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Slav-nsk [51]
3 years ago
15

Newman Finley wishes to become a millionaire. His money market fund has a balance of $296,375 and has a guaranteed interest rate

of 6%. How many years must Newman leave that balance in the fund in order to get his desired $1,200,000?
Business
1 answer:
Rus_ich [418]3 years ago
3 0

Answer:

Investment period = 24 years

Explanation:

The total amount that an investment made today would become  if invested at a particular rate for certain number of years is known as the future value.

The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.

FV = PV × (1+r)^n

1,200,000 = 296,375 × (1.06)^(n)

(1.06)^(n) = 1200000/96,375

(1.06)^(n) =4.048924504

find the log of both sides

n log 1.06= log 4.048924504

n= log 4.048924504/log 1.06

n = 24

It will take 24 years

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Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 110 − 100. Dud
Aneli [31]

Answer:

a. Long

b. $375.00

Explanation:

a. If interest rates decrease over the period of investment, Treasury bond prices will increase. Thus, Dudley Savings Bank should take a long position in the futures contracts on the Treasury bonds. As T-bond prices go up, so will T-bond futures prices.

b. Given a long position:

Net profit = Sale price of futures − Purchase price of futures

= $107,687.50 − $107,312.50 = $375.00

Purchase price of futures = 107 − 100 = 107 10/32% × $100,000 = $107,312.50

Sale price of futures = 107 − 220 = 107 22/32% × $100,000 = $107,687.50

Explanation:

3 0
3 years ago
Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year ma
mr Goodwill [35]

Answer:

7.74%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $1,180

Assuming figure - Future value or Face value = $1,100  

PMT = $105

NPER = 5 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the answer would be 7.74%

7 0
3 years ago
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Ho
Brrunno [24]

Answer:

37.7 hours

Explanation:

Calculation to determine what The delivery cycle time was:

Using this formula

Delivery cycle time=Wait time +Throughput time

Where,

Wait time=28.0

Throughput time=Process time 1.0+ Inspection time 0.4+ Move time 3.2 +Queue time 5.1=9.7

Let plug in the formula

Delivery cycle time=28.0+9.7

Delivery cycle time=37.7

Therefore Delivery cycle time was 37.7

7 0
3 years ago
Why is communication believed to be the foundation of covenantal relationships?
dalvyx [7]
<span>Communication is believed to be the foundation of covenantal relationships because it is the only way to share our ideas and our feelings with one another. In a relationship, two people work together to make the other better. Through difficult times and accomplishments the couple grows together and the goal is to make the other person a better version of themselves. Communication allows the couple to explore these moments fully so that they can each be understood and have the opportunity to understand.</span>
3 0
3 years ago
A food warehouse store got a very good buy on a brand of frozen orange juice and, rather than maintain it as extra inventory, pr
choli [55]

Answer:

(d) Sales promotion

Explanation:

Sales promotion is one level or kind of showcasing pointed either at the buyer or at the dissemination channel.  

It is utilized to present new item, get out inventories, pull in rush hour gridlock, and to lift deals incidentally.  

It incorporate challenges, coupons, complimentary gifts, misfortune pioneers, purpose of procurement shows, premiums, prizes, item tests, and discounts. Deals advancements can be aimed at either the client, deals staff, or dissemination channel individuals

4 0
3 years ago
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