Answer:
9.749 years
Explanation:
Given that :
Principal, P = 20,000
Total investment A = 35000
Investment 1:
P = $10,000
Compounded continuously at r = 5.2% = 0.052
A = Pe^rt
Investment B:
P = $10,000
Compounded annually at r = 6.4% = 0.064
A = P(1 + r)^t
Hence, final amount, A on both investment = 35000
A = Pe^rt + P(1 + r)^t
35000 = 10000e^0.052t + 10000(1 + 0.064)^t
Divide through by 10000
3.5 = e^0.052t + 1.064^t
t = 9.749123
t = 9.749 years
Answer:
c. Between 9 and 10 years
Explanation:
The computation of the time period is shown below:
Future value = Present value × (1 + interest rate)^number of years
$4,000 = $2,000 × (1 + 7.5% ÷4)^time period ×2
After solving this
The time period is
= 9.3283
Hence, it lies between the 9 and 10 years
Therefore the correct option is c.
And all other options are wrong.
A contract clause which specifies the amount of damages to be paid in the event of a breach is called C. a liquidated damages clause.
A contract clause is a specific section that is added into a clause and addresses specific subject matters or topics. These clauses are normally added to make sure each section understands and performs their duties.
Answer:
8.934%
Explanation:
r(m) = r(f) + [b × r(p)]
r(m) = expected return = 9.975%
r(f) = risk free rate = 2%
b = beta = 1.45
r(p) = risk premium
so,r(p) = (9.975 - 2) ÷ 1.45
= 5.5%
for portfolio,
r(m) = r(f) + (b1 × w1 + b2 × w2) × r(p)
b1 = 1.45, w1 = (5 ÷ 5.5), b2 = 1.25, w2 = (0.5 ÷ 5.5)
r(m) = 2 + [1.45 × (5/5.5) + 1.25 × (0.5/5.5)] + 5.5
= 2 + 1.32 + 0.114 + 5.5
= 8.934%
Answer:
D) 19,520
Explanation:
The company uses a last-in-first-out (LIFO) inventory flow assumption. Given these facts, the number of units of product in the beginning inventory last year must have been:D) 19,520
