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
Alja [10]
3 years ago
10

The treasurer of a major U.S. firm has $40 million to invest for three months. The interest rate in the United States is .28 per

cent per month. The interest rate in Great Britain is .32 percent per month. The spot exchange rate is £.639, and the three-month forward rate is £.642. What would be the value of the investment if the money is invested in U.S and Great Britain?
Business
1 answer:
diamong [38]3 years ago
8 0

Answer:

Check the explanation as follows.

Explanation:

a) If it is invested in US

Current= $40 million

Interest rate= 0.28% p.m

Interest for 1 month= $40 million*0.28%= $0.112 million

Interest for 3 months= $0.112*3= $0.336 million

Total value after 3 months= $40 million+$0.336 million = $40336000.

b) If it is invested in Great Britain.

Convert $40 million into Pounds= $40 million*0.639 = Pound 25.56 million

Ivest in Great Britain for 3 months @ 0.32%

Interest per month= 25.56 million*0.32% *3 = 0.245376

Total Pounds after 3 months= Pound 25.805376

Convert into $= 25.805376/0.642 = $40195289.7156

Value if invested in great britain= $40195289.7156

You might be interested in
Nico bought 100 shares of cisco systems stock for $30.00 per share on january 1, 2013. he received a dividend of $2.00 per share
Kamila [148]
Jan. 1, 2013:
Initial investment = (100 shares)*($30/share) = $3,000.

End of 2013:
Dividend collected = ($2/share)*(100 shares) = $200

End of 2014:
Dividend collected = ($3/share)*(100 shares) = $300

End of 2015:
Dividend collected = ($4/share)*(100 shares) = $400

Returns::
 From sales of 100 shares = ($33/share)*(100 shares) = $3,300
 From dividends = 200 + 300 + 400 = $900
 Total returns = 3,300 + 900 = $4,200

Realized returns = Total returns - Initial inestment
                            = 4200 - 3000
                            = $1,200

Answer: $1,200
6 0
3 years ago
Suppose that Dillon derives 40 utils of total utility from eating 5 hotdogs and 42 utils of total utility from eating 6 hotdogs.
gavmur [86]

Answer: The marginal utility is 2

Explanation:

Utility is the satisfaction derived from the consumption of a particular commodity. Total utility is the total satisfaction derived from the consumption of a particular commodity. Marginal utility is the extra satisfaction that a consumer gets from consuming a product. Utility is measured in utils.

Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.

Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.

The marginal utility is the extra utils which will be 42-40 which gives 2 utils.

3 0
3 years ago
Classify each of the following based on the macroeconomic definitions of saving and investment:1. Saving Investment Kyoko borrow
r-ruslan [8.4K]

Answer

The classification is shown below:

Explanation:

The saving refers to the amount i.e above its consumption expenditure let us take an example if an individual salary is $100,000 and its expenditure assumes $50,000 then it saves $50,000 so the $50,000 is the savings.  While the investment is the amount that is spent to buy some assets in terms of building, machinery, home, etc.

So the classification is presented below:

a. Kyoko borrows money to build a new lab for her engineering firm.  = Investment

b. Rina purchases stock in Nano Speck, a biotech firm.  = saving

c. Musashi takes out a mortgage for a new home in Detroit. = investment

d.Jacques purchases a corporate bond issued by a car company. = saving

6 0
3 years ago
CAN SOMEONE PLEASE HELP ME ASAP PLEASE!!!!​
Kobotan [32]
Answer: B

Explanation: There is an unlimited amount of wants but limited amount of resources
5 0
3 years ago
Money aggregates
Allushta [10]

Answer:

Explanation:

* M1 = currency in circulation + checking deposits

* M2= M1 + short term money deposits + 24 hour market funds

a) Deborah CD - M2

b) Van - M1 and M2

c) Carlos savings account - M2

3 0
3 years ago
Other questions:
  • Why is it important to take a college entrance exam
    7·1 answer
  • Greer Company developed the following data for the current year:
    7·1 answer
  • Which of the following explains how can a yield curve be flat or downward sloping if a maturity risk premium exists? a. Investor
    10·1 answer
  • What is the meaning of the X​- and Y​-intercepts? A. These points demonstrate an inefficient use of resources. B. These points s
    7·1 answer
  • When Volvo’s advertising campaign mentions the Volvo CX60 has the highest safety rating of any European sedan, it is using _____
    8·1 answer
  • You just won a state lottery! The lottery offers you a choice: you may choose a lump sum today, or $89 million in 26 equal annua
    6·1 answer
  • Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $8
    11·1 answer
  • We try to determine if we can use educational background, interests, and gender to see if an individual's annual income differs
    10·1 answer
  • Shares with the right vote and dividends are paid as residual claimants against other shareholders​
    5·1 answer
  • Hey I was wondering if someone could make a study guide for my 7th grade final (I finished most of it.) I'll give lots of points
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!