Fred deposited $1,000 into an account that earns 2 percent, compounded annually. How much money will he have in 5 years? A. $100
1 answer:
This situation can be modeled by an exponential equations. Exponential equations typically take the form . In an interest problem, a represents the initial deposit, b is the yearly interest rate, x is the number of years, and y is the total amount of money.
Start by filling out what you know:
a: 1000
b: 1.02 (Fred will have all of the money he had before (1) plus the interest rate (2%=2/100=0.02)
x: 5
y: ?
Now, all you have to do is solve.
1104-->1100
The final answer is B. $1100.
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Answer:
Dividend yield for W = 5%
Dividend yield for X = 15%
Dividend yield for Y = 20%
Dividend yield for Z = 4.6%
Explanation:
For a constant growth stock
If r is made subject of formula; r= = div yield + growth rate
For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%
For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%
For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%
For Stock Z, the price of the stock today is calculated as follows:
Price of the stock today = .
where P2=
Price of the stock today = =109.57
Therefore dividend yield = =
4.6%