Answer:
7.53%
Explanation:
Calculation for the discount rate of d(0,4)d(0,4)
The discount factor is : d=1/1+i
And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.
Therefore the present value of a bond with a maturity value of 1 will be;
Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)
Present value=1 / (1.07) (1.073) (1.077) (1.081)
Present value=0.748
The present value of a bond with a maturity value of 1 will therefore be 0.748.
Now, let calculate the discounting factor for the whole 4 years:
1 (1+d (0,4))‐⁴ =0.748
(1+d(0,4))=0.748‐¹/⁴
1+d (0,4) =1.0753
d (0,4)=0.0753
Therefore the discount rate will be 7.53%
Answer:
The answer is: $6,900
Explanation:
To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:
- total loss $200,000 x 0.002 = $400
- 50% loss $100,000 x 0.01 = $1,000
- 25% loss $50,000 x 0.1 = $5,000
Total $6,400
If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.
Answer:
1. using plans as a standard for measuring performance.
Explanation:
Strategic planning is an important process that enables a business or an organization to have a sense of direction, goal orientation, and also enables them to evaluate and measure progress.
It is important when carrying out the strategic planning process to first focus on clarifying and developing the vision, mission and objectives of the business before moving on to strategy formulation, this helps to give a sense of direction.
In the process of strategic planning, involving key employees cannot be overemphasized. Giving key employees the chance to be involved in the planning process will enable them to connect to the business and set them up for success.
Apart from the fact that strategic planning provides a sense of direction, it also enables a business to outline goals that can be measured, hence providing a standard for measuring performance.
Answer:
The court will probably look at the custom usage of trades on similar contracts and provisions.
Explanation:
Usage of trade refers to business practices that are so commonly accepted and carried out that anyone can expect that they are included in the transactions.
