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love history [14]
3 years ago
6

Suppose that you invest $100 today in a risk-free investment and let the 6 percent annual interest rate compound. What will be t

he value of your investment 6 years from now?
Business
1 answer:
Kipish [7]3 years ago
3 0

Solution :

It is given that :

Amount of investment or the principle amount , P = $ 100

Time of investment , t = 6 years

Rate of interest compounded annually r = 6 %

Therefore the future amount of this investment in a 6 year time is given by,

$FV=P(1+\frac{r}{100})^t

$FV=100(1+\frac{6}{100})^6

$FV=100(1+0.06)^6

$FV= 100 (1.4185)$

$FV=141$

Therefore, after 6 years the investment of $ 100 will give an amount of $ 141.

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Turnips and Parsley common stock sells for $39.86 a share at a market rate of return of 9.5 percent. The company just paid their
valkas [14]

Answer:

The rate of growth of their dividend is 6.30%.

Explanation:

This problem requires us to calculate the growth rate at which the dividend will grow. The market value of share and market rate of return is also given in the problem. So we can easily calculate it using market valuation formula.

MV = D(1+G%)/ke

39.86 = 1.2 (1+G%)/(9.5%-G%)

G =  6.30%                    

4 0
3 years ago
You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing
Shalnov [3]

Answer:

A) Shortage, B) Fall in Price

Explanation:

A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal &  these curves intersect each other.

Above condition gives us equilibrium price & quantity.

If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie <u>shortage </u>(graphically denoted by distance between demand & supply curve at actual price below equilibrium price)

B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to <u>fall in price </u>of these hybrid vehicles.

7 0
3 years ago
5 things that make you a borrower
brilliants [131]

Company, Customers, Competitors, Collaborators, and Climate.

8 0
2 years ago
What does the CFO of a company do?
marissa [1.9K]

Answer:

the job of a CFO is to optimize a company's financial performance

Explanation:

including: reporting, liquidity, and return on investment

i hope this helps you i had to remember back

6 0
3 years ago
A group of individuals got together and purchased all of the outstanding shares of common stock of DL Smith, Inc. What is the re
kati45 [8]

Answer: (B) Cost of equity

Explanation:

 The cost of equity is basically refers to the return rate in an organization to the equity investors such as shareholders. The firms or organizations need to obtain the capital from he other firms for operating and the growth of an organization.

According to the question, the cost of equity is basically refers to the return that the individual wants to acquire on the investment when they purchased the common stock from the DL smith,Inc.

Therefore, Option (B) is correct answer.

3 0
2 years ago
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