Answer:
Final Value= $4,272.13
Explanation:
Giving the following information:
Felipe deposited 4000 into an account with 2.2% interest, compounded quarterly.
First, we need to calculate the quarterly interest rate:
Interest rate= 0.022/4= 0.0055
Now, we can calculate the final value:
FV= PV*(1+i)^n
FV= 4,000*(1.0055^12)= $4,272.13
Answer:
Read the explanation below
Explanation:
Dollar-cost averaging is based on the belief that prices of stock fluctuate around a normal level. Without this notion, it will not be possible to determine what can be seen as high or low now compared to the future.
The benefits of Dollar Cost Averaging attracts investors to employ. These benefits include:
1. It contributes on a regular basis to portfolios of investment.
2. The problem of market timing is eliminated especially for investors do not have time to track the market regularly or who lack the understanding of the market.
3. The cost basis to consumers on stocks whose values decline are is reduced.
4. It is easy to set up and not expensive especially for investors with no huge amount of money to invest. Like the example in the question, it easier for a salary earner to invest $500 monthly than investing $5,000 in a day.
Despite these advantages, dollar-cost averaging has its own disadvantages, and these include:
1. It has been found out in different studies that investor that can time the market correctly and invest a lump sum amount receive a higher return in the long run than what dollar-cost averaging can fetch.
2. The transaction costs paid by the investors significantly increased because of more number of different transactions when brokerage fee is high.
I wish you the best.
Answer:
Annual interest rate= 3%
Explanation:
Giving the following information:
Present value= $9,850
Future value= $10,000
Number of days= 182
<u>First, we need to calculate the daily interest rate. We will use a financial calculator (the formula is incredibly difficult to use):</u>
<u></u>
Function= CMPD
n= 182
I%= SOLVE = 0.0083
PV= 9,850
FV= -10,000
<u>Now, the annual interest rate:</u>
Annual interest rate= 0.0083*365= 3.02 = 3%
Answer and Explanation:
The journal entries are given below:
On Apr. 30
Bonds payable $124,000
Loss on redemption of bonds( bal fig) $18,228
Discount on Bonds payable($124,000 - $111,972) $12,028
Cash ($124,000 × 1.05) 1,30,200
(Being redemption of bonds at 105 is recorded)
On Jun. 30
Bonds payable $162,000
Premium on Bonds payable($174,960 - $162,000) $12,960
Gain on redemption of bonds ( bal fig) $14,580
Cash($162,000 × .99) $160,380
(Being redemption of bonds at 98 is recorded)
The euro is the common currency across Europe.
