A comparable property sold 10 months ago for $98,500. If the appropriate adjustment for market conditions is 0.30% per month (wi
1 answer:
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Answer:
After 14 years, the compounded value of the invested amount = $733,200.27
Explanation:
What the question is asking us to find is the future value of an amount that is invested over a period of 14 years, compounded at 15% semiannually.
The formula is:
where ;
FV = Future value
PV = present value (principal)
i = nominal interest
n = compounding frequency in a year
t = total number of years.
Note: for investments that are compounded annually, n = 1, because compounding is once in a year, for those compounded semiannually, n=2, because compounding is twice in a year, for compounding done quarterly, n = 4 because there are four quarters in a year and so on.
Putting, the values into the equation above;
= $733,200 (to the nearest dollar)
Answer: -2.55%
Explanation:
The formula to calculate Forward Rate is:
Forward Rate = Spot rate X
where is the Interest rate of the overseas country and
is the Interest rate of the domestic country
$0.0052 = 0.005 X
$0.0052 X = 0.005 X 1.0135
$0.0052 X = 0.0050675
=
= 0.9745 - 1
= - 0.02548
The yield on 180-day risk-free securities in the United States is -2.55%