Answer:
a. In this case, its goes for open market sales operations, This is because to increase the value of federal funds, the Fed has to reduce the money supply
b. In this case, its goes for open market purchase operation. This is because an increase in the differential between the discount rate and federal funds rate would encourage the depositary institutions to borrow money from Fed, thereby increasing the supply of money
Personal finance is a term that covers your money management as well as saving and investing. These contain the budget, banking, insurance, mortgage, investments and retirement, tax, and estate planning. The term often directs to the entire industry that delivers financial services to people and homes and recommends financial and investment options.
Personal dreams and wishes - and plan to fulfill those essentials in your financial obstacle - also influence how you get the above. In order to use your earnings and savings most, it is necessary to be economical. Personal finance helps you learn the difference between good and bad suggestions and make intelligent financial conclusions.
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Answer:
the cost for the running the boarding school for 600 students is $61000
Explanation:
Let x be the constant cost and y be the variable cost . then according to the given condition
total cost=<em><u> x +25y= $3500-------1</u></em>
<u><em>x +50y= $6000----------2</em></u>
Subtracting 1 from 25y= 2500
<u><em>y= 2500/25= $100-----------3</em></u>
<em><u>Putting the value of y from 3 in 1 </u></em>
x+ 25(100)= 3500
x+ 2500= 3500
<u><em>x= 1000$---------4</em></u>
<u><em>Putting the value of y from 3 in 2</em></u>
x+ 50(100)= 6000
x+ 5000=6000
<u><em>x= 1000$----------5</em></u>
<u><em>Putting the values of x and y in 1 for 600 students</em></u>
1000+ 600(100) =1000+ 60000= $61000
Answer:
a. 10.04%
b. $82.78
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
a. Expected rate of return or market capitalization = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 5% + 0.72 × (12% - 5%)
= 5% + 0.72 × 7%
= 5% + 5.04%
= 10.04%
The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.
b. Now the intrinsic value would be
= Expected dividend ÷ (Required rate of return - growth rate)
= $5 ÷ (10.04% - 4%)
= $5 ÷ 6.04%
= $82.78
Answer:
Interest saved by the couple = $3497.12
The answer and procedures of the exercise are attached in the following archives.
Explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
