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Irina18 [472]
3 years ago
6

a semiannual interest of 3.5%. Any money he invests would have to be left in the fund for at least five years if he wanted to wi

thdraw it without penalty. a) What is the nominal interest rate on this investment? b) What is the annual effective interest rate? c) If James deposits $8,000 in the fund now, how much will it be worth in five years?
Business
1 answer:
Lemur [1.5K]3 years ago
8 0

Answer:

Results are below.

Explanation:

Giving the following information:

The semiannual interest of 3.5%.

A) We need to calculate the nominal interest rate:

Nominal interest rate= 0.035/2= 0.0175

B) Real interest rate:

Real interest rate= (1.0175^2) - 1= 0.03531

It compounds interest twice a year. Therefore, is higher

C) Investment= $8,000

We will use the following formula:

FV= PV*(1+i)^n

n= 10

i= 0.175

PV= 8,000

FV= 8,000*(1.0175^10)

FV= $9,515.56

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It costs​ Homer's Manufacturing to produce baseballs and Homer sells them for a piece. Homer pays a sales commission of​ 5% of s
Nonamiya [84]

Answer:

$105,075

Explanation:

The computation of the operating income is shown below:

Sales (4 × 69,500)                                              $278,000

Less:Variable costs (0.95 × 69,500 + 5% × 278,000)  $79,925

Contribution margin                                                     $198,075

Less: fixed cost (13,000 + 80,000)                      $93,000

Net operating income                                                 $105,075

We simply deduct the variable cost and the fixed cost from the sales to arrive at the net operating income

4 0
3 years ago
Widget Inc. manufactures widgets. The company has the capacity to produce​ 100,000 widgets per​ year, but it currently produces
gayaneshka [121]

Answer:

$62,100

Explanation:

Given that,

Sales price per unit = $ 40

Variable costs per​ unit:

Manufacturing = $ 23

Marketing and administrative = $ 8

Total fixed​ costs:

Manufacturing = $ 76,000  

Marketing and administrative = $24,000

Total incremental costs:

= Variable manufacturing + Variable marketing and administrative

= (6,900 × $23) + (6,900 × $8)

= $158,700 + $55,200

= $213,900

Incremental income:

= Incremental revenue - Total incremental costs

= (6,900 × $40) - $213,900

= $276,000 - $213,900

= $62,100

Therefore, the operating income increases by $62,100.

7 0
3 years ago
Have Americans always shared the same social and economic goals throughout history?
Elodia [21]

<u>Answer:</u>

<em>Yes, Americans always shared the same social and economic goals throughout history.</em>

<u>Explanation:</u>

The social economic segmentation of the American market. Market segmentation is the movement of distributing a widespread customer or business exchange, ordinarily consists of existent and potential clients, into sub-groups of customers which is recognized as segments which is based on the different type of shared features.

In distributing or segmenting businesses, researchers look for common features such as distributed needs, mutual interests, related lifestyles or even comparable demographic characterizations.

8 0
3 years ago
If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.
Alik [6]

Answer:

The answer is letter C

Explanation:

The quantity of goods or services that can be produced by one hour of work

7 0
3 years ago
Julie wants to create a $5,000 portfolio. She also wants to invest as much as possible in a high risk stock with the hope of ear
svetoff [14.1K]

Answer:

C) Invest $2500 in a risk free asset and $2500 in a stock with beta of 2.0

Explanation:

Stock that is beta 2 means that it is twice as volatile as the whole market. Meaning for example if the market is expected to move by 5% this stock will move 10%. New startup firms that are fast-growing usually have stocks in this category. It is more risky thank normal shares but no too much. We can invest $2,500 here.

We invest the remaining $2,500 in risk-free assets

This is a backup on the chance that the investment on beta 2 stocks do not perform, the risk-free assets will make up for losses.

3 0
3 years ago
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