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3 years ago

14

Using the rule of 72, t = StartFraction 72 Over r EndFraction, how long will it take for the principal to double with an annual

compound interest rate of 6%?

1 answer:

Leviafan [203]3 years ago

5 0

Answer:

12 years

Explanation:

Given

$t = \frac{72}{r}$

Required

How long will interest rate of $6\%$ double

We have:

$t = \frac{72}{r}$

Substitute 6 for r

$t = \frac{72}{6}$

$t = 12$

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he hedge ratio of an at-the-money call option on IBM is 0.35. The hedge ratio of an at-the-money put option is -0.65. What is th

Kazeer [188]

Answer:

- 0.30

Explanation:

Given the following :

Hedge ratio of an at-the-money call option on IBM = 0.35

Hedge ratio of an at-the-money put option = - 0.65

Hedge ratio of an at-the-money straddle =?

Hedge ratio of an at-the-money straddle is given by :

(Hedge ratio of an at-the-money call option + Hedge ratio of an at-the-money put option)

Hedge ratio of an at-the-money straddle :

(0.35 + (-0.65))

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3 years ago

An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall d

Paladinen [302]

Answer:

increase; decrease; decrease; decrease.

Explanation:

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

Basically, trade can be categorized into two (2) main groups and these are;

I. Import: this involves bringing in goods from a foreign country to sell in a different (domestic) country.

II. Export: it involves the sales of goods produced in a domestic country to a foreign country.

An export subsidy can be defined as any government policy that encourages the export of goods to other countries while discouraging the sales of goods in the domestic market through the use of tax reliefs, low cost loans, government foreign adverts, etc.

A surplus is the amount by which the quantity supplied of a good exceeds the quantity demanded of the good.

Producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence, an export subsidy will increase producer surplus, decrease consumer surplus, decrease government revenue, and decrease overall domestic national welfare.

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2 years ago

A project that costs $1,900 to install will provide annual cash flows of $500 for the next 5 years. The firm accepts projects wi

Doss [256]

Answer:

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B YES

C $325.91

Explanation:

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payback period = amount invested / cash flows

$1,900 / $500 = 3.8 years

the project should be accepted because the payback period is less than the maximum acceptable year

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

cash flow in year 0 = $-1900

cash flow each year from year 1 to 5 = $500

I = 4%

NPV = $325.91

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago

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Occipital lobe

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3 years ago

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A current liability for

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2) any accrued interest that is owed as of the balance sheet date.

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2 years ago