Answer:
PV= $105,206.99
Explanation:
Giving the following information:
Future Value (FV)= $150,000
Number of periods= 6*2= 12 semesters
Interest rate= 0.06/2= 0.03
<u>To calculate the present value (PV), we need to use the following formula:</u>
PV= FV/(1+i)^n
PV= 150,000 / (1.03^12)
PV= $105,206.99
Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows default risk differences.
The more credit danger related to an enterprise the better the fee of going back presented on its monetary contraptions, and that is reflected in the example given within the query. The T bond has the lowest chance of default due to the fact it's far assured by using the Treasury, so the return is the lowest.
The excellent-rated company bond has the bottom return among company bonds, and the worst-rated pays the best return bonds can be noncallable for a time period, giving a length of constant hobby payments to the customer after which, become callable after that period to allow the company to reset the interest fee at the debt specifically if the marketplace has changed. Noncallable security is a monetary safety that can't be redeemed early by the company besides from the fee of a penalty.
Learn more about The interest rate here:-brainly.com/question/3405605
#SPJ4
Answer:
2) Set the price of each piece of furniture equal to the marginal cost of producing it.
Explanation:
What happens in two-part tariff is that the producer recovers the entire cost of producing by charging price equal to the marginal cost.
This helps him recover cost and the entire fee the producer charges results in profits eventually. Hence, the profits is the consumer 'surplus' that we calculate given that the price of product is equal to marginal cost.
So answer here is 2- Set the price of each piece of furniture equal to the marginal cost of producing it.
I think b is the correct answer
Answer:
A 15.64%
Explanation:
300*1.18 = 354
354*0.02 = 7.08
354 - 7.08 = 346.92
rate of return = 346.92/300
= 15.64%
Therefore, The rate of return on the fund is 15.64%
