Explanation:
precautionary demand for money is classified as money that are held to cover for unforeseen occurrence e.g, an accident or illness.
It should also be noted that: The amount of money held for such purposes is broadly dependent on the level of income and expenditure.
With more income the precautionary demand will increase because there are more likely to be surprises in the timing or magnitude of the correspondingly high expenditures
A higher rate of interest represents a higher opportunity cost of holding money for any reason, including the precautionary reason, and so leads to lower precautionary holdings.
Answer:
<em>d) Slightly greater than 4 years</em>
Explanation:
<em>The portfolio's Macaulay period (MaD) is the mean maturity of its retained earnings.</em>
Fifty per cent of cash flows (in terms of PV) come after three years and another fifty per cent arrive after five years, so the MaD is 0.53 + 0.55 = 4.
We must divide the MaD by (1+ytm/2) to get Modified Duration (MoD).
<em>Then portfolio MoD is </em><u><em>4/(1 + 0.02/2) = 3.96.</em></u>
A database is an organized collection of data. Knowing this, your answer is most likely D. articles from magazines.
Answer:
the lump sum that would equal the present value of the annual installments is $38,163,612
Explanation:
The computation of the lumspum amount is as follows;
= Cash flow × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest)
= $89 million × (1 - (1 + 0.0765)^-26) ÷ 0.0765)
= $38,163,612
Hence, the lump sum that would equal the present value of the annual installments is $38,163,612
Therefore the above is calculated by applying the given formula
Three compartment sinks are used commercially by hotels or restaurants.
Each compartment in the sink is used for separate purpose.
First compartment is used for Washing the dishes, second one is used to rinse the dishes and the third one is used to sanitize the washers' hands.
The activities that are not allowed in these compartment are washing of cleaning clothes, washing of meat or vegetables, hand washing, throwing of wastes etc
