Answer: a. $4400.81
b. $4114.99
c. $3625.60
Explanation:
Present value of money is the worth of money at a particular period of time.
a. If the discount rate is 12 percent, what is the present value of these cash flows?
Present value at 12% will be:
= 1250/1.12 + 1180/1.12^2 + 1570/1.12^3 + 1930/1.12^4
= $4400.81
b. What is the present value at 15 percent?
Present value at 15% will be:
= 1250/1.15 + 1180/1.15^2 + 1570/1.15^3 + 1930/1.15^4
= $4114.99
c. What is the present value at 21 percent?
Present value at 21% will be:
= 1250/1.21 + 1180/1.21^2 + 1570/1.21^3 + 1930/1.21^4.
= $3625.60
Answer:
The correct answer is letter "C": Increase borrowing in the US, convert to Canadian dollars and invest in Canada.
Explanation:
Carry trade is a trading strategy that consists in requesting loans to a low-interest rate and use that financing to invest in assets that would revenue higher income. This strategy is being used in the currency market. <em>The idea is for investors to be financed in one currency with a low-interest rate so later that money can be invested in other currencies with a higher interest rate in the original country where the currency is issued</em>.
Answer:
Is large enough to permit a profitable market effort toward its members.
$5,500
This is the maximum deductible contribution for people under 50 in 2016, 2017, and 2018 tax years. (For people 50 and over, the max deductible is $6,500)