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
If firms in a perfectly competitive market are experiencing economic losses, then as time passes firms ________ and the market _
sukhopar [10]

Answer:

The correct choice is D

6 0
3 years ago
Quality risk refers to the chance that: a.The project relies on developing new or untested technologies. b.The well-being of the
GrogVix [38]

Answer:

The answer is c.The firm's reputation may suffer when the product becomes available.

Explanation:

Quality risk are potential losses due to failure to meet set quality standards.

7 0
3 years ago
Which category (or type) of consumer products are: (1) relatively expensive, (2) infrequently purchased, and (3) buyers are will
artcher [175]

Answer:

consumer products provided are categorized thus:

(1) relatively expensive: a computer system

(2) infrequently purchased:  A car

(3) buyers are willing to expend considerable effort in planning and making purchases: A house

Explanation:

Consumer products are defined as products that satisfy a consumer's wants or needs. There can be convenient, affordable as well as expensive and infrequently purchased.

Consumer goods are final goods sold to consumers for  use. It is usually not used as means for further economic production activity.

Some consumer goods are durable and can last for up to three years or more while some are perishable with expiry dates and must be consumed within a short pace of time.

Finally, consumer goods can be grouped into different categories based on consumer behavior depending on how frequently they are used.

7 0
3 years ago
A credit card had an Apr of 12.87% all of last year and compounded interest daily. What was the credit card's effective interest
alisha [4.7K]

Answer:

13.73%

Explanation:

Effective annual rate = (1 + APR / m ) ^m - 1

M = number of compounding = 365

(1 + \frac{0.1287}{365} )^{365} - 1

(1.000353)^{365} - 1 = 0.1373 = 13.73%

7 0
3 years ago
Illustrate the effects of each of the transactions on the accounts and financial statements of Snipes Company.
Lesechka [4]

Answer:

Snipes Company

Effects of each transaction on the accounts and the financial statements of Snipes Company:

                           Balance Sheet    Income Statement           Statement of

                                                                                                    Cash Flows

      Assets = Liabilities + Equity   Revenue - Expense = Profit

+ $18,250  =     0        + $18,250  + $18,250 - 0            + $18,250

Accounts receivable $18,250 Sales revenue $18,250

      Assets = Liabilities + Equity   Revenue - Expense = Profit

   -$10,000 =     0        - $10,000     0          - $10,000

Cost of goods sold $10,000 Inventory $10,000

      Assets = Liabilities + Equity   Revenue - Expense = Profit

  -$400             0           -$400          0         -$400              -$400 Operating activity

Transportation-out expense $400 Cash $400

Explanation:

a) Data and Analysis:

Accounts receivable $18,250 Sales revenue $18,250

Cost of goods sold $10,000 Inventory $10,000

Transportation-out expense $400 Cash $400

4 0
2 years ago
Other questions:
  • According to revised weight-loss prediction equations, a deficit of 10 kilocalories per day leads to an average weight loss of _
    8·1 answer
  • A.J. is the vice president for Keane Products, a marketing consulting firm. On a business trip to New York City in 2019, he meet
    7·1 answer
  • On the acquisition date, Stryder reported net assets with a book value of $170,000. A total of $10,000 of the acquisition price
    11·1 answer
  • On January 1, 2021, Frontier World issues $40.6 million of 8% bonds, due in 15 years, with interest payable semiannually on June
    13·1 answer
  • An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,100,
    11·1 answer
  • The government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy.
    5·1 answer
  • Which of the following is likely to happen if employees think that their organization is
    12·1 answer
  • A company is a devout follower of Confucian ethics. Hence, it hires people who live by similar principles. What is most likely t
    13·1 answer
  • Rohan wants to buy part of a company, and is interested in stocks. He knows that his favorite company, Apple, is traded on the s
    7·1 answer
  • Over the next few years, many organization will be collecting vast amounts of data on their employees ranging from engagement to
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!