Answer:
Ans. the rate of return of this invesment is 3.5278% annual.
Explanation:
Hi, what we need to do here is to find the future value of all six payments, beginning when the child turns 12, which will end when he turns 17. One year later (when the child turns 18) he will receive $25,000 per year, for the next 4 years. This is the equation that we need to use (and solve for "r").
Where:
A1=$14,000
A2=$25,000
So, everything should look like this
As you can see, this would take forever to solve, so what we have to do is to use MS Excel, we have to use the "Goal Seek" function. Please check the MS Excel spread sheet attached to this answer.
Please use this function with the following parameters.
Set Cell: G7
To Value: 0
By changing cell: G2
Ans. 3.5278%
Best of luck.
Answer:
The growth of the real GDP per capita was 7.18%
Explanation:
It is important to establish that:
Future Value = Present Value × ((1 + r)^t), given that <em>r</em> is the <em>interest rate</em> and <em>t</em> is the <em>time period</em>
Real GDP per worker increased from $40,000 to $320,000 in 30 years
Therefore, we have;
320000 = 40000*(1+r)^30
(1 + r)^30 = 8
1 + r = 8^1/30
1 + r = 1.0718
r = 0.0718 = 7.18%
Difference between the purchase price of the home and its current market price
Answer:
The correct answer is letter "C": average person in the economy.
Explanation:
The Gross Domestic Product (GDP) measures the level of output of a country given a certain period -by quarter and year, usually. It considers <em>government expenditures, private investments, consumer spending, </em>and <em>net exports </em>(exports minus imports).
The GDP per capita represents the GDP per person and is calculated by dividing the GDP by the population of a country. GDP per capita represents an approximate of the expenses of an individual. Smaller richer countries such as Luxembourg or Switzerland tend to have higher GDP per capita.
True because workplace etiquette is behaving with manners and kindness
