Answer:
Simple rate of return on Investment = 6.34%
Explanation:
As per the data given in the question,
Initial investment = $804,600
Realisable value = $22,400
Net cash flow = $804,600 - $22,400
= $782,200
Annual income:
Net income = Cash savings - Depreciation
= $139,000 - $89,400
= $49,600
Simple rate of return on Investment = Net income ÷ Net cash flow
= $49,600 ÷ $782,200
= 0.0634
= 6.34%
Answer:
The total cost of establishing the portfolio is $2054.95.
Explanation:
The present value of a bond is given as
For 1 year zero-coupon bond is
- FV is 500
- r is 7% or 0.07
- n is 1
So the value is
Similarly, for 3 years zero-coupon bond is
- FV is 2000
- r is 8% or 0.07
- n is 3
So the value is
So the total cost is
Total Cost=Cost of 1-year zero-coupon bond+Cost of 3-years zero-coupon bond
Total Cost=$ 467.29+$ 1587.66
Total Cost= $ 2054.95
So the total cost of establishing the portfolio is $2054.95.
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HistoryGuy says that the president can't <span>Vote to impeach a government official.</span>
Gross Domestic Product The informal market transactions that create increases in production produced are not taken into account, which leads to an underestimation of the real quantity of output produced in an economy.
This is further explained below.
<h3>What is
Gross Domestic Product?</h3>
Generally, Gross domestic product (GDP) is a monetary measure of the total market value of a country's final products and services generated within a certain time period.
This metric undergoes numerous iterations before being regarded a trustworthy signal because of its complexity and subjectivity.
In conclusion, The Gross Domestic Product a method that, due to the fact that informal market transactions lead to increases in production created, estimates to be lower than the actual quantity of output produced by an economy.
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The pros and cons of the Adjustable-Rate Mortgages are consistent payments and lower interest rates possible.
<h3>What is Mortgage?</h3>
Mortgage refers to the agreement between the lender and the buyer which involves the exchange of the money.
When person and a lender enter into a mortgage, the lender is granted the power to seize your property if person are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.
Adjustable-Rate Mortgages is the loan which is granted for the homes which depends on the market as it does not has the fixed rate of interest.
The ARS mortgage type offers comfortable consistent payments, and over time, reduced interest rates may be feasible. However, there is a chance that interest will grow, which could be a drawback.
Learn more about Adjustable-Rate Mortgages here:
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