Answer:
n= 39.49 years
Explanation:
Giving the following information:
Present value (PV)= $2,600
Future value (FV)= $4,375
Interest rate (i)= 0.33/100= 0.0033
<u>To calculate the number of years, we need to use the following formula:</u>
n= ln(FV/PV) / ln(1+i)
n= ln(4,375/2,600) / ln(1.0033)
n= 157.96/4
n= 39.49 years
Answer:
The euro return to investing directly in euros is 180 5% 10% 360 = × ÷ , so the euros available in 180 days is EUR10,000,000 × 1.05 = EUR10,500,000. Alternatively, the EUR10,000,000 can be converted into Swiss francs at the spot rate of EUR1.1960/CHF. The Swiss francs purchased would equal EUR10,000,000 / EUR1.1960/CHF = CHF8,361,204. This amount of Swiss francs can be invested to provide a 180 4% 8% 360 = × ÷ return over the next 180 days. Hence, interest plus principal on the Swiss francs is CHF8,361,204 × 1.04 = CHF8,695,652. If we sell this amount of Swiss francs forward for euros at the 180-day forward rate of EUR1.2024/CHF, we get a euro
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return of CHF8,695,652 ×EUR1.2024/CHF = EUR10,455,652. This is less than the return from investing directly in euros.If these were the actual market prices, you should expect investors to do covered interest arbitrages. Investors would borrow Swiss francs, which would tend to drive the CHF interest rate up; they would sell the Swiss francs for euros in the spot foreign exchange market, which would tend to lower the spot rate of EUR/CHF; they would deposit euros.
Explanation:
Answer:
The correct answer is B. The adoption of a new cost driver for overhead application.
Explanation:
This option is chosen because it is not directly related to organizational capital, or the production of goods or the provision of services. Otherwise it happens with options A and C, which does merit an analysis of the capital budget.
Option B is only taken into account in the analysis of the sales budget or production costs.
Answer:
C. Value for price paid
Explanation:
The quality of goods are measured with the usefullness of the goods to the consumer and how much he is willing is pay for the product is etermined by the utility of goods to the consumer. Higher amount is paid for the goods, which has higher utility to the consumer and it also define quality to the consumer. Price and utility of product remain the main determinant for the quality.
Value of price paid is determined by utility or usefulness of the product for each dollar paid to buy it.
Since he is planning on an annual inflation rate of 2%., the statement that explains the interest rates relating to the CD is nominal interest rate is 3% while the real interest rate is 1%.
A real interest rate refers to the nominal rate which is adjusted for inflation.
- We are given that Interest (nominal rate) is 3% and planned Inflation rate = 2%
- Real interest rate = 1% (Nominal rate - inflation rate)
Hence, the statement that explains the interest rates relating to the CD is nominal interest rate is 3% while the real interest rate is 1%.
Therefore, the Option B is correct.
Read more about Real interest rate
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