Answer:
5.13%
Explanation:
Given:
Worth of investment today (PV) = $1,000
Investment worth after 6 years (FV) = $1,350
Time period of investment (nper) = 6 Years
It is required to compute annual return (RATE). This can be computed using spreadsheet function =RATE(nper,-PV,FV).
Substituting the values, we get =RATE(6,-1000,1350)
= 5.13%
Present value is negative as it is a cash outflow.
Therefore, annual return is computes as 5.13%.
The equation of (ending value minus beginning value) and income return totalled, then divided by beginning value is used to find "rate of return".
<h3>What is income returns?</h3>
The portion of a fund's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is calculated by adding the income return and the capital return together.
Rate of Return- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Some key features of rate of return are-
- ROI is computed by first dividing the net return by the investment's cost, then multiplying the result by 100. This new number, which represents the net return, is then obtained by subtracting the investment's original value from its final value.
- According to conventional thinking, a fair return on an investment in stocks is one that is at least 7 percent annually. Additionally, this relates to the S&P 500's average annual return when inflation is taken into account.
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Answer:
C. <u>not valid because performance depends on Parsley's personal skills</u>
Explanation:
A valid contract refers to an agreement entered into by parties which legally binds both parties and is enforceable under the law.
For a contract to be termed as valid, it must be performed by the parties to it.
Performance clause in a valid contract refers to doing or acting in a way as is required by the terms of the contract.
In the given case, Parsley signed a contract to provide services i.e provide French cooking lessons to Curry. Later, Parsley wants to transfer his duties to Relish.
The transfer will not be valid since the performance i.e service to be provided by Parsley are of personal nature and the consideration is based upon that. No two individuals can provide exact services.
Answer:
Case 1 = $9,420
Case 2 = 0
Explanation:
Determining the amount of impairment loss is given below:-
Case 1
Impairment loss = Amortized cost - Fair value
= $41,640 - $32,220
= $9,420
Case 2
Impairment loss = Amortized cost - Fair value
= 91,800 - $102,220
= 0
Since, the fair value is higher than Amortized cost so the value of Impairment loss in case 2 is 0.
Answer:
a, motivational
b, emotional
c, Rational
Explanation:
Employees engagement is level to which an employee has passion for his/her job (motivation), commitment to the firm (emotion) as well as his/her rational input in his/her efforts (rationality or use of discretion).
Employee engagement could be mistaken for employee satisfaction but they are not related.