answer is A. A good, solid business plan.
Answer:
Average rate of return= 10.17
%
Geometric return = 9.23%
Explanation:
<em>Geometric average return</em>
This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .
Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility
The formula below
Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n
Geometric Average return =
(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168
Geometric return =0.0923
× 100= 9.23%
Geometric return = 9.23%
Average rate of return
<em>The average return is the sum of the returns over the years dividend by the Numbers of returns</em>
Average return = sum of return / No of returns
(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17
%
Average rate of return= 10.17
%
Geometric return = 9.23%
Answer:
The correct answer is B) work itself.
Explanation:
The value of human work is not measured by the type of activity of each one (carpenter, professional, farmer ...), but by the fact of being a person who executes it. Among all creatures, only man is able to work in a "programmed and rational" way, in a "conscious and free" way. With his work he humanizes and ennobles nature, modeling it according to his primary interests, in direct relation with his development and integral self-promotion.
For example, if for you, work is a value that requires and demands its exercise. We will have to start with the description of him, which can be in a positive or negative, optimistic or pessimistic way and that turns out to be the reflection of the assessment given.
Adam Smith was the first who alluded to the concept of comparative advantage. This concept has later been elaborated by David Ricardo.
