Answer:
D. For a higher interest rate, an annuity has a smaller future value
Explanation:
If the interest rate increases, then the capitalization factor on the annuity increases making the annuity future valeu increase:
on the capitalziation factor we got rate in both part of the division:
on the top part is being added a unit and power to t
while in the other it doesn't change.
While it is true that a higher dividend makes the quotient decrease, the increases in the top part exceeds by far the increase in the bottom part, making increase the quotient.
<span>Capital as a factor of
production is defined as the tangible products made by labor.
</span>Land as a factor of
production means not just the surface of the earth, but everything in the
universe that wasn't created by people. This includes all natural resources,
such as air, water, plants, sunlight, rocks, and minerals.
Examples:
1) Clothes ( because you have to be clothed)
2) Milk ( you immediately want to consume it)
3) Wine ( grapes go in wine comes out)
You don't need to use the parenthesis I just wanted to explain to help you understand.
Answer:
The occurrence would be more impactful in 1995 as the % drop is higher
Explanation:
In 1995, % change in DJIA = 135 / 4510.79 = 0.029928 = 2.99%
Today, the DJIA is at 29,263.48 . The % change in DJIA = 500 / 29,263.48 = = 0.017086143 = 1.71%
.
Thus, In 1995, the occurrence would be more impactful as the % drop is higher
Answer: a) $66,388.86
the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
Explanation:
Given that;
Annuity = $150
r = 10%
Earl is 25years now
Earl plans to withdraw the money when he is 65
which mean Period N = ( 65 - 25 ) = 40
To find the future value, we use use the express
Future value = annuity × (((1+r)^n)-1)/r)
we substitute our values
Future Value = 150 × (((1 + 10/100)^40)-1)/10/100)
= 150 × (((1.10)^40)-1) / 0.01)
150 × ((45.2592 - 1)/0.1)
150 × 442.5924
Future Value = $66,388.86
therefore the total sum Earl will receive when he withdraws the money in his 65th birthday is $66,388.86
Answer: -13.35%
Explanation:
Based on the information given in the question, the annual rate of return on this painting will be calculated thus:
Sales price of painting = $1,080,000
Cost price of painting = $1,660,000
The sales Price formula is given as
= Cost price × (1 +r)³
1080000 = 1660000 × (1+r)³
1,080,000/1,660,000 = (1+r)³
0.65 = (1 + r)³
Annual rate of return r will now be:
= 0.6506^⅓ - 1
= -13.35%
