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3 years ago

An amount of $2,500 is deposited in a savings account that earns 2.5% interest. Which is the future value

Business

1 answer:

Lynna [10]3 years ago

5 0

Answer:

$3,208

Explanation:

The computation of the future value is shown below;

As we know that

Future valie = Present value × (1 + rate of interest)^number of years

where

Present value is $2,500

Rate of interest = 2.5% ÷ 4 = 0.625%

And, the time period is = 10 × 4 = 40

So, the future value is

= $2,500 × (1 + 0.625%)^40

= $3,208

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Suppose the price of tablets increases by 8 percent and producers respond by increasing the quantity supplied by 20 percent. The

zimovet [89]

Answer:

The answer is: C) 2.5 and producers are very responsive to the price change.

Explanation:

The price elasticity of supply refers to what percentage does the quantity supplied change when the price of the good changes in 1%. It is calculated using the following formula:

price elasticity = % change in quantity supplied / % change in price

Price elasticity of supply of tablets = 20% / 8% = 2.5

For every 1% that the price increases, the quantity supplied will increase by 2.5%.

Since PES > 1, the supply is very price elastic.

4 0

3 years ago

Classify each of the studies as either descriptive or inferential. Explain your answers.

Ludmilka [50]

Answer: Descriptive statistics uses the data to provide descriptions of the population, either through numerical calculations or graphs or tables. Inferential statistics makes inferences and predictions about a population based on a sample of data taken from the population in question.

Explanation: Scottsdale, AZ $167 0.973 12.43%

Washington, DC $436 0.990 2.88%

San Francisco $636 1.026 6.55%

as Vegas, NV $74 1.000 19.45%

Nashville, TN $106 0.973 18.09%

They are all Inferential study

8 0

3 years ago

20 POINTS TO SUB TO MY CHANNEL RICECRISISYT

Alex17521 [72]

Answer:

sure man

Explanation:

6 0

3 years ago

Universal Laser, Inc., just paid a dividend of $3.10 on its stock. The growth rate in dividends is expected to be a constant 6 p

Vadim26 [7]

Answer:

Ans. The current price of the stock is $56.82

Explanation:

Hi, well, the problem here is that we have different discount rates, in other words the required rate of return for the stock changes several times, therefore we are going to break this problem in 3 parts, or bring to present value all the cash flows in 3 steps. Let´s start with the value of the dividends.

We have to use the following formula.

$Dn=D_{(n-1)} *(1+g)$

Where, D(n-1) is last dividend and Dn is the dividend that we are looking for, for example, D1 = 3.10*(1+0.06)=3.29, D2=3.29*(1+0.06)=3.48, and so forth. The amount to pay on dividends per share is,

D1=3.29; D2=3.48; D3=3.69; D4=3.91; D5=4.15; D6=4.40; D(7)=4.66

Since the first 3 years are to be discounted at a 15%, this is how the formula should look like.

$PV(1)=\frac{D1}{(1+r(1))^{1} } +\frac{D2}{(1+r(1))^{2} } +\frac{D3}{(1+r(1))^{3} }$

$PV(1)=\frac{3.29}{(1+0.15)^{1} } +\frac{3.48}{(1+0.15)^{2} } +\frac{3.69}{(1+0.15)^{3} }=7.92$

Now, for the second part, we have to bring all cash flows to year 3 at r(2)=13% and then bring it to present value at r(1)=15%. This is because we have 2 different discount rates, this is as follows.

$PV(2)=(\frac{D4}{(1+r(2))^{1} } +\frac{D5}{(1+r(2))^{2} } +\frac{D6}{(1+r(2))^{3} })*\frac{1}{((1+r(1)^{3} }$

$PV(2)=(\frac{3.91}{(1+0.13)^{1} } +\frac{4.15}{(1+0.13)^{2} } +\frac{4.40}{(1+0.13)^{3} })*\frac{1}{(1+0.15)^{3} } =6.42$

Finally, we need to bring all the future cash flows from year 7 and beyond, notice that we need to use the return rate r(3) to bring everything to year 6, then we have to bring it to year 3 and then to present value, everything as follows.

$PV(3)=(\frac{D7}{(r(3)-g)} )*(\frac{1}{(1+r(2))^{3} } )*(\frac{1}{(1+r(1))^{3} } )$

$PV(3)=(\frac{4.66}{(0.11-0.06)} )*(\frac{1}{(1+0.13)^{3} } )*(\frac{1}{(1+0.15)^{3} } )=42.48$

So, the price of the stock is PV(1) + PV(2) + PV(3), or:

$Price=7.92+6.42+42.48=56.82$

Price= $56.82/share

Best of luck.

3 0

3 years ago

Real Angus Steakhouse purchased land for $75,000 cash. They also incurred commissions of $4,500, property taxes of $5,000, and t

Stella [2.4K]

Answer:

c. $84,300.

Explanation:

The computation of the total cost of the land is shown below:

= Purchase cost of land + commission incurred + property taxes + title insurance

= $75,000 + $4,500 + $4,000 + $800

= $84,300

We simply added that costs which are related to the land i.e purchase cost, commission , property taxes ,and title insurance. The $1,000 cost should not be considered.

4 0

3 years ago