Answer:
r = 5.35%
Explanation:
Given:
- n = 20
- PV = -$3,025,000 (the amount you should have if you receive a lump-sum today)
- PMT = $250,000
To find the rate of return that built into the annuity, we can use Excel with following information of the function:
=rate(nper, pmt, -PV)
<=> rate (20,250000, -3025000 )
<=> r = 5.35%
Hope it will find you well.
Answer:
Zero economic profits in the long run.
Explanation:
In a perfect competition, firms are able to freely enter into, or exit a market.
As more and more firms enter the market, it causes an increase in supply in the long run, which<u> leads to a fall in prices and therefore profits, such that firms will start to earn normal profits or </u><u>zero economic profits.</u>
Answer:
Option B
Explanation:
Null hypothesis: ∪ = $175
Alternative hypothesis: ∪ₐ ≠ $175
With a pp value of 0.0021 which is less than value at the level of significance, the null hypothesis is not rejected as there is no sufficient statistical evidence that the mean is greater than $175.
10.70% - Option D
<u>Explanation:</u>
One-year interest rate one year from now:
= 1.625625 divide by 0.16
=10.160
Therefore, an approximate answer is 10.70%
Respect Maturity (YTM) – in any case alluded to as recovery or book yield – is the theoretical pace of return or loan cost of a fixed-rate security, for example, a security. The YTM depends on the conviction or understanding that a financial specialist buys the security at the present market cost and holds it until the security has developed (arrived at its full worth), and that all premium and coupon installments are made in a convenient manner.
Answer:
$12,200
Explanation:
Preparation of an income statement for the year.
PARSONS COMPANY Income Statement
For the year ended December 31,2020
Service Revenue $37,000
Expenses:
Salaries and wages $16,000
Insurance Expense $2,000
Rent Expense $4,000
Supplies Expense $1,500
Depreciation Expense $1,300
Total Expenses $24,800
Net Income $12,200
($37,000-$24,800)
Therefore income statement for the year is $12,200
