Answer: $121
Explanation:
The question simply wants us to find the present value of receiving $100 investment two years from now at a 10 percent annual discount rate.
This can be easily solved as follows:
For the first year, the $100 will be worth:
= $100 + ($100 × 10%)
= $100 + ($100 × 0.1)
= $100 + $10
= $110
The worth at the end of the second year will then be:
= $110 + ($110 × 10%)
= $110 + $11
= $121
The answer is B.
"A hypothesis (plural hypotheses) is a proposed explanation for a phenomenon. For a hypothesis to be a scientific hypothesis, the scientific method requires that one can test it. Scientists generally base scientific hypotheses on previous observations that cannot satisfactorily be explained with the available scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously, a scientific hypothesis is not the same as a scientific theory. A working hypothesis is a provisionally accepted hypothesis proposed for further research, in a process beginning with an educated guess or thought."
"A hypothesis is an assumption, an idea that is proposed for the sake of argument so that it can be tested to see if it might be true."
They are both road maps that details the features of something
Answer:
Let Lt = Loan in period t , t= 1...4
It = Investment in period t, t= 1...4
These are the decision variables
The objective is to maximize the net income which is the difference between Loan and investment in period 4
Investment income in period 4 = 110% of I4 = 1.1I4
Expense and loan in period 4 = 1.085 L4
So,
Maximize Z = 1.1I4-1.085 L4
Constraints
L1<= 3000
I1<= 4500
L1-I1= 100( Payroll payment)
L2<= 7000
I2<= 8000
L2+1.1I1-1.085L1-I2=120
L3<=4000
I3<= 6000
L3+1.12I2-1.085L2-I3=150
L4<=5000
I4<=7500
L4+1.13*I3-1.085L3-I4=100
1.10I4-1.085L4>=0
Lt, It>=0
Putting this in excel sheet,
See remaining part in pictures attached.
Explanation:
See pictures attached.
Answer:
15.26%
Explanation:
Let the expected return if economy is normal be X
Expected return ; E(R) = SUM(probability. *return)
E(R) =15.1% OR 0.151 as a decimal
RECESSION: (probability. *return) = -0.08 * 0.02 = -0.0016
NORMAL: (probability. *return) = 0.87 *X = 0.87X
BOOM: (probability. *return) = 0.11 *0.18 = 0.0198
Next, sum the three returns and equate them to 0.151;
-0.0016 + 0.87X + 0.0198 = 0.151
0.87X + 0.0182 = 0.151
Subtract 0.0182 from both sides;
0.87X = 0.151 - 0.0182
0.87X = 0.1328
Divide both sides by 0.87 to solve for X;
X = 0.1526 as a decimal or 15.26%
Therefore, expected return if economy is normal is 15.26%
