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ki77a [65]
3 years ago
9

Joshua needed money for some unexpected expenses, so he borrowed $5,355.26 from a friend and agreed to repay the loan in seven e

qual installments of $1,100 at the end of each year. The agreement is offering an implied interest rate of _________
Joshuaâs friend, Willie, has hired a financial planner for advice on retirement. Considering Willieâs current expenses and expected future lifestyle changes, the financial planner has stated that once Willie crosses a threshold of $1,387,311 in savings, he will have enough money for retirement. Willie has nothing saved for his retirement yet, so he plans to start depositing $25,000 in a retirement fund at a fixed rate of 6.00% at the end of each year. It will take____________for Willie to reach his retirement goal.
Business
1 answer:
konstantin123 [22]3 years ago
8 0

Answer:

10%

25.14 years

Explanation:

A financial calculator can be used to solve these problems

PMT = $-1,100

PV = $5,355.26

FV = 0

N = 7

Compute I = 10%

PMT = $-25,000

FV =  $1,387,311

I = 6%

PV = 0

Compute N = 25.14 years

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You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri
murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

  • Initial investment = -$24.50
  • Cash flow 1 = $1.25 (dividend year 1)
  • Cash flow 2 = $1.35 (dividend year 2)
  • Cash flow 3 = $1.45 (dividend year 3)
  • Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%  

where

  • value 1 = -24.50
  • value 2 = 1.25
  • value 3 = 1.35
  • value 4 = 1.45
  • value 5 = 56.55

7 0
3 years ago
What is a vision statement
FromTheMoon [43]
A Vision Statement is an aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future.
8 0
3 years ago
Read 2 more answers
Consider the following information for a period of years: Arithmetic Mean Long-term government bonds 6.9 % Long-term corporate b
pashok25 [27]

Answer:

the real return is 2.99%

Explanation:

The computation of the real return on long term government bond is shown below:

As we know that

Real rate of return is = [(1 + nominal rate) ÷ (1+inflation rate)] - 1

= [(1 + 0.069) ÷ (1 + 0.038)] - 1

= 2.99%

hence, the real return is 2.99%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0
2 years ago
A soccer team made $575. 75 from selling popcorn at a concession stand during a tournament. The popcorn cost the team $65. 0. Wh
kozerog [31]
The profit made by the team would be $(575.75 - 65.00) that is equal to $510.75.
Divide this by 15 players, we get profit of $34.05 per player.
8 0
2 years ago
Consider the economy of a small country that has capital stock equal to 900 units. It saves 20% of its output with a depreciatio
Ganezh [65]

Answer:

Option (d) is correct.

Explanation:

Given that,

Capital stock = 900 units

Saves 20% of its output

Depreciation rate = 10%

Production function, Y = k^{\frac{1}{2}}

                                     = (900)^{\frac{1}{2}}

                                     = 30 units

Therefore, the savings is as follows,

= 20% of output

= 0.2 × 30 units

= 6 units

Hence, the savings is equal to the investment for this small economy or country.

Investment = 6 units

8 0
3 years ago
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