Answer:
the payback period is 4.15 years
Explanation:
The computation of the payback period is shown below:
= Initial investment ÷ Generated cash flows
= $17,000 ÷ $4,100
= 4.15 years
By dividing the initial investment from the annual cash flows per year we can get the payback period
hence, the payback period is 4.15 years
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
12.16%.
Explanation:
Standard Deviation is a financial metric that is used to quantify risk. It is used for risk management strategies. One of the main uses of Standard Deviation is to calculate the Value at Risk for a Portfolio, which is the minimum/maximum loss that a portfolio can incur over a given period of time. The formula that is used to calculate the Standard Deviation of Portfolio is attached.
Standard Deviation of Portfolio =
= 12.16%.
Answer:
This is an example of A : depreciation
Explanation:
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value.
Answer:
The answer is 3.8%
Explanation:
Solution
Bond purchased at price =$2100)
Maturity rate in 30 years worth =$15,000
Sale of the bond = $11,100
Now we find out what annual rate of return will you earn from today
Now
present value =$11,100
Future value = $15,000
Bond Life = 8 years (30-22)
The annual rate of return =[(FV/PV)^(1/n) -1]
= (15000/111000^(1/8) -1
=1.351351^ (1/8) -1
= 3.8%
Therefore the annual; rate of return you will earn from today is 3.8%
Formula for the Real GDP:
RGDP = Quantity in the current year x Price of the output in the base year
The base year should be the 1st year:
RGDP 1 = $300,000, P 1 = $15,000
Q 1st = $300,000 : $15,000 = 20 cars
In the 2nd year we also have: Q 2nd = 20,produced at $16,000 each.
The Nominal GDP = 20 x $16,000 = $320,000 ( market value )
But the Real GDP = 20 x $15,000 = $300,000.
Answer: The real GDP in the year 2 is $300,000.
