What is NOT a characteristic of critical thinkers?

Orion would like to go on a trip to Ireland in two years. He wants to have $3,000 for the trip, so he is planning to invest mone

denis-greek [22]

Answer:

The answer is: If Orion wants to have $3,000 in two years, he must invest $2,572.02 today

Explanation:

To determine how much money Orion has to invest today in order to have $3,000 in two years, considering he will get an 8% compound interest rate, we can use this formula:

P = FV / (1 + r)²

Where:

FV = $3,000
r = 8%

P = $3,000 / (1 + 8%)²

P = $3,000 / 1.1664

P = $2,572.02

4 0

3 years ago

At the end of a full year mary garber had $6248.95 in her saving account. If the rate of interest was 12.253%, how much money di

allochka39001 [22]

Answer:

$5,566.84

Explanation:

to determine the amount of money that Mary had in her account at the beginning of the year we can use the resent value formula:

present value (PV) = future value (FV) / (1 + interest rate)ⁿ

where:

FV = $6,248.95
interest rate = 12.253%
n = 1

PV = $6,248.95 / (1 + 12.253%) = $6,248.95 / 1.12253 = $5,566.84

4 0

3 years ago

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance

kondor19780726 [428]

Explanation:

The computation is shown below:

1. Average operating assets is

= (Opening operating assets + closing operating assets) ÷ 2

where,

Opening operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

=$2,020,000 - $180,000 - $250,000

= $1,590,000

And, the closing operating assets is

= Total assets - Land (undeveloped) - Investment in Buisson, S.A

= $2,100,000 - $170,000 - $280,000

= $1,650,000

So, average operating assets is

= ($1,590,000 + $1,650,000) ÷ 2

= $1,620,000

2.

Margin = Net operating income ÷ Sales

= $405,000 ÷ $4,050,000

= 0.1 or 10%

Turnover is

= Sales ÷ Average operating assets

= $4,050,000 ÷ $1,620,000

= 2.5

Return on Investment = Margin ×Turnover

= 0.1 × 2.5

= 0.25 or 25%

3. Residual Income = Net operating Income - (Average operating assets × Minimum required rate of return)

= $405,000 - ($1,620,000 × 15%)

= $405,000 - $243000

= $162,000

3 0

3 years ago

The full-employment level of employment is: A. the level of employment when aggregate demand is equal to short-run aggregate

natita [175]

Answer:

The correct answer is letter "C": the equilibrium level of employment reached after all wages and prices have fully adjusted.

Explanation:

Full Employment is a situation in which all available human resources are utilized at their highest degree. Each worker is in a job where that worker has his or her more productive use and benefit to the aggregate economy. Full employment is usually achieved in a robust economy when employment reaches its equilibrium point after wages and price adjustments, but can potentially be achieved in any economy.

5 0

3 years ago

Suppose that on Jan. 1 2018 you bought a bond at par with the following characteristics: Face Value = $20,000 Coupon rate = 4% M

tatuchka [14]

Answer:

* How much did you pay for the bond?

20,000

* Rate of return if you hold the bond for a year and then sell it, assuming the market interest rate rises by 1 percentage point from the date when you bought the bond is:

3.05%

Explanation:

Because the bond is bought at par, the amount paid for the bond will be equal to the face value of the bond or $20,000.

<u>* Rate of return if you hold the bond for a year and then sell it, assuming the market interest rate rises by 1 percentage point from the date when you bought the bond is: 3.05% which is calculated as below:</u>

+ Price of the bond of the time of selling is equal to the sum of present value of two future cash flows happening in 1 year time from the bond, discounting at the current market rate which is 5%, which are:

. Bond's face value: $20,000 in one-year time => PV = 20,000/1.05 = 19,047.62

. Coupon: 20,000 * 4% = $800 in one-year time => PV = 800/1.05 = $761.90

=> Price of the bond = 19,047.62 + 761.90 = $19,809.52

+ Total receipt from holding the bond for one year = Selling price of the bond + coupon received for one-year holding = 19,809.52 + 800 = $20,609.52

=>Rate of return = Total receipt from holding the bond for one year/ the amount paid for the bond at the beginning = 20,609.52 / 20,000 = 3.05%

4 0

3 years ago