Ask question

Ask question

All categories

2 years ago

7

Your father paid $10,000 (cf at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then

an additional lump sum payment of $10,000 at the end of the 5th year. what is the expected rate of return on this investment? 7.88%

1 answer:

andrew-mc [135]2 years ago

7 0

10,000 + 750 + 10,000 = 20,750 / 365 = 1 year = 4,150 . interest 4,150 ÷ 7.88 = 526.649746192834 $ amount

You might be interested in

"The theory of bureaucratic behavior indicates that the Fed never operates in the public interest." Is this statement true, f

Anna007 [38]

False. Maximizing one's welfare does not rule out altruism.

Reason :

The theoretical concepts that treat private sector economizing behavior are often extended to the public sector. Private managers try to maximize a residual (profit), while bureaucrats try to maximize their budgets. This model of bureaucratic behavior has been popularized by Parkinson in mock-scientific fashion.

What is the theory of bureaucratic Behavior?

The theory of bureaucratic behavior assumes that actors are rational and seek to maximize their own welfare and profit.

What is the main concept of bureaucracy?

bureaucracy, specific form of organization defined by complexity, division of labor, permanence, professional management, hierarchical coordination and control, strict chain of command, and legal authority. It is distinguished from informal and collegial organizations.

What is the theory of bureaucratic behavior and how can it be used to explain the behavior of the Federal Reserve?

The theory of bureaucratic behavior suggests that one factor driving central banks' behavior might be their attempt to increase their power and prestige. This view explains many central bank actions, although central banks may also act in the public interest.

Learn more about Theory of bureaucratic behavior :

brainly.com/question/24284407

#SPJ4

8 0

9 months ago

winn co. signs a 60 day note payable for a $15,000 copy machine with an interest rate of 8%. winn will record total interest exp

PolarNik [594]

Based on the information given Winn will record total interest expense of $200.

Using this formula

Total interest expense=Principal amount× Interest rate ×Time

Where:

Principal amount=$15,000

Interest rate=8%

Time=60 days/360

Let plug in the formula

Total interest expense=$15,000 x .08 x (60/360) = $200.

Total interest expense=$200

Inconclusion Winn will record total interest expense of $200.

Learn more here:

brainly.com/question/25388945

5 0

2 years ago

Read 2 more answers

Porter Veterinary Services recently purchased several new stock trailers for their equine and bovine clients. The stock trailers

Elina [12.6K]

Answer: Financial

Explanation:

During the process of buying assets with longer life span, such as stock trailers, most organizations make use of cash gotten during financial activities to foot the bills, while cash accrued during operational activities are rather used to buy assets with shorter life span. Generally during the time of investing there is always decrease in excess cash as to supplying cash for some other activities.

4 0

3 years ago

a call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $4. A put option on Ju

bogdanovich [222]

Answer:

$75.01

Explanation:

Given:

Call price (C): $4
Put price (P): $2.5
risk-free rate (r): 2% = 0.02
Time: 1 year
Exercise price (K): $75

Let Share price: $S_{0}$

As per put-call party, we have the following equation:

C + K $e^{-rt}$ = P+ $S_{0}$

<=> $S_{0}$ = C + K $e^{-rt}$ - P

<=> $S_{0}$ = 4 + 75* $e^{-0.02*1}$ - 2.5

<=> $S_{0}$ = 1.5 + 73.51 = $75.01

So the the stock price is $75.01

6 0

2 years ago

Unit: Technology for Communication

Cloud [144]

Small business have different on boarding techniques for which they appoint managers which describe people roles in the company.

Various business offers various managerial opportunities to people to join and contribute to the welfare of the organization and their growth by joining the small business assosciate and as managers.

Staffing includes various on boarding techniques which provide and appoint process managers responsible for proper work and report relationships in the organization.

To learn more about on boarding techniques here,

brainly.com/question/15171779

#SPJ1

8 0

3 months ago