Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
Given that land was bought by Bob for $16390, the price is increasing at the rate of 6%, price of land today is $46817.
We are required to find the time for which Bob need to own the land so that the price of the land is $46817 today.
Compounding means calculating amount on the principal and the amount added interest.
Rate of increasing the price of land be 6%.
Price when Bob bought the land=$16390.
Price of land today=$46817.
It is like compounding of interest and the sum is calculated as under:
S=P*
In the above equation P is theamount at beginning,r is rate of increasing and n is the number of years.
46817=16390
46817/16390=
=2.8564
=
(Approximately)
From both the sides we will get n=18.
Hence Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
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Answer:
$4,000
Explanation:
The computation of the cash to be required to settle the liability is shown below:
= Purchase value of inventory - returned inventory which was purchased
= $5,000 - $1,000
= $4,000
It is a net purchase plus it is the cash required to settle the liability
There is no discount applied in the question as dates are not given so we ignored it.
Answer:
value of the bond = $2,033.33
Explanation:
We know,
Value of the bond, ![B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5BI%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%20i%29%5E%7B-n%7D%7D%7Bi%7D%5D%20%2B%20%5Cfrac%7BFV%7D%7B%281%20%2B%20i%29%5En%7D)
Here,
Face value of par value, FV = $2,000
Coupon payment, I = Face value or Par value × coupon rate
Coupon payment, I = $2,000 × 6.04%
Coupon payment, I = $128
yield to maturity, i = 6.1% = 0.061
number of years, n = 15
Therefore, putting the value in the formula, we can get,
![B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%200.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281%20%2B%200.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B0.3393%7D%7B0.061%7D%5D%20%2B%201%2C321.3635)
or, ![B_{0} = [128 * 5.5623] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%205.5623%5D%20%2B%201%2C321.3635)
or,
$711.9738 + 1,321.3635
Therefore, value of the bond = $2,033.33
Answer:
I believe that is company culture
Explanation:
reason it just makes sense to me
its definitely not A or B