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3 years ago

You are to receive the following payments at the end of the following periods:

Business

1 answer:

dangina [55]3 years ago

4 0

Answer: $12,113.14

Explanation:

Find out the future value of each payment 20 years from now then sum up the values.

Year 1:

= 250 * ( 1 + 15%)¹⁹

= $3,557.94

Year 2:

= 300 * ( 1 + 15%)¹⁸

= $3,712.636

Year 3:

= 450 * ( 1 + 15%)¹⁷

= $4,842.5688

Future value of all:

= 3,557.94 + 3,712.636 + 4,842.5688

= $12,113.14

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The overhead volume variance relates only to

Fofino [41]

D fixed overhead cost

5 0

3 years ago

Compound Interest:

MA_775_DIABLO [31]

Option answer:

d. Interest = $10.64 and New Balance = $360.64

Answer:

A = $360.64

A = P + I where

P (principal) = $350.00

I (interest) = $10.64

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 1.5/100

r = 0.015 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 350.00(1 + 0.015/4)(4)(2)

A = 350.00(1 + 0.00375)(8)

A = $360.64

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $350.00 at a rate of 1.5% per year compounded 4 times per year over 2 years is $360.64.

7 0

3 years ago

When a principal is unidentified Group of answer choices the agent and principal will be jointly and severally liable on the con

Alja [10]

Answer:

The correct answer is letter "A": the agent and principal will be jointly and severally liable on the contract.

Explanation:

Principal-agent relationships born because of the need for principals of contracting agents acting on their behalf. While interacting with third parties, the principal can take one of the three (3) following roles: fully disclosed principal, unidentified principal, and undisclosed principal.

An unidentified principal, also called jointly and severally liable principal, is unknown by third parties. The third party knows the agent represents another party but the identity of that other party is a mystery.

4 0

4 years ago

Suppose the median household earned $9,242 in 1976 and $52,624 in 2016. During that time, also suppose the CPI rose from 45.6 to

Mekhanik [1.2K]

Answer:

a) 469.40%

b) 18.15%

Explanation:

Total nominal growth rate = $(\frac{\textup{Earned income in 2016}}{\textup{Earned income in 1976}}-1)\times100\%$

thus,

Total nominal growth rate = $(\frac{\textup{52,624}}{\textup{9,242}}-1)\times100\%$

= 469.40%

b) Total real growth rate = $(\frac{\textup{Real earned income in 2016}}{\textup{Real earned income in 1976}}-1)\times100\%$

now,

Real earned income in 1976 = $\frac{\textup{Earned income in 1976}}{\textup{CPI in 1976}}$

= $\frac{\textup{9,242}}{\textup{45.6}\%}$

= $20,267.54

and,

Real earned income in 2016 = $\frac{\textup{Earned income in 2016}}{\textup{CPI in 2016}}$

= $\frac{\textup{52,624}}{\textup{219.75}\%}$

= $23,947.21

Therefore,

Total real growth rate = $(\frac{\textup{23,947.21 }}{\textup{20,267.54 }}-1)\times100\%$

= 18.15%

4 0

3 years ago

A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m

prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market
(rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x = 0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0

3 years ago