The future value of investment is 4031.07 , get this by the property of future value.
What does future value mean?
What is future value, exactly? Future value (FV), a financial concept, determines the worth of an asset depending on variables like predicted future interest rates or cashflows. An investor may find it useful to know how much their investment would be worth in five years given an anticipated rate of return.
Future value is the sum of money that is currently invested and will eventually become given enough time and an interest rate. As an illustration, if you deposit $1,000 now and get 2% interest annually, your money will be worth $1,020 after a year. Therefore, its future worth is $1,020.
The formula for Future value = l(1+i)^n
so, = $3200(1+18%)^3
= $3200* 1.2597
= $4,031.07
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The salary double up after 25 years based on the inflation rate of 2.9 percent
What is the rule of 72?
The rule of 72 indicates the number of years it takes an amount of money to double, it is determined as the 72 divided by the inflation rate which is also the growth rate of salary in this case.
Years to double salary=72/growth rate
growth rate=2.9(without the % sign)
Years to double=72/2.9
Years to double=25 years
Approximately , rounded to the nearest years, it would take 25 years for the salary to double.
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Answer:
e. Portfolio P has the same required return as the market (rM).
Explanation:
The answer is e. Portfolio P has the same required return as the market (rM).
let's find the beta of the portfolio = 0.5 * 0.7 + 0.5 * 1.3 = 1.0
From the information above , the required return on the portfolio = risk free rate + beta * (Expected market return - risk free rate) = risk free rate + 1 * (Expected market return - risk free rate) = Expected market return.
Answer:
<em>A </em><em>command</em><em> </em><em>economy</em><em> </em><em>is </em><em>an </em><em>economic </em><em>system</em><em> </em><em>in </em><em>which </em><em>the </em><em>government</em><em>,</em><em> </em><em>or </em><em>the </em><em>central</em><em> </em><em>planner,</em><em> </em><em>determines</em><em> </em><em>what </em><em>goods </em><em>and </em><em>service </em><em>should </em><em>be</em><em> </em><em>produced,</em><em> </em><em>the </em><em>supply</em><em> </em><em>that </em><em>should</em><em> </em><em>be </em><em>produced,</em><em> </em><em>and </em><em>the </em><em>price</em><em> </em><em>of </em><em>goods </em><em>and </em><em>services</em><em>.</em><em> </em>
Answer: C, it's the market where foreign exchange rates are determined
Explanation: