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OlgaM077 [116]
3 years ago
13

In an exchange, archie gave up his fully depreciated business-use dump truck (fmv $15,000) and $5,000 for a newer business-use d

ump truck (fmv $20,000). what is the gain realized and recognized on the exchange?
Business
1 answer:
TiliK225 [7]3 years ago
5 0

Answer:

The realized gain is 0

Explanation:

The fair market value of the truck that archie gives up is $15,000 and the new truck he gets has a fair market value of $20,000. Archie also gives $5,000 in cash plus his old truck in order to buy the new truck.

Gain= Fair market value of new truck -Fair market value of old truck - Cash paid

Gain = 20,000-15,000-5,000

Gain = 0

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Assume that investors can borrow and lend at risk-free rate of 5%. The optimal tangent portfolio on the efficient frontier has a
gizmo_the_mogwai [7]

Answer:

B. Portfolio B with E(R)=13% and STD=18%

Explanation:

The computation is shown below;

Reward to risk ratio = (15% - 5%) ÷ 20% = 0.5

The porfolio should be in line i.e.

= 0.05 + 0.5 × standard deviation

For portfolio A

= 0.05 + 0.5 × 25

= 17.5%

For portfolio C

= 0.05 + 0.5 × 1

= 5.5%

Portfolio B, the std is 18%

So,

= 0.05 + 0.5 × 18%

= 14%

5 0
2 years ago
Interest is: Aa charge for lending money to a bank Bthe amount owed for borrowing money Cthe amount added into your savings when
astra-53 [7]
Your answer should be B
6 0
3 years ago
karl opens a savings account with 2500.Hedeposits1500 every year into the account that has a 0.75% interest rate, compounded mon
Anastasy [175]

Answer:

28707.80 is the account balance after 10 years.

Explanation:

In his question we have two parts of the problem  the first one is a single deposit of 2500 in which we will find its future value after 10 years by using the future value formula which is Fv = Pv(1+i)^n , where

Fv is the future value after 10 years of saving the amount which we are calculating.

Pv is the present value initial investment of 2500

i is the annual interest rate which will be 0.75% x 12 = 9% as we are given a rate which is for monthly compounding.

n is the number of years the 2500 is saved up for.

Then we substitute these values to the above mentioned formula:

Fv = 2500(1 +9%)^10

Fv = 5918.41

now we will solve the second part of the question which involves 1500 deposited every year which this is an annuity part of the question where periodic payments are made constantly over 10 years for a certain future amount. which the formula is Fv = C[((1+i)^n -1)/i] , where

Fv is the future value of saving 1500 per year for 10 years

C is the periodic saving which is 1500

i is the annual interest rate of 9% as the 1500 is saved per year

n is the number of periods the 1500 is deposited for which is 10 years'

now we substitute to the above mentioned formula to find the future value:

Fv =  1500[((1 + 9%)^10 -1)/9%]

Fv =22789.39 .

now we will combine both future values to find the account balance after 10 years which will be 22789.39+ 5918.41 = 28707.80 rounded off to two decimal places.

5 0
3 years ago
A corn farmer is considered a ________ if he chooses not to join the national interest group his fellow farmers created, yet sti
muminat
A corn farmer is considered a free rider if he chooses not to join the national interest group his fellow farmers created, yet still reaps the benefits of the tax incentives the group lobbied for and won. 
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7 0
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An insurance contract promises to pay benefits based upon a future uncertainty such as death, or illness describes which feature
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