Explanation:
Problem-Solving Teams is the right one hahahahahahahabaha
Answer:
A. double
Explanation:
Rule 70 is used to calculate the numbers of years it takes for an investment or variable to double in value given a certain growth rate. In this case, the variable is prices and the growth rate is inflation rate. It is calculated by dividing number 70 by inflation rate.
For example;
Assume inflation rate is 6%, the prices will double in ; 70/6 = 11.7 years
And if inflation is 2%, the prices will double in 70/2 = 35 years
Answer:
Real rate of return= 13.7%
Explanation:
<em>The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.
</em>
<em>Dividend is the proportion of the profit made by a company which is paid to shareholders. </em>
<em>Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.
</em>
<em>Therefore, we can can compute the return on the investment as follows:
</em>
The total return = (2.90) + (65.60-60)= 8.5
To determine the real return, we adjust the nominal return for the impact of inflation as follows:
Real total return ($) = 8.5/1.034=8.220
Total return in (%) = (8.220
/60)× 100= 13.7%
Answer:
a. Merina's captal is $160,000. Half would be $80,000.
Entry;
DR Merina, Capital ..................................................................$80,000
CR Wayne, Capital ....................................................................................$80,000
(To record purchase of half of Merina Capital)
b.
DR Cash......................................................................$180,000
CR Wayne, Capital.........................................................................$180,000
(To record Wayne investment)
<u>Working</u>
The current Capital amount is;
= 200,000 +160,000
= $360,000
If Wayne joins and adds to this such that he owns 1/3 then;
2/3x = 360,000
x = 360,000/2/3
x = $540,000
Wayne's share would be;
= 1/3 * 540,000
= $180,000