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3 years ago

Rebecca would like to set up an account to supplement her parents' retirement income for the next 15 years.

Business

1 answer:

vova2212 [387]3 years ago

5 0

Answer:

Explanation:

a.)

This is an annuity type of question. Using a financial calculator, input the following to find the PV of the Ordinary annuity;

Total duration; N = 15*12 = 300

Monthly rate; I/Y = 7.2%/12 = 0.6%

One-time future cashflow; FV = 0

Recurring monthly payment; PMT = 150

then compute present value; CPT PV = $20,845.24

b.) This is an <em>Annuity Due </em>type of question since the recurring monthly payment occur at the beginning of the month.

Using a financial calculator, change the mode to "BEG" and input the following to find the PV of the annuity due;

Total duration; N = 15*12 = 300

Monthly rate; I/Y = 7.2%/12 = 0.6%

One-time future cashflow; FV = 0

Recurring monthly payment; PMT = 150

then compute present value; CPT PV = $20,970.31

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Four years ago, a popular sandwich company used to sell 12-inch roast beef subs for only $5.49, but the same product now sells a

Ainat [17]

Answer:

6.22%

Explanation:

Price of sandwich four years ago, Present value = $5.49

Price of sandwich, Future value = $6.99

It is given that the inflation has been assumed to be constant over these four years.

Inflation rate refers to the rate at which prices of the good increases from the previous level. In a simple language, if there is a rise in the price of the goods then this economy is experiencing a inflation.

Inflation rate:

$=(\frac{Future\ value}{Present\ value}) ^{\frac{1}{n} } -1$

$=(\frac{6.99}{5.49}) ^{\frac{1}{4} } -1$

= 1.0622487 - 1

= 0.0622487 or 6.22%

Therefore, the inflation rate is 6.22%

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3 years ago

Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the

KATRIN_1 [288]

Answer:

Cost of Equity 16.33%

Explanation:

We solve for this using CAMP:

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.0387

premium market = (market rate - risk free) 0.0903

beta(non diversifiable risk) = 1.38

$Ke= 0.0387 + 1.38 (0.0903)$

Ke 0.16331 = 16.33%

We are given with the risk free rate of return and the market premium already so we just need to plug into the formula to solve for the expected return on the stock.

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3 years ago

Quanti Co., a calendar year taxpayer, purchased small tools for $5,000 on December 21, 2016, representing the company's only pur

iris [78.8K]

Answer:

1 and a half months worth of depreciation

Explanation:

The advantage of starting to depreciate an asset purchased on December is that next year you will be able to depreciate it for a full year under MACRS. Generally, when you purchase an asset, you have to use the half year convention and your depreciation expense for the first year will be low compared to the second year. But if you start depreciating your asset in the current year, even if you purchased it on December and the depreciation expense is not that significant, the next year you will be able to depreciate it at the second year rate.

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3 years ago

Exotech has an inventory turn ratio of 60 with $50 million in annual sales, and an average inventory of $250,000. What is Exotec

Goryan [66]

Answer:

$15 million

Explanation:

Data provided in the question:

Inventory turn ratio = 60

Annual sales = $50 million

Average inventory = $250,000

Now,

we know,

Inventory turn ratio = ( Cost of goods sold ) ÷ ( Average inventory )

thus,

60 = ( Cost of goods sold ) ÷ $250,000

Cost of goods sold = 60 × $250,000

Cost of goods sold = $15,000,000 or $15 million

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3 years ago

Review each of the investment opportunities provided by Earll Investments and Pima Financial Trading. In a three paragraph essay

quester [9]

All investment strategies do involve some level of risk. Considering the evidence at my disposal, the first investment is made in the investment opportunity that is most likely to be fake.

The real dangers of investing with this company are those associated with land, stocks, goods, or legal disputes.

What potential profits may I expect from my investment?

The investment's projected return, or what we refer to as the potential return, has the potential to generate significant profit or loss.

Keep in mind that it is regarded as a type of computed metric that enables investors to determine the possible profit an investment may receive; in the example above, it may result in greater profit or loss.

Learn more about investments here;

brainly.com/question/28761792

#SPJ1

5 0

1 year ago