Answer: Janice believe the inflation rate will be over 4%.
Explanation:
The expected return is 18% but Janice is thinking the return will be 14% because she is discounting the inflation which is 4%. She expects to receive 14% net rate (18%-14%= 4%).
Answer:
Y = $391.10
Explanation:
We have 0.125<em>B</em>(n-1) = i
B(n-1) = In = 142.78
So that B(n-1) = 142.78/0.125 = 1142.24
Furthermore, B(n-1) = <em>Px = Pv </em>= P/(1+0.125) = 1142.24
P/1.125 = 1142.24
P = 1142.24*1.125
P = 1285.02.
The total amount of the loan = Principal repaid as of time (n-1) + Principal repaid in last payment
= 6009.12 + 1142.24
= 7151.36
So, the total amount of the loan is 7151.36.
The principal repaid in the first payment Y = 1285.02 - 0.125*7151.36
Y = 1285.02 - 893.92
Y = $391.10
Answer:
equity, freedom, security, efficiency, growth
Explanation:
The economic goals include:
1. Equity: occurs in an economy when income and wealth are fairly distributed within a society.
2. Efficiency (efficiency freedom): is achieved when society is able to get the greatest amount of satisfaction from available resources in an economy
3. Economic growth: when there is an increase in the economy's ability to produce goods and services, often indicated by measuring the growth rate of production.
The other economic goals are:
Economic Stability, balance of payment, Price Stability or Controlling Inflation and Full Employment.
Answer:
The answer is: $9 million
Explanation:
The gross domestic product includes all the final and legal goods and services produced in an economy during one year.
Michigan Cranberry produced $10 million worth of cranberries, but in doing so, it imported $1 million worth of supplies from other countries. Cross border labor is included in the GDP.
The net addition of Michigan Cranberries to the US GDP is: $10 million - $1 million (imported supplies) = $9 million
Answer:
P0 = $9.04279 rounded off to $9.04
Option c is the correct answer
Explanation:
Using the the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the price of the stock today, we will use the following formula,
P0 = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3
Where,
- r is the required rate of return
P0 = 4 / (1+0.156) + 4 / (1+0.156)^2 + 4 / (1+0.156)^3
P0 = $9.04279 rounded off to $9.04