Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer: a. less than fully rational; behavioral biases
Explanation: Information processing errors consist of forecasting errors
, overconfidence and conservatism which can lead investors to misestimate the true probabilities of possible events or associated rates of return; and assuming information processing was perfect, individuals would tend to less-than-fully rational decisions due to behavioral biases as confirmed by several studies.
Answer:
Final balance = $ 14,272.93
Explanation:
Annual Deposits(PMT) = $1,000
Number of years(N) = 12
Rate of interest (r) = 3.1% = 0.031
Future Value = ?
Computation:
![Future\ Value = PMT[\frac{(1+i)^n-1}{i} ] \\Future\ Value = 1,000[\frac{(1+0.031)^{12}-1}{0.031} ] \\Future\ Value = 1,000[\frac{(1.031)^{12}-1}{0.031} ] \\Future\ Value = 1,000[\frac{1.44246-1}{0.031} ] \\Future\ Value = 1,000[\frac{0.44246}{0.031} ] \\Future\ Value = 1,000[14.2729] \\Future\ Value = 14,272.9252](https://tex.z-dn.net/?f=Future%5C%20Value%20%3D%20PMT%5B%5Cfrac%7B%281%2Bi%29%5En-1%7D%7Bi%7D%20%5D%20%5C%5CFuture%5C%20Value%20%3D%201%2C000%5B%5Cfrac%7B%281%2B0.031%29%5E%7B12%7D-1%7D%7B0.031%7D%20%5D%20%5C%5CFuture%5C%20Value%20%3D%201%2C000%5B%5Cfrac%7B%281.031%29%5E%7B12%7D-1%7D%7B0.031%7D%20%5D%20%5C%5CFuture%5C%20Value%20%3D%201%2C000%5B%5Cfrac%7B1.44246-1%7D%7B0.031%7D%20%5D%20%5C%5CFuture%5C%20Value%20%3D%201%2C000%5B%5Cfrac%7B0.44246%7D%7B0.031%7D%20%5D%20%5C%5CFuture%5C%20Value%20%3D%201%2C000%5B14.2729%5D%20%5C%5CFuture%5C%20Value%20%3D%2014%2C272.9252)
Final balance = $ 14,272.93
Answer:
1.3 million Impaired asset is the determined amount
Explanation:
Asset impaired as the estimated fair value cash flows is lower than book value
Impairment loss = Fair value - Book value
= 3.0 million - 4.3 million
= 1.3 million Impaired asset
An impaired asset is an asset that has a market value less than the value which was disclosed on the organisation balance sheet. When an asset is said to be impaired, it will need to be written down on the company's balance sheet to its current market value.
