Answer:
(a) gain $1,000.
(b) lose $2,000.
Explanation:
If the investor's contract states that he should sell British pounds for US dollars at an exchange rate of 1.5000 US dollars per pound, he will gain money if the exchange rate falls below that value and lose if it rises above it.
(a) 1.4900
The investor would gain $1,000.
(b) 1.5200
The investor would lose $2,000.
Answer: $900,599.04
Explanation:
The present purchasing power equivalent is the present worth of this investment.
The investment will earn 5% for the first 7 years and then 9% for the next 10.
As there are different rates, the present worth calculation will have to reflect that.
At the end of the first 7 years, the present worth of the invested amount given 10 more years of investing at 9%. The Present worth is;
= 3,000,000(Present worth factor, 9%, 10 years)
= 3,000,000 * 0.4224
= $1,267,200
Then what is the Present worth of $1,267,200 in the current year given that it will be invested for 7 years at 5% to get to $1,267,200.
= 1,267,200 (Present worth factor, 5%, 7 years)
= 1,267,200 * 0.7107
= $900,599.04
Answer:
0.8
Explanation:
Given:
Number of chips contained in each box = 10
Weight of each packet of chips = 3 ounce
Average weight per box = 853 grams
Upper specification limit of the weight = 846 + 12 grams = 858 grams
Lower specification limit of the weight = 846 - 12 grams = 834 grams
Standard deviation, σ = 5 grams
Now,
Capability index =
or
Capability index =
or
Capability index = 0.8