Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
<u></u>
Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Answer:
In the elimination method you either add or subtract the equations to get an equation in one variable. When the coefficients of one variable are opposites you add the equations to eliminate a variable and when the coefficients of one variable are equal you subtract the equations to eliminate a variable.
Hope this helps!
If you need a more in-depth answer, don't hesitate to ask!
Answer: 4/5x
Explanation: simply the expression, then convert it and calculate your answer.
Answer:
680
Step-by-step explanation:
Number of red beans = 30
Number of Blue beans = 30
Number of green beans = 30
How many color combinations of 15 beans have at least 6 green beans?
Since at least 6 of the beans must be green,
Then (15 - 6) = 9
Then, the remaining 9 could be either red, blue or green.
Therefore, C(9 + (9 - 1), 3)
C(17, 3) = 17C3
nCr = n! ÷ (n-r)! r!
17C3 = 17! ÷ (17 - 3)! 3!
17C3 = 17! ÷ 14!3!
17C3 = (17 * 16 * 15) / (3 * 2)
17C3 = 4080 / 6
17C3 = 680 ways
Answer:
469.25
Step-by-step explanation:
peter=x
david=x+1.50
x+(x+1.50)=940
x=940-x-1.50
2x=940-1.50
2x=938.5
x=938.5/2
x=469.25
