$100,000 was allocated by a stockbroker to a portfolio yielding 4% annually compounded. If no withdrawals are taken, there will be $117,352 left in the account after four years.
Given a certain rate of return, present value (PV) is the current value of a future financial asset or stream of cash flows. A discount rate or the interest rate that could be obtained through investment is applied to the future value to get the present value.
According to the continuously compounded interest formula,
FV = PV 
Here,
Present Investment Value, or PV
the interest rate, I
T = time in years
So,
In light of the specified
PV = $ 100,000
I = 4% = 0.04
t = 4 years
Hence
FV stands for "Final Investment Value"
Then,
FV = 100,000 * e⁰.⁰⁴ˣ⁴
FV = 100,000*e⁰.¹⁶
FV = 100,000 * 1.173510871
FV = 117351.0871
FV = 117351
Hence
The balance in the account after four years was = $117,352
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Based on the base year used by Cruzville economists to calculate inflation, the following at the CPIs:
- 2013 = 100
- 2014 = 112
- 2015 = 130
<h3>What is the CPI over the years?</h3>
As 2013 is the base year, the CPI will be 100 because all base years are 100 for CPI purposes.
The CPI in 2014 is:
= 112
This is due to an inflation rate of 12%.
An inflation rate of 16.1% is the reason why the CPI in 2015 is 130.
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Answer:
11.11%
Explanation:
For computing the annual percentage rate (APR) we need to apply the RATE formula i.e to be shown in the attachment below.
Given that,
Present value = $5,000 × (100 - 10%) = $5,000 × 90% = $4,500
Future value or Face value = $5,000
PMT = 0
NPER = 1
The formula is shown below:
= -Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the formula, the APR is 11.11%
Answer:
The day the property was contributed.
Explanation:
A holding period refers to the time period an asset or investment is held by a business or an investor, or the period between when the asset is bought and when it is sold.
The character or type of an asset contributed to a partnership in exchange for a capital and profits interest determines the beginning of the partner’s holding period as follows:
1. If the capital asset or property contributed by the partner has been used in a trade or business just before it is contributed to the partnership, the holding period of the partner for the partnership interest will include the holding period of the capital asset or property contributed.
2. If the capital asset or property contributed by the partner is exchanged for money, capital or other property, the beginning of the holding period of the partner in the day of acquisition of the interest, i.e., the day the property was contributed.
Since the question states that the property is contributed to a partnership in exchange for a capital and profits interest, rule number 2 above therefore applies. That is, the partner’s holding period begin for the partnership interest the day the property was contributed.
Answer:
The correct answer to the following question will be "keeping the product line since they would lose an extra $40000 if they dropped".
Explanation:
Keep Drop
Loss $100000 (given) -
Fixed asset loss - (300000-160000)
Loss $100000 140000
If dropped, so the $40000 damage would be included. Such that the correct approach is "keeping the product line since they would lose an extra $40000 if they dropped."
