Answer:
- <u>The rate of return is 8.15%</u>
- <u>This is a good investment</u>
<u></u>
Explanation:
For the first question, you need to find the rate that makes the present value of a stream of ten constant annual payments of $15,000 equal to the $100,000 investment.
The formula that returns the present value of a constant payment is called the annuity formula and is:
![Present\text{ }value=payment\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]](https://tex.z-dn.net/?f=Present%5Ctext%7B%20%7Dvalue%3Dpayment%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5Cbigg%5D)
In your problem you know:
- Present value: $100,000
- payment: $15,000
- r: ?
- t: 10
You cannot solve for r directly. You must guess a value and calculate the right side of the equation until to you find the rate that makes it equal to 100,000.
Try 5%:
![\$15,000\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{10}}\bigg]=\$115,826](https://tex.z-dn.net/?f=%5C%2415%2C000%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B1%7D%7B0.05%7D-%5Cdfrac%7B1%7D%7B0.05%281%2B0.05%29%5E%7B10%7D%7D%5Cbigg%5D%3D%5C%24115%2C826)
Then, the rate of return is greater than 5%. After several trials you will find that the rate of return is 8.15%.
Since this rate is higher than 8%, which is what the company requires, this is a good investment.
Answer:
I hope it helps .in case you don't understand any part ,feel free to ask.
Answer:cost of each pound of apple= $3
And cost of each pound of orange =$2
Step-by-step explanation:
Step 1
Let cost of apples = x
And cost of Oranges =y
Let 6 pounds of apples and 3 pounds of oranges cost 24 dollars be represented as
6 x + 3y= 24----- equation 1
Also, Let 5 pounds of apples and 4 pounds of oranges cost 23 dollars be represented as
5x+ 4y= 23----- equation 2
Step 2
6 x + 3y= 24----- equation 1
5x+ 4y= 23----- equation 2
Using substitution method to solve the equation
6 x + 3y= 24
24-6x=3y
y= 24-6x/3 = 8-2x
Y= 8-2x
Substituting the value of y= 8-2x into equation 2
5x+ 4( 8-2x)= 23
5x+ 32 -8x= 23
32-23= 8x-5x
9=3x
x=9/3
x=3
Putting the value of x= 3 in equation 1 and solving to find y
6 x + 3y= 24
6(3) +3y= 24
18+3y=24
3y= 24-18
3y=6
y=6/3= 2
Therefore the cost of each pound of apple= $3
And cost of each pound of orange =$2
Not sure what you’re asking, but, if you’re looking for the expanded form... hope that helps?
The only values a cosine can have are from -1 to 1.
