Answer:
FV= $7,435.74
Explanation:
Giving the following information:
Initial investment= $6,400
Interest rate= 1.5%
Number of periods= 10 years
<u>To calculate the value of the account in ten years, we need to use the following formula:</u>
FV= PV*e^(i*n)
FV= 6,400*e^(0.015*10)
FV= $7,435.74
Answer:
The reasonable, probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
Explanation:
Answer:
108,280.22
Explanation:
Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable
U(x) = x^1/4
U^-1(x) = x^4
U^-1(x) === x^4
CE(x) = x^4
Salary Bonus Total income U(x)= x^(1/4) P(x) U(x)*P(x)
80000 0 80000 16.82 1/7 2.4
80000 10000 90000 17.32 1/7 2.47
80000 20000 100000 17.78 1/7 2.54
80000 30000 110000 18.21 1/7 2.6
80000 40000 120000 18.61 1/7 2.66
80000 50000 130000 18.99 1/7 2.71
80000 60000 140000 19.34 1/7 <u>2.76</u>
Sum <u>18.14</u>
CE(x) = 18.14^4
CE(x) = 108280.22
So therefore, the certainty equivalent of this job offer is 108,280.22
Answer and Explanation:
The Preparation of balance sheet is shown below:-
Balance Sheet
Current liability
Long term debt of Current portion $40,100,000
Long term liability
Notes payable $31,900,000
($40,100,000 - $8,200,000)
Total liabilities $72,000,000
So, to reach the total liabilities we simply add the long term debt of current portion with notes payable.
Answer:
$0.79
Explanation:
The Bakery bakes 660 loaves of bread
The cost of baking one bread= $0.46
The total cost of baking all loaves of bread
= $0.46 x 660
=$303.60
The desired mark up is 55% of cost
=55% of $303.60
=55/100 x $303.60
=0.55 x $303.60
= $166.98
Desired revenues = $166.98 +$303.60
=$470.58
The number of sellable breads= 660 - (10% of 660)
=660-66
=594
Desired income is $470.58; sellable output is 594.
price per bread should be
=$470.58/594
=$0.79222
Price per bread = $0.79
