Answer:
Simple interest= $273.7
Explanation:
<em>Simple interest is the interest on earned on the principal amount invested only. Kindly note that under this system, only the principal amount invested would earn interest over the course of the investment period</em>
<em> Simple interest is calculated as follows:</em>
Simple interest = Principal × Rate × Time
or
Simple interest = Future sum - Principal amount invested
DATA
Future sum- $973.70
Principal amount invested-700
Simple interest = 973.70 - 700=273.7
Simple interest= $273.7
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Answer:
No, her ratio is greater than 37%
Explanation:
Given:
Monthly income = $3,300
Credit card expenses = $80
Student loan expenses = $130
Car payment = $215
All insurances = $1,221
Computation:
Total debt to income ratio = Total debt / Total income
Total debt to income ratio = (80 + 130 + 215 + 1221) / 3300
Total debt to income ratio = 49.87%
Housing payments to income ratio = All insurances / Monthly income
Housing payments to income ratio = (1221) / 3300
Housing payments to income ratio = 37%
No, her ratio is greater than 37%
Answer:
Contribution margin ratio = 1 - variable cost ratio
= 25%
(a) 
= 1,400,000
= 25,000
(b) For profit of $42,000,
= 1,568,000
= 28,000
(c) variable cost = sales price × variable cost ratio
= $56 × 75%
= $42
New contribution margin = 
New contribution margin = 
= 0.4
= 40%
= $875,000
= 12,500
C You always want to prepare
