Ask question

Ask question

All categories

3 years ago

10

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? A) Com

pounding 1 time a year B) Compounding 4 times a year C) Compounding monthly or D) Compounding daily

1 answer:

Allisa [31]3 years ago

4 0

D) Compounding daily
................

You might be interested in

While developing a new product line, Cook Company spent $3 million two years ago to build a plant for a new product. It then dec

Mariulka [41]

Answer:

C

Explanation:

This is an example of an externality, because the very existence of the building affects the cash flow for any new project that Rowell might consider.

3 0

3 years ago

If d0 = $1.75, g (which is constant) = 3.6%, and p0 = $40.00, what is the stock's expected total return for the coming year?

Nookie1986 [14]

Answer:

The answer is <u>"a. 8.13%".</u>

Explanation:

Given that;

d0 = $1.75

p0 = $40.00

g = 3.6% = 0.036

By using the formula;

Price of the stock = (Dividend this year)(1+g) ÷ (r - g)

By putting the values;

40 = (1.75)(1+0.036) ÷ (r - 0.036)

r - 0.036 = (1.75)(1.036) ÷ 40

r - 0.036 = 1.813 ÷ 40

r - 0.036 = 0.045325

r = 0.045325 + 0.036

r = 0.081325 = 0.081325 x 100

<u>r = 8.13%</u>

7 0

3 years ago

Read 2 more answers

The contract Jack is signing has a clause that protects his assets from a deficiency judgment in case of foreclosure. What is th

charle [14.2K]

Answer:

exculpatory clause

Explanation:

Exculpatory clause in contracts is a clause that protects the person issuing it from liabilities of damages to an asset that may not be in their possession or out of their control. It prevents one party from the holding the other liable for damages to an asset during the execution of a contract. This is what Jack has done to protect himself from the liabilities that may result from any damages during the contract.

4 0

3 years ago

An investment offers $6,700 per year, with the first payment occurring one year from now. The required return is 6 percent. a. W

oksian1 [2.3K]

Answer:

Ans.

a) The value today if the payments occured for 15 years would be:$65,072.07

b) The value today if the payments occured for 40 years would be: $100,810.19

c) The value today if the payments occured for 75 years would be: $110,254.18

d) The value today if the payments occured forever would be: $111,666.67

Explanation:

Hi, except for c) (we´ll talk about later about c.) the equation that we need to use is:

$PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$

Where:

A = Annuity (yearly payment, in our case $6,700)

r = Discount rate (in our case 6% or 0.06 for the formula)

n = Period of time (for a) is 15, b) is 40, c) is 75)

So, let´s solve a)

$PresentValue=\frac{6,700((1+0.06)^{15}-1) }{0.06(1+0.06)^{15} } =\frac{6,700(1.396558193)}{0.143793492} =65,072.07$

For b) is:

$PresentValue=\frac{6,700((1+0.06)^{40}-1) }{0.06(1+0.06)^{40} } =\frac{6,700(9.285717937)}{0.617143076} =100,810.19$

For c) is:

$PresentValue=\frac{6,700((1+0.06)^{75}-1) }{0.06(1+0.06)^{75} } =\frac{6,700(78.05692079)}{4.743415247} =110,254.18$

Finally, for d) which is if the payments were made forever, the formula would be:

$PresentValue=\frac{A}{r}$

So the present value if this payments were made forever would be:

$PresentValue=\frac{6,700}{0.06}= 111,666.67$

Best of luck.

7 0

3 years ago

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale

tensa zangetsu [6.8K]

The answer is correct for which entry is required to record the payment for Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30 is C. Debit Cash $936; debit Sales Discount $18; credit Accounts Receivable $954.

8 0

3 years ago

Read 2 more answers