Answer: $1,626
Explanation:
A Mortgage payment is a type of annuity so the Present Value of an Annuity formula can be used to calculate this.
The Period is 12 months so adjustments need to be made to the interest rate and the period.
Period.
= 25 years * 12 months
= 300
Interest Rate
= 5.89/12
= 0.4908%
Present Value of the Annuity is the mortgage amount of $255,000
Present Value of Annuity is,
P = PMT ( 1 - ( 1 + r)^-n) / r
Where,
P = Present Value
PMT = payment per period
r = Interest rate
n= no. of periods
255,000 = PMT ( 1 - (1+0.4908%)^-³⁰⁰) / 0.4908%
255,000 = 156.8456 PMT
PMT = 255,000/156.8456
= $1,625.80
= <u>$1,626</u>
Answer and Explanation:
This is an example of Simpson’s paradox
The statement in the question is : FALSE
<h3>What is a step-variable cost ?</h3>
A step variable cost is a type of cost that varies with the level of activity, but is incurred at discrete points and it involves large changes. Hence If the steps in a step-variable cost behavior pattern are large, the step variable cost function cannot be approximated by a variable cost function without loss in accuracy because the variable cost behavior pattern is directly proportional to the variable cost function.
Hence we can conclude that The statement in the question is : FALSE
Learn more about step-variable cost : brainly.com/question/17061986
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Answer:
b. Coefficient of variation; beta
Explanation:
In the case when the single asset would be held in isolation so here the best measure would be coefficient of variation
And, on the other hand the asset that held in diversified portfolio so here the beta would be considered as a best measure of risk
Also the asset held in diversified portfolio would be less risky as compared with the similar asset held in isolation
Answer:
68.57%
Explanation:
Recall that rate of return is the net gain or net loss that an investment yield over a given period of time expressed as a percentage of the initial investment cost.
Given that
Initial investment cost = 5250
Total returns or revenue = cash flow (year 1 + year 2 + year 3 + year 4)
= 750 + 1000 + 850 + 6250
= 8850.
Therefore,
rate of returns = (current value - initial value) ÷ initial value
= 8850 - 5250 ÷ 5250
= 3600 ÷ 5250
= 0.6857
= 68.57%
