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Firlakuza [10]
3 years ago
5

Your sister just deposited $14,000 into an investment account. She believes that she will earn an annual return of 10.5 percent

for the next 9 years. You believe that you will only be able to earn an annual return of 9.8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 9 years
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
3 0

Answer:

You must deposit $14,824.07

Explanation:

Giving the following information:

Sister:

Investment= $14,000

Interest rate= 10.5%

Number of years= 9

You:

Investment=?

Interest rate= 9.8%

Number of years= 9

First, we need to calculate the future value of your sister:

FV= PV*(1+i)^n

FV= 14,000*(1.105^9)= $34,386.55

Now, we can determine your deposit:

PV= FV/(1+i)^n

PV= 34,386.55/ (1.098^9)= $14,824.07

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Answer:

perceived behavioral control

Explanation:

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4 years ago
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Yan Yan Corp. has a $10,000 par value bond outstanding with a coupon rate of 4.8 percent paid semiannually and 22 years to matur
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Answer:

$10,856

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.

According to given data

Face value of the bond is $10,000

Coupon payment = C = $10,000 x 4.8% = $480 annually = $240 semiannually

Number of periods = n = 22 years x 2 = 44 period

YTM =  4.2% annually = 2.1% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = $240 x [ ( 1 - ( 1 + 2.1% )^-44 ) / 2.1% ] + [ $10,000 / ( 1 + 2.1% )^44 ]

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4 0
3 years ago
Jill just made a purchase online. The store that she bought from gave her the option to pay with a check, money order, or credit
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Answer:

The credit card is the most effective method of payment.

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The store will not ship the item until the payment is accredited to their account. Because of this, Jill needs to pick the payment  method that have the fastest clear time.

The Check: usually takes about two business days for a deposited check to clear.

Money Order: It depends on the bank. Some banks allow for money orders to be cleared and deposited almost immediately, and some require at least one business day for it to clear.

Credit Card: almost all the time payments can take place immediately.

The obvious choice is Credit Card payment for the instant clear of the funds in the store account.

6 0
3 years ago
Which of the following statements is accurate? Group of answer choices A cost-leadership competitive strategy increases the thre
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Answer:

The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.

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Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.

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