Answer:
3. Expected inflation rate
Explanation:
To determine the amount of money that the medical student must invest today to meet this capital need, she needs to know the current cost of medical equipment to have the the amount she needs to be able to buy the equipment. Also, she has to know the assumed rate of return to determine the amount of interest she will receive as the formula to calculate the money she needs today is:
PV= FV/(1+r)^n, where:
PV= present value
FV= future value
r= rate of return
n= number of periods of time
According to this, the answer is that the option that she doesn't need to find the amount of money that must be invested today to meet this capital need is the expected inflation rate as the formula to calculate the present value considers the amount she will need, the rate of return and the period of time.
Answer:
D) the closing prices of bonds in the index.
Explanation:
The Dow Jones Corporate Bond Index is collection of 96 corporate bonds that are equally weighted. It measures the returns on corporate shares and pricing is done daily.
Investors study this index to get insights from trends noticed. These insights are used to make informed decisions on the best investment to make.
The Dow Jones Corporate Bond index displays daily closing balances of the 96 corporate bonds that make up the index. These closing balances are then compared to historical data.
Answer:
His meal cost him $ 189.306
Explanation:
APR = 20% = 0.2
APR charged per month = 0.2 / 12 = 0.0167
cash advance = 3.5 % = 0.035
cost of meal = $ 180
calculation of interest fees = $ 180*0.0167 = $ 3.006
Fees paid for cash advance =$ 180 * 0.035 = $ 6.3
Total cost of meal = Normal meal cost + Interest fees +Cash advance fees
total cost of meal = $180 + $3.006 + $6.3 = $ 189.306
Answer:
$32,990
Explanation:
The retained earnings is the accumulated balance of the net income/loss of n entity over time less the dividends paid over the years. Mathematically,
Opening retained earnings + net income - dividend paid = closing retained earnings
Both the retained earnings and common shares are elements of the owners equity.
$29,240 + $6,015 - $2,265 = ending retained earnings
Ending retained earnings
= $32,990
Answer:
36.26%
Explanation:
Simple rate of return:
return/investment
<u>return:</u>
In this case, it will be the cost saving for the new machine: 161,000
<u>investment</u>
We will decrease the investment by the recovery from the old machine.
468,000 new machine - 24,000 salvage value of new = 444,000
<u>Then, proceed to calculate:</u>
161,000/444,000 = 0.3612 = 36.26%
Consideration:
Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.