What's on the list? I need to know so I can answer :)
Answer:
Final Value= $43,871.84
Explanation:
Giving the following information:
Suppose you invest $2500 each year in a savings account that earns 12% per year.
Number of years= 10
To calculate the final value we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit= 2,500
i= 0.12
n=10
FV= {2,500*[(1.12^10)-1]}/0.12= $43,871.84
The amount of annual depreciation by the straight-line method is $18,800.
<h3>Annual depreciation</h3>
a. Annual depreciation
Annual depreciation=[($80,000 - $4,800) ÷ 4]
Annual depreciation=$18,800
b. Annual depreciation
Year 1 Annual depreciation= 10% × $80,000
Year 1 Annual depreciation = $8,000
Year 2 Annual depreciation= 10% × ($75,000 - $7,500)
Year 2 Annual depreciation = $7,520
Therefore the amount of annual depreciation by the straight-line method is $18,800.
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The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.
<h3>
What is a risk?</h3>
Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.
Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.
Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.
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Answer:
The correct answer is 0.4%.
Explanation:
According to the scenario, the computation for the given data are as follows:
If no debt, then required return can be calculated by using following formula:
Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium
= 6% + 1 × 4%
= 0.06 + 0.04
= 0.10 or 10%
If debt, then required return can be calculated by using following formula:
Required return ( with debt) = Risk free rate + levered Beta × Market risk premium
= 6% + 1.1 × 4%
= 0.06 + 0.044
= 0.104 or 10.4%
So, extra premium required = 10.4% - 10% = 0.4%
