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DerKrebs [107]
3 years ago
9

A consol paying $20 annually when the interest rate is 5 percent has a price of

Mathematics
1 answer:
allsm [11]3 years ago
8 0
Answer:  $ 400 .
_________________________
Explanation:
_____________________________________
Note that a "consol" is a "perpetuity".
______________________________________________
To find the "PV" (Present Value) of a perpetuity, we use the equation:   PV = C / r  = Current value / interest rate
         
       = $20 / (5%) = $20 / (5/100) = $20 / (0.05) =  $400 .
___________________________________________________
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Anna007 [38]

Answer:

Step-by-step explanation:

If A is in between Y and Z, then;

YA+AZ = YZ

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YA = 14x,

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3 years ago
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melisa1 [442]

Answer:

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