Answer:
NPV= 1,036.16
Explanation:
Giving the following information:
Initial investment= $9,000
Cash flows= $2,700 at the end of each of the next four years.
Interest rate= 3%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 2,700/1.03= 2,621.36
Cf2= 2,700/1.03^2= 2,545
Cf3= 2,700/1.03^3= 2,470.88
Cf4= 2,700/1.03^4= 2,398.92
Total= 10,036.16
NPV= -9,000 + 10,036.16
NPV= 1,036.16
Answer:
Real GDP is inflation adjusted hence there will be no role of inflation. Real GDP per Capita = Real GDP/ Population
Real GDP in year 1 = Real GDP per capita * population
Real GDP in year 1 = $36,000 * 500 million
Real GDP in year 1 = $18 trillion
Growth rate of Real GDP = 7%
herefore Real GDP in year 2 = x - 18/18 = 7/100
Real GDP in year 2 => 100x - 1800 = 126
Real GDP in year 2 => 100x = 126 + 1800
Real GDP in year 2 => 100x = 1926
Real GDP in year 2 => x = 19.26 trillion
So, Real GDP per capita in year 2 = 19.26 trillion /500 million= 38,520
The amount of accrued interest payable should B report in its September 30, 2021, balance sheet is: $27,000.
<h3>Accrued interest payable</h3>
Using this formula
Accrued interest payable=(Face value×Bond percentage)/Number of months
Let plug in the formula
Accrued interest payable=($900,000×12%)/12×3 months
Accrued interest payable=$27,000
(July 01 to September 31=3 months)
Inconclusion the amount of accrued interest payable should B report in its September 30, 2021, balance sheet is: $27,000.
Learn more about accrued interest payable here:brainly.com/question/7289766
I think it is False! Because it doesn't have a total amount of cash and checks to be documented at the bottom of the deposit slip.
Hope it helped!
-Charlie
Answer:
you should hold <u>76</u> shares of stock per 100 put options to hedge your risk.
Explanation:
Current stock price, S = $85
Risk-free rate of return, r = 5%
Standard Deviation, v = 25%
Exercise price, X = $90
expiration date, t (in years) = 30 days = 1 month = 1/12 = 0.083333 years
The option price (OP) is given by the formula:

![d_1 = [ln(S/X) + (r + v^{2} /2)t]/vt^{0.5}\\d_1 = [ln(85/90) + (0.05 + 0.25^{2} /2)*0.08333]/(0.25*0.08333^{0.5})\\d_1 = -0.6982](https://tex.z-dn.net/?f=d_1%20%3D%20%5Bln%28S%2FX%29%20%2B%20%28r%20%2B%20v%5E%7B2%7D%20%2F2%29t%5D%2Fvt%5E%7B0.5%7D%5C%5Cd_1%20%3D%20%20%5Bln%2885%2F90%29%20%2B%20%280.05%20%2B%200.25%5E%7B2%7D%20%2F2%29%2A0.08333%5D%2F%280.25%2A0.08333%5E%7B0.5%7D%29%5C%5Cd_1%20%3D%20-0.6982)

Using the pro-metric calculator for the cumulative normal distribution:
N(-d1) = N(- (-0.6982)) = N(0.6982) = 0.75747
N(-d2) = N(-(-0.7704)) = N(0.7704) = 0.77947

![OP =[ 90e^{(-0.05*0.08333)} * 0.77947] - (85*0.75747)\\OP = 5.48](https://tex.z-dn.net/?f=OP%20%3D%5B%2090e%5E%7B%28-0.05%2A0.08333%29%7D%20%2A%200.77947%5D%20-%20%2885%2A0.75747%29%5C%5COP%20%3D%205.48)
Note that N(-d₁) = 0.76
This means that 76/100 (i.e to hedge your risk, you should hold 76 per 100 put options )