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MA_775_DIABLO [31]
3 years ago
5

Abbot Inc. is considering the following investment opportunities. Required Compute the future value under each of the investment

options. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .6333333%). Round final answer to the nearest whole dollar (for example, enter final answer 2,556 for 2,555.5678). Do not use a negative sign with your answers. Annual Interest Term Future Investment Compounding Rate Cost (Years) Value Investment A Semiannually 6% $50,000 5 $ 67,196 Investment B Quarterly 8% 60,000 10 132,482 Investment C Monthly 10% 40,000 8 88,727 X Investment D Monthly 5% 80,000 10 131,761 x
Business
1 answer:
Over [174]3 years ago
7 0

Answer:

$ 67,196

$132482

$88,727

$131,761

Explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

m =number of compounding

$50,000 x ( 1 + 0.06/2)^10 = $67,196

$60,000 x ( 1 + 0.08/4)^40 = $132,482

$40,000 x (1 + 0.1/12)^96 = $88,727

$80,000 x ( 1 + 0.05 /12) ^120 = $131,761

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Answer:

A. Will be the nine month period between August 15 and May​ 15; any time period longer than this will be long run for her.

6 0
3 years ago
What is joint tenancy?
NeTakaya

Answer:

Explanation:

Joint tenancy is a lawful course of action in which at least two individuals possess a property together, each with equivalent rights and commitments. When one of the proprietors in a joint tenure dies, that proprietor's interest in the property goes to the survivors without the property experiencing the courts.

3 0
3 years ago
Suppose Turkey has exports of 2 billion Turkish​ Lira, while its imports are 2 billion Turkish Lira. Calculate​ Turkey's "Index
Damm [24]

Answer:

40%

Explanation:

The index of openness measures how much a country is exposed to international trade. It is calculated by this formula:

Index of Openness= (Exports(X)+Imports (M))/GDP

Index of Openness= (2 billion+2 billion )/10 billion

Index of Openness= 0,4*100=40%

5 0
4 years ago
A clearinghouse scam involves a victim receiving: a. a letter that claims he or she has inherited a significant amount of money.
Vitek1552 [10]

Answer:

c. a letter that falsely claims the writer represents a foreign bank.

Explanation:

A clearing house is a financial institution that should be created for exchanging the payments, securities, or transactions related to derivates. It stands between the two clearing firms. Its motive is to decrease the member risk that failed to honor the trade settlement liabilities

So the clearing house scam includes the victim that collect the letter in which there is false claims where the writer shows the foreign bank

5 0
3 years ago
An investor is given the two investment alternatives (Assets A and B) with the following characteristics: Asset Expected Return
kow [346]

Answer:

12.00%

Explanation:

As per the given question the solution of standard deviation of a portfolio is provided below:-

Standard deviation of a portfolio = √(Standard deviation of Product 1)^2 × (Weight 1)^2 + Standard deviation of Product 2)^2 × (Weight 2)^2 + 2 × Standard deviation of product 1 × Standard deviation of product 2 × Weight 1 × Weight 2 × Correlation

= √(0.165^2 × 0.6^2) + (0.068^2 × 0.4^2) + (2 × 0.6 × 0.4 × 0.165 × 0.068 × 0.7)

= √0.009801  + 0.0007398  + 0.00376992

= √0.01431076

= 0.119628592

or

= 12.00%

So, we have calculated the standard deviation of a portfolio by using the above formula.

3 0
3 years ago
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