Answer:
$354,500
Explanation:
First find the amount invested ie the Present Value as follows :
n = 25 × 2 = 50
i = 5%
P/yr = 2
Pmt = $0
Fv = $500,000
Pv = ?
Using a Financial Calculator to enter the amounts as above, the Present Value is $145,471
Total Interest = Future Value - Present Value
= $500,000 - $145,471
= $354,529
Thus interest is $354,500 (nearest hundred dollars).
Answer:
Federal Reserve will require Stephen to pay $7,280 in cash for this purchase
Explanation:
There is a legal requirement from the federal that for an investor to deposit 50% cash of the purchase of shares / securities value in the margin account. It is called the margin requirement.
Purchase Value = Number of shares x Price per share
Purchase Value = 700 shares x 20.8
Purchase Value = $14,560
Inityial Margin Requirement = $14,560 x 50% = $7,280
Most probably B. What does Unc mean in question A?
The firm's blank command line value can be calculated by assuming a continual perpetual rate of growth for cash flows beyond the horizon.
<h3>How does terminal value work?</h3>
An asset, company, or project's value after the anticipated time frame at which future cash flows can be predicted is known as its terminal value (TV). A business will supposedly continue to grow at a specific rate after the forecast period, according to the concept of terminal value.
<h3>Uses for terminal value:</h3>
The terminal value (TV) of a business is its estimated present value after the explicit forecast period. The Gordon Growth Model, special discount cash flow, and residue left earnings computation.
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