Since the interest is compounded, we will have to use the compound interest formula.
We Weill plug 7500 in for A, because that's the amount of money that we want to have at the end of some amount of time.
5000 will go in for P because that's the starting amount.
2.7% will be converted into a decimal percentage form. You can do this by dividing by 100, which you will get .027, and then plug that in for r, the rate.
Since the interest is compounded quarterly, n = 4.
After a bit of number crunching, you will get to the point where you have to solve for an exponent. You can easily do this by using the natural log ln(). One property of logarithm is that you can take the exponent and place it in front of the log. Now you can divide both sides to separate and solve for t.
Answer:
real risk-free rate = 2.7 %
Step-by-step explanation:
Given data
Treasury bonds yield r = 5%
time = 5 year
(IP) = 1.9%
MRP = 0.4%
to find out
real risk-free rate r*
solution
we will find real risk-free rate r* by the given formula that is
Treasury bonds yield = real risk-free rate + IP + MRP + default risk premium + liquidity premium
so here default risk premium and liquidity premium both are zero
put all the other value we get real risk-free rate
real risk-free rate = 5% - 1.9 % - 0.4%
real risk-free rate = 2.7 %
Answer:
The answer is false and is not
Explanation:
Given the equation -
Substitute x = 2 in the equation
Thus, the equation is false. When the equation is false, meaning that the coordinate x-term isn't passed by the line. (Rather say that the point is not the part of the graph.)
The equation is false is our first answer.
If the equation is false, that means the given value is not part of the graph, thus making the x-value not the solution.
Let x = amount of mortgage (aka the amount by the bank)
25% of the monthly income of $3000 is 0.25*3000 = 750 dollars
So using this rule, the family can pay up to $750 per month on mortgage
1% of the amount loaned (x) is equal to this figure, so
0.01*x = 750
0.01*x/0.01 = 750/0.01
x = 75000
Therefore, the most expensive mortgage this family can afford is $75,000. Anything higher and they go over budget.
1/4*2=2/8
3/8*4=12/32
1/2*2=2/4
5/8*2=10/16
3/4*3=9/12
7/8*1=7/8
2/8+1/2+3/2+2/4+10/16+9/12+7/8=33/75
Your answer is 33/75
Hope this helps
