Answer:
A $13,250.00
Explanation:
The formula for calculating balance at the end of a period using simple interest is as below.
A = P(1+rt)
A = final amount
P= principal amount which is $12500
r= interest rate 6% or 0.06
t = time which is 1 year
A = $12,500(1+0.06 x 1)
A = $12500 x1.06 x 1
=$12500 x 1.06
=$13,250
Answer:
. A. the allocation of the investment portfolio across broad asset classes
Explanation:
Asset allocation is a strategy where an investor spreads his investments in different classes of assets. The purpose of asset allocation is the minimize risks through diversification. An individual asset allocation strategy is guided by their risk tolerance, personal goals, and investment horizon.
The three classes of assets where investors can place their investments are fixed incomes, equities, and cash and cash equivalents. Financial advisors encourage asset allocation to shield against deterioration of investments in certain classes.
Answer:
a, c , d
investment
decreasing
no effect
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
6. Externalities
Investment spending by businesses includes purchases made by businesses. So, investment spending increases. Net export decreases because import is a negative function of GDP. The increase and decrease cancel each other out and there would be no change in GDP
Success rate is when at rate is bigger than the other
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