Answer:
The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.
Explanation:
The depreciation cost per unit is computed as:
Depreciable asset = Cost - Salvage Value
= $205,860 - $7,900
= $197,960
Depreciation per unit = Depreciable asset /Useful life expected value
= $197,960 / 141,400
= $1.4
Therefore, the per unit cost is $1.4
Answer:
Explanation:
The Risk neutral probability is given by
e
rt
−
D / U-D
U=1.1
D=0.9
R=0.12
T=3/12
π
u
=
e∧
0.12
∗
3
/
12
−
0.9
/1.1
−
0.9
=0.652
π
d
=
1−
0.652
=
0.348
The values of american and european options at each node is given in the following table.
0.652
0
0.81 48.4
0.652
0.81
American option value 2.54 44
probability 0.652/0.3478'
Option value 2.12 2.4
Futures price 40 6 39.6
0.3478
4.76
36
0.3478
9.6
32.4
Time period 0 3 6
the value at up node at 3 months is given by = (
0.652∗
0
)
+
(
0.3478
∗
2.4
)/e
∧0.12
∗
3
/
12 = 0.81
Hence, value of european put option =$2.12
Value of American put option = 2.54
Hi there
The formula is
A=p (1+r/k)^kt
A future value?
P present value 1500
R interest rate 0.06
K compounded semiannual 2
T time 5 years
So
A=1,500×(1+0.06÷2)^(2×5)
A=2,015.87
Good luck
Answer:
$985.25
Explanation:
The $51,233 is Dr. McCoy's annual salary; the total amount she earns in a year
We have about 52 weeks in a year
To determine the weekly salary, you will set up the equation like this;
<em>If 52 weeks = $51,233</em>
<em>then 1 week = ?</em>
Multiply 1 by $511,233 ; 1 * 51,233 =$51,233
Next, divide the above $51,233 by 52;
$51,233/ 52 = $985.25
Her weekly salary is therefore $985.25