Answer:
$100
Explanation:
Simple interest is calculated using the formula
I = P x R x T
where I = interest
P= principal amount, $1,250
R= interest rate , 8% or 0.08
T = Time, one year
The interest troy will earn is
I= $1250 x 0.08 x 1
= $100
Troy will earn $100 as interest
Answer:
scheduling technique
Explanation:
Project Evaluation Review Technique and Critical Path
Method (CPM) are scheduling techniques used to plan, schedule,
budget and control the many activities associated with projects.
Projects are usually very large, complex, custom products that
consist of many interrelated activities to be performed either
concurrently or sequentially.
1.A negotiable instrument can function as a substitute for cash.- TRUE
2. a time draft is payable at a definite future time. TRUE
3. promissory note payable to "bearer" is not negotiable. - FALSE (It is negotiable)
4. A certificate of deposit is a type of note. - TRUE
5. A signature can consist of a word, mark, or symbol. - TRUE
6.An instrument that promises to pay "in gold" can be negotiable.- FALSE ( Anything payable in the form of a commodity like gold cannot be negotiable)
Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
Answer:
Option (A) is correct.
Explanation:
Given that,
After-tax IRR on total investment in the property = 9.0%
Before-tax IRR on equity invested = 17%
Before-tax IRR on total investment in the property = 12%
t: Marginal tax rate = 0.40
Break Even Interest rate (neither favorable nor unfavorable):
= After tax IRR on total investment ÷ (1 - Tax rate )
= 9% ÷ (1 - 0.40)
= 9% ÷ 0.60
= 15%
