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PilotLPTM [1.2K]
3 years ago
7

ou have just purchased a four-month, $630,000 negotiable CD, which will pay a 4.5 percent annual interest rate. a. If the market

rate on the CD rises to 5 percent, what is its current market value? b. If the market rate on the CD falls to 4.25 percent, what is its current market value?
Business
1 answer:
Serjik [45]3 years ago
8 0

Answer:

Explanation:

first will need to calculate the Fv future value of this CD

Fv = Pv ( 1 + R )^n n = 4 /12 = 0.333333,  r, rate = 4.5/100 = 0.045

Fv = $ 630000 ( 1+ 0.045)^0.33333 = $ 639311.69

a) the current value at 5 % Pv = Fv / ( 1+r)ⁿ

Pv = $ 639311.69  / ( 1.05)^0.3333 = $ 628998.41

b) the current price at 4.25% = $ 639311.69  / ( 1.0425)^0.3333 = $ 630503.20

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kkurt [141]

the board of governors of the federal reserve system

3 0
4 years ago
You are thinking of building a new machine that will sve you 2,000 in the first year the machine will then begin to wear out so
statuscvo [17]

Answer:

The present value of the savings is $22222.22

Explanation:

A perpetuity is an indefinite series of equal payments made after equal intervals of time and for an unlimited period. A growing perpetuity is a kind of perpetuity whose period payments are not equal and they grow(or decline) at a constant rate each period for an indefinite period of time.

The formula for the present value of a growing perpetuity is attached.

The present value of the savings can be calculated as follows,

Present value = 2000 / (0.05 - (-0.04)

Present value = 2000 / (0.05 + 0.04)

Present value = 2000 / 0.09

Present value = $22222.22

3 0
3 years ago
Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for
Delvig [45]

Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved-<u>The statement that best describes Tina's action is -Tina has knowingly engaged in a conflict of interest.</u>

<u></u>

Explanation:

A conflict of interest refers to a situation in which the the individual is benefiting personally from her position and is not thinking about the interest of the other party involved.

In the above question Tina who is a real estate agent is taking advantage of her position to gain personal benefit by buying the property of her client through her son and the party involve is unaware of the intention of tina

<u>So it is appropriate to say that Tina has knowingly engaged in a conflict of interest.</u>

3 0
4 years ago
Jeremy wants to avoid conflict with his new coworkers. he should ______. a. spread gossip with them b. treat them all with respe
Maru [420]

Jeremy wants to avoid conflict with his new coworkers. He should treat them all with respect.

Option B is correct answer.

Conflict in workplace :

Conflict is a difference or disagreement between two or more people. Conflict in the workplace is a normal part of human interaction, yet, handling and resolving conflicts that arise is probably one of the biggest challenges employees face.

What is good conflict in the workplace?

Positive conflict is constructive in nature. It produces new ideas, solves continuous problems, provides an opportunity for people and teams to expand their skills, and fosters creativity. When opposing ideas are explored, a breakthrough of thinking can occur.

Learn more about workplace conflicts :

brainly.com/question/17112762

#SPJ4

8 0
2 years ago
Walden’s family is shopping for a reclining chair. The chair the family decided on has a retail price of $800 plus 5% sales tax
IceJOKER [234]

Just by looking at the answer you can take out D because C already offers no tax and 5% off, do C is better than D, so we only have to do t math for A, B, and CA is 800 plus tax, with $75 back800×1.05 (because it's 5% tax) -75 =$765B is 800×.90 (because 10% off means he's paying 90%)×.05=$756C is 800×.95 (because 5% off means he's paying 95%) =760A=765B=756C=760So B is the best deal

:)

6 0
3 years ago
Read 2 more answers
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