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Maslowich
1 year ago
10

Suppose an investment broker offers to sell you a financial asset for $850. You will receive only one payment of $1,000 five yea

rs from now. What interest rate would you earn if you bought the financial asset at the offer price
Business
2 answers:
avanturin [10]1 year ago
6 0

Answer:

The interest rate is 0.06%

Explanation:

Step one :

Given data

final amount $1,000

initial principal balance $850

annual interest rate=?

time (in years)=5 years

Step two:

Applying the

Simple interest/Formula

A = P (1 + rt)

A = final amount

P = initial principal balance

r = annual interest rate

t = time (in years)

Plugin our data into the formula We have

1000=850(1+r*5)

1,000=850(1+5r)

Opening bracket we have

1,000=850+4,250r

Colleting like terms we have

1000-850=4250r

250=4,250r

Dividing both sides by 4,250 we have

r=250/4250

r=0.058

Hence the interest rate is 0.06%

Nitella [24]1 year ago
3 0

Answer:

0.035%

Explanation:

Using the formula for calculating simple interest.

Simple interest = Principal × Rate × Time/100

Since Amount = Principal + Interest

Interest = Amount - Principal

Interest = $1000 - $850

Interest = $150

If time = 5years

Principal = $850

To get the interest rate, we will substitute the given data into the simple interest formula to have;

$150 = ($850×Rate×5)/100

Cross multiplying

$15,000 = 425000×rate

Interest Rate = 15000/425000

Interest rate = 0.035%

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Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment.
solniwko [45]

Answer:

the income that recognized on this investment is $10,500

Explanation:

The computation of the income recognized on this investment for the year 2021 is shown below"

= dividend × share of ownership

while

The dividend is $70,000

And, the share of ownership is 15%

Now place these values to the above formula

= $70,000 × 15%

= $10,500

hence, the income that recognized on this investment is $10,500

3 0
1 year ago
Midyear on July 31st, the Digby Corporation's balance sheet reported: Total Liabilities of $77.152 million Cash of $6.030 millio
jonny [76]

Answer:

$45.027 million

Explanation:

The accounting equation shows the relationship between the various elements of the balance sheet. These are the assets, liabilities and equity. It is given as

Assets = Liabilities + Equity

The owner's equity is made up of the common stock and retained earnings (which is the net income less dividend paid over the period).

Equity = $125.989 million - $77.152 million

= $48.837  million

Retained earnings = Equity - Common stock

= $48.837  million - $3.810 million

= $45.027 million

Digby Corporation's retained earnings is $45.027 million

5 0
1 year ago
You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,500
maria [59]

Answer:

Present Value= $19,652.37

Explanation:

Giving the following information:

You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,500 in two years. If you have an investment opportunity that guarantees 7% interest.

PV= FV/(1+i)^n

PV= 22,500/ (1.07^2)= $19,652.37

6 0
2 years ago
Rupert runs his own company and does all the hiring personally to ensure. Fit with the rest of the organization he’s built, wich
Westkost [7]
Do know how to follow instructions and work as a team
7 0
2 years ago
Which are examples of copyrighted online materials? Check all that apply. an article from an Internet magazine lyrics for a song
agasfer [191]

Answer:

The correct options are;

Photos taken by a student in his blog

An illustration sold by an artist on her website

An excerpt from a novel published in 1913

Explanation:

With the copyright law the holder of a copyrighted material has the exclusive authority to grant permission to others to create from, copy, distribute, or display in public, the copyrighted material.

A copyright is said to have expired and to be in public domain (with automatic permission to use) when it has been up to 120 years since it was created. Government created material are not covered by the copyright law and can be used

Copyright material can only be used without the express permission of the copyright owner when it is covered by the TEACH Act of the usage must be taken as "fair use"

Therefore,

1) photos taken by a student in his blog

2) An illustration sold by an artist on her website

3) An excerpt from a novel published in 1913  are copyrighted online materials.

7 0
2 years ago
Read 2 more answers
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