YOU CAN INVEST THINGS SUCH AS MONEY AND IT EXPANDS THE AMOUNT OF MONEY YOU HAVE. THIS MEANS THAT YOU CAN GET MORE MONEY AND HAVE MORE MONEY TO WASTE ON FUTURE PLANS.
Answer:
The Future value at year time is $4,260
Explanation:
The future value at the end of the year one can be found by using the compounding formula which is as under:
Future Value = Present Value * (1 +r)^n
Future Value = $4,000 * (1.065)^ 1 = $4,260
The three factors used to determine a company’s credit rating are its current ratio, its debt-to-equity ratio, and its interest coverage ratio.
<u>Explanation:</u>
- A credit rating comes in the list of the company’s annual performance targets. It helps to decide the company’s current year progress.
- A company’s debt-to-equity ratio is used to know the debt of a company as compared to the total equity. If this ratio is high, the company is taking on much debt.
- The current ratio marks a way to compute the liquidity of the company. It shows how well a firm is placed to meet the short term obligations. Broadly, a 2-1 ratio is considered a good ratio.
- The interest coverage ratio tells how well the company may pay its future loan payments. If the ratio is higher than 3-to-1, it suggests that the company is in a good position to make future payments.
This measures frequency, as it states that number of times the target gets to see the message
