Be honest, nice, formal, and give them advice as to how they could do better. Give them a chance to change their work performance.
Answer:
He will have to invest $17,624 today to reach his goal
Explanation:
Accumulated value = Future Value =FV = $25,000
Rate of Interest = r = 6.35% = 0.0635
Number of Year = n = 6 years
Amount Invested today = PV = ?
FV = PV x (1+r)^n
$25,000 = PV ( 1 + 0.0635 )^6
$25,000 = PV ( 1.0635 )^6
$25,000 = PV x 1.41852
PV = $25,000 / 1.41852
PV = $17,624.01
PV = $17,624
Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
Answer and Explanation:
The computation of the dollar markup and the percent markup on cost is shown below;
The dollars markup is
= Selling price - cost price
= $21.40 - $14.80
= $6.60
ANd, the percent markup on cost is
= $6.60 ÷ $14.80 ×100
= 44.60%