Answer:
-0.11% a year
Explanation:
Susan's real interest rate is the nominal rate of her investment subtracted by the percentage increase in CPI.
The percentage increase in CPI for 2005 was:
Therefore, Susan's real interest rate (i) was:
Deposit (PV): $10,000
Years between the 18th month and the fifth year (n) = 3.5
(I)=7% yearly interest rate
Simple interest approach accumulated value equals P*(1+(i*n)).
=1000*(1+(7%*3.5))
=1245
Thus, the total value at the end of five years will be $1245.
Compound interest method accumulated value equals P*(1+i)n
=1000*(1+7%)^3.5
=1267.19
Therefore, the total value after five years will be $1267.19.
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Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
<span>The company failed to identify the issue because of their recklessness in partner event that they had been in. It means that their company had failed to get through their target market, and they did not identify their target market clearly. Alcoholic beverage was not a proper way to support the children with disabilities because the people who came probably just drank a lot.</span>
Answer:
IRR= 21.86%
Explanation:
Giving the following information:
Initial investment (PV)= $10,000
Cash flows (PMT)= $4,000 per year
Number or years (n)= 4
<u>It is extremely difficult to calculate the IRR using the formula. We will use the financial calculator.</u>
Function: CMPD
n= 4
I%= SOLVE = 21.86%
PV= 10,000
PMT= -4,000
IRR= 21.86%
