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sleet_krkn [62]

3 years ago

9

what would happen to the buying power of you investment after one year if your rate of return was 8% and the rate of inflation w

as 3%?

1 answer:

fgiga [73]3 years ago

7 0

One year is 365 days plus leap year so 366 times 8% or 0.08 times 3% or 0.03 to get ur answer

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Thomas Partner purchased shares of Bad Wolf Industries on the open January 2 at $116.26 per share. He earned a dividend of $0.41

Hunter-Best [27]

Answer:

time weighted rate of return: 5.36%

Explanation:

We have to calculate the holding rate of return for each month and then mutiply them together:

<u>January:</u>

(119.90 - 116.26)/116.26 = 0.031309135

<u>February:</u>

(123.58-119.9)/119.9 = 0.030692244

<u>March:</u>

(0.41 + 122.08-123.58)/123.58 = - 0.0088194

(1 + Jan) (1 + Feb) (1 + March) = 1.053587547

now we subtract one to get the wanted rate:

time weighted rate of return: 5.36%

3 0

3 years ago

Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this in

ozzi

Answer:

6.83%

Explanation:

The computation of the accounting rate of return is shown below:

As we know that

Average accounting rate of return = Average annual operating income ÷ Initial Investment

where,

Average annual operating income is

Year 1 net cash inflow $320,000

Year 2 net cash inflow $280,000

Years 3-10 ($230,000 × 8) $1,840,000

Total net cash flows $2,440,000

Less: Total depreciation ($1,450,000)

$990,000

Divided it by years of life ÷ 10 years

Average annual operating income $99,000

So,

Average accounting rate of return is

= $99,000 ÷ $1,450,000

= 6.83%

6 0

3 years ago

3)You have won a contest and are allowed to choose between two prizes. One option is to receive$200 today and another $200 one y

vekshin1

Answer:

C)25 percent

Explanation:

Present value is the sum of discounted cash flows.

The interest rate where the present value of the two two prizes would be identical can be found using a financial calculator and trial and error method.

Option A :

Cash flow for year zero = $200

Cash flow for year one = $200

Present value when I is 0 = $400

Present value when I is 5 = $390.48

Present value when I is 10 = $381.82

Present value when I is 25 = $360

Option B

Cash flow in year 0 =$100

Cash flow in year 1 = $325

Present value when I is 0 = $425

Present value when I is 5 = $409.52

Present value when I is 25 = $360

Present value when I is 10 = $395.45

It can be seen that it's at 25% that both cash flows would be equal.

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

8 0

3 years ago

Sinking fund bonds: A. Are bearer bonds. B. Are registered bonds. C. Require equal payments of both principal and interest over

monitta

Answer:

The answer is D.

Explanation:

Sinking funds require the issuer(borrower) to set aside assets at specified amounts to retire the bonds at maturity. Sinking fund helps the issuer to secure a bond with lower yield.

An agreed amount is deposited at an agreed period (e.g yearly) so as to pay of the par value or principal value at maturity.

6 0

3 years ago

i need help ASAP!!!! Generally, parties of 8 or more require many restaurants to include gratuity of 18% on the check before pre

igor_vitrenko [27]

Answer:

b)$34.45

Explanation:

Gratuity is similar to a service charge.

If the bill is $191.40, and gratitude of 18 percent will be added.

The actual gratitude amount that will be added will be equal to

18% of the $191.40 bill.

=18/100 x $191.40

=0.18 x 191.40

= $34.45

4 0

3 years ago