Answer:
Addison will have $ 1,661 in her account in nine years.
Explanation:
This problem requires us to calculate value of our investment of $ 1000 dollars after nine years. The interest on the investment is 5.8% compounded annually.
This problem can be solved by using simple compounding formula given below.
Future Value = Present Value (1+interest rate%)^-period
Future Value = 1,000 (1+5.8)^9
Future = $ 1,661
Answer:
The weekly production for version A be 100 units
Explanation:
According to the given data we have the following:
The Total aggregate forecast for the year=10,400 units
Number of weeks per year=52 weeks
The weekly production=Total aggregate forecast for the year/ numer of weeks
The weekly production=104,00/52=200 units
Therefore, the weekly production for version A=50%of 200 units
The weekly production for version A=100 units
The weekly production for version A be 100 units
Answer: The constant growth model can be used if a stock's expected constant growth rate is less than its required return.
Explanation:
The Constant Growth Model is a stock valuation method.
It assumes that a company's dividends are increasing at a constant growth rate indefinitely.
Formula: Current price = (Next dividend the company is to pay) ÷ (required rate of return for the company - expected growth rate in the dividend.
When expected constant < required return, then the constant growth model can be used.
Hence, the statement is true about the constant growth model :
The constant growth model can be used if a stock's expected constant growth rate is less than its required return.
Answer:
= $832s
Explanation:
CI = 5000*(1+8/100)^2
=5832 -5000
= $832s
There is a difference between the CI and SI. For SI principal remains the same each year. However, when we deal with CI then the new principal is the starting principal plus the interest. And that is the difference between the two. Also, the formula hence for CI is:
CI= P(1 +R/100)^N -P
SI= PRT/100
Answer:
Investment Spending or Capital Expenditure.
Explanation:
Capital Expenditure or Investment Spending mainly deals with business expenditure on capital goods or factor/inputs of production which are used in the production process.
