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Kruka [31]
2 years ago
15

You need a down payment of $17,200 in order to purchase your first home 4 years from today. You currently have $14,014 to invest

. In order to achieve your goal, what nominal interest rate, compounded continuously, must you earn on this investment
Business
1 answer:
Inga [223]2 years ago
6 0

Answer:Interest rate must be R = 6.04%

Explanation:

When an investment earns interest compounded continuously it means interest is earned constantly, Compound interest is usually calculated on monthly, quarterly semi annual and annual intervals. Continuous compounding is theoretical concept which aims to calculate interest at the smallest possible interval.

Future Value = $17200

Present Value = $14014

n = 4

Future Value = Present Value x e^rn

$17200 = $14014 x e^(r x 4)

e^(r x 4) = 17200/14014

e^(r x 4) = 1.2273440845

e = 2.7182818285

(2.7182818285)^(r x 4) = 1.2273440845

(r x 4)log(2.7182818285) = log(1.273440845)

r x 4 =  log(1.273440845)/log(2.7182818285)

r x 4 = 0.2417225636

r = 0.2417225636/4 = 0.0604306409

R = 6.04%

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. ________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impr
777dan777 [17]

Answer:

D. Positioning.

Explanation:

Positioning is a market strategy that tries to create a product with similar features to that of its competitors and tries to drive the image through marketing.



This ịs a very powerful marketing concept because it builds a product's reputation and makes it distinguishable from the products of other competitors. This is done to try to occupy the mind of its intended customers and get them to see the difference between their product and that of rival companies. This type of advertising has become very common.

5 0
1 year ago
Which of the following factors does not affect the initial market price of a stock?
MissTica

Answer:

The correct answer is (C)

Explanation:

Generally the common stocks worth per share is normally a limited quantity, for example, $0.05 or $0.01 and it has no association with the market estimation of the price of stock. The standard worth is once in a while referred to as the regular stocks.  The par value has no connection with the price of the stock.

7 0
1 year ago
Berry, the seller, wants Paul, the broker, to change from a single agency relationship to a transaction broker. Paul agrees to d
Scorpion4ik [409]

Answer:

Before the listing agreement is signed.

Explanation:

A listing agreement is a contract between a property owner and a real estate broker asking the real estate broker to get a buyer for his or her property. The property owner implements the listing agreement so as to empower the real estate broker to act in the capacity of the agent to the owner in the course of trying to sell the property. Generally certain commission is paid to the real estate broker by the property owner.

8 0
1 year ago
Pleasantville maintains an appropriations ledger for police department supplies. The amount appropriated for supplies was $100,0
satela [25.4K]

Answer:

Appropriation available for spending = 37000

Explanation:

In the appropriations ledger, the amount available for spending at any moment is the total appropriation minus expenditures plus outstanding encumbrances.

100000 - 35000 - 28000 =  37000

3 0
2 years ago
Bay City Mining, Inc. has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, an
weqwewe [10]

Answer:

a. 50, which is high by historical standards.

Explanation:

a. 50, which is high by historical standards.

It is high because  current price  is high than earnings.

Earning yield is  the reciprocal of price earning ratio that is = 1/ (P/E ratio) expressed as a percentage.

So

PRice Earning ratio = Market price per share/ Earning per share

Price Earning ration= $20/ 0.4 = 50

Earning per share= Earnings/ No of shares outstanding

EPS= $ 1 million/$ 2.5 million = 0.4

5 0
1 year ago
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