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Trava [24]
2 years ago
12

What is the future value of $375 at an interest rate of 3 percent one year from today? a. $371.75 b. $393.33 c. $386.25 d. none

of the above are correct to the nearest cent?
Business
1 answer:
IgorLugansk [536]2 years ago
3 0
The future value of a current investment is calculated through the equation,
    F = P x (1 + i)^n

where F is the present value, F is the future value, i is the nominal interest rate, and n is the number of years.

Substituting the known values,
   F = ($375)(1 + 0.03)^1 = $386.25

Hence, the answer to this item is letter C. 
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1 year ago
Select all the statements that are true about Secondary Markets only.
Contact [7]

Answer:

The secondary market is the market in which securities are traded. This market no longer accumulates new financial resources for the issuer, but only reallocates resources among subsequent investors.

As a resale mechanism, it allows investors to freely buy and sell securities. In the absence of a secondary market or its weak organization, the subsequent resale of securities would be impossible or difficult, which would discourage investors from buying all or part of the securities. As a result, society would be left on the losing side, since many, especially the newest, undertakings would not receive the necessary financial support.

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1 year ago
Match to correct letter option
dusya [7]

Answer:

A. Money left over after taxes are paid - Disposable income

B. Quantity theory of money helps explain the shape of this - Real

C. Part of GDP s definition that captures the quality of goods and services - Market Value

D. Caused by a fall in the money supply - Final

E. Part of GDP s definition that means you exclude used goods and services - Real

F.  Sticky prices/wages justifies its shape - Final

G. Part of GDP s definition that means you exclude intermediary goods and services - Market Value

H. Used to make loans - Excess reserves

I. Used to cover withdraws - Disposable income

J. Interest rates are at their lower bound - Real

K. Represents the economy s fundamentals, such as population, capital, and technology - LRAS

L. Adjusted for inflation Final

M. Caused by a collapse of the stock market - Market Value

Explanation:

Long run aggregate supply is adjusted based on the products produced in the country. The supply rate is also adjusted based on demand factor. GDP is the monetary value of all goods and services produced in the country during a certain period.

5 0
1 year ago
Tropetech Inc.’s FCFs are expected to grow at a constant rate of 4.62% per year in the future. The market value of Tropetech Inc
weeeeeb [17]

Answer:

The total firm value is $10,877 million

Explanation:

Value of Firm = Expected FCF/(WACC - Growth Rate)

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                       = $1,005 million / 0.0924

                       = $10,877 million

Therefore, The total firm value is $10,877 million

6 0
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A bookstore costs $90 a day to keep open, and spends $12 for each book it sells. The store charges $18 for each book it sells. I
vekshin1

Answer:

C

Explanation:

6 0
1 year ago
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