1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Transactional Leaders motivate employees to perform up to their expectations, while
statuscvo [17]

Answer:

True

Explanation:

Transactional leadership is task and outcome-oriented. Leaders emphasize of achievement of organizational goals and expectations through a reward and punishment system.  Transactional leaders are strict on the use of resources and time, especially in highly specialized projects. This leadership style pays close attention to employees' performance and adheres to the status quo.

Transformational leadership concentrates on increasing employee motivation and engagement. Leaders in this approach attempt to link employee's needs with the organizational values. This leadership method stresses leading by example so that employees can identify with their leader's vision and values.

4 0
3 years ago
Pet Supply purchased $62,800 of fixed assets two years ago. The company no longer needs these assets so it is going to sell them
abruzzese [7]

Answer:

$29,648.12

Explanation:

For computing the net cash flow from the sale, first we have to compute the book value and loss or gain on sale which is shown below:

Book value on selling date = Purchase Cost - Accumulated depreciation for two years

= $62,800 × (1 - 0.2 - 0.32)

= $62,800 × 0.48

=$30,144

Now the loss on sale would be

= Book value - sale price

= $30,144 - $29,500

=$644

So, the net cash flow would be

= Sale value of fixed assets + (loss on sale of fixed assets × firm Tax rate)

= $29500 + ($644 × 23%)

= $29,500 + $148.12

= $29,648.12

5 0
3 years ago
How do I stop payment on brainly.com
Natasha2012 [34]

Contact a moderator. They know what to do.

7 0
4 years ago
Read 2 more answers
Which of the following is a way for college students to watch their favorite tv shows without spending a lot of money
Delvig [45]
Watch online you watch tv for free youtube,hulu,netflix
4 0
4 years ago
Read 2 more answers
Marketers of products such as valentines day chocolates frequently use a ____________ advertising scheduling tactic.
Gennadij [26K]
"Seasonal" advertising scheduling tactic 
8 0
3 years ago
Read 2 more answers
Other questions:
  • In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 19
    12·1 answer
  • Following high-profile corporate scandals including Enron and WorldCom, Congress
    14·1 answer
  • In a command economy, the head of each household makes the fundamental economic choices such as what to produce and how to produ
    9·1 answer
  • Which of the following is the most important thing to remember when looking for a job?
    6·2 answers
  • Based on what you have read and learned, which of the following factors could have contributed to the 1929 Stock Market Crash?
    14·2 answers
  • An accountant agreed to perform a compilation of a company’s financial statements under Statements of Standards for Accounting a
    14·1 answer
  • A company using the periodic inventory system has inventory costing $210 on hand at the beginning of a period. During the period
    5·1 answer
  • Taylor Company began manufacturing operations on January 2, 20X1. During 20X1 Taylor reported pre-tax book income of $150,000 an
    11·1 answer
  • Which of the following statement is false? Group of answer choices Financing activities include the obtaining of cash from issui
    15·1 answer
  • Undistributed profits that have accumulated in the company over time are called.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!