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2 years ago

An investment costs $3,460 and pays $250 in perpetuity. what is the interest earned on this investment?

1 answer:

8 0

Given: -
Investment cost = $3,460
Perpetuity = $250
We need to find interest on investment.
Solution: -
Interest on investment = (Perpetuity/Investment Cost) * 100
Putting values in above formula,
($250/$3,460) * 100 = 7.225%

Interest on investment = 7.225%

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You purchase a bond with a coupon rate of 5.3 percent and a clean price of $951. Assume a par value of $1,000. If the next semi

olchik [2.2K]

Answer:

The invoice price is $ 969.

Explanation:

This question requires us to tell the invoice price (dirty price) of the bond. Clean price is given in the question. So we can easily calculate invoice price by adding accrued interest in dirty price. Detail calculation is given below.

Clean price = $ 951 -A

Accrued Interest = (5.3% * 1000)/12*4 = $ 17.67 -B

Invoice price = A+B = $ 969 (approx)

4 0

2 years ago

A firm's primary objective is to maximize profits; however, there are always two constraints:

alekssr [168]

Two constraints to maximizing profit are cost of production and consumer demand.

Consumer demand is essential for revenue. Competition and budget can affect demand and put constraints to profit maximization. Cost of production can constraint profits maximization too because the higher the cost of raw material, the higher the cost of production will be, which in turn will affect the price of the product. This increase in price can also affect the demand.

The answer is then D.

7 0

2 years ago

The participants in a television quiz show are picked from a large pool of applicants with approximately equal numbers of men an

IgorLugansk [536]

Answer:

a) $P(X \leq 2)= P(X=0)+P(X=1)+P(X=2)$

$P(X=0)=(11C0)(0.5)^0 (1-0.5)^{11-0}=0.00049$

$P(X=1)=(11C0)(0.5)^1 (1-0.5)^{11-1}=0.0054$

$P(X=2)=(11C0)(0.5)^2 (1-0.5)^{11-2}=0.027$

And adding we got:

$P(X \leq 2)= 0.033$

b) $P(X \geq 2)= 1-P(X$

And replacing we got:

$P(X \geq 2)= =1-[0.00049 +0.0054] = 0.994$

c) $P(X \leq 1)= 1-P(X$

And replacing we got:

$P(X \leq 1)=0.00049 +0.0054= 0.0059$

Explanation:

Previous concepts

The binomial distribution is a "DISCRETE probability distribution that summarizes the probability that a value will take one of two independent values under a given set of parameters. The assumptions for the binomial distribution are that there is only one outcome for each trial, each trial has the same probability of success, and each trial is mutually exclusive, or independent of each other".

Solution to the problem

Let X the random variable of interest "number of women", on this case we now that:

$X \sim Binom(n=11, p=0.5)$

The probability mass function for the Binomial distribution is given as:

$P(X)=(nCx)(p)^x (1-p)^{n-x}$

Where (nCx) means combinatory and it's given by this formula:

$nCx=\frac{n!}{(n-x)! x!}$

Part a

For this case we want to find this probability:

$P(X \leq 2)= P(X=0)+P(X=1)+P(X=2)$

$P(X=0)=(11C0)(0.5)^0 (1-0.5)^{11-0}=0.00049$

$P(X=1)=(11C0)(0.5)^1 (1-0.5)^{11-1}=0.0054$

$P(X=2)=(11C0)(0.5)^2 (1-0.5)^{11-2}=0.027$

And adding we got:

$P(X \leq 2)= 0.033$

Part b

For this case we want this probability:

$P(X \geq 2)$

And we can use the complement rule and we got:

$P(X \geq 2)= 1-P(X$

And replacing we got:

$P(X \geq 2)= =1-[0.00049 +0.0054] = 0.994$

Part c

For this case we want this probability:

$P(X \leq 1)$

And we can use the complement rule and we got:

$P(X \leq 1)= 1-P(X$

And replacing we got:

$P(X \leq 1)=0.00049 +0.0054= 0.0059$

6 0

2 years ago

On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of pas

Lapatulllka [165]

Answer:

Check the explanation

Explanation:

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.

3 0

2 years ago

A 10 percent increase in income leads to a 15% decrease in the quantity of macaroni and cheese demanded but no change in the pri

AlekseyPX

Answer:

Macaroni and cheese is an inferior good.

Explanation:

From the information given in the question, we can assume that macaroni and cheese are considered as an inferior good for this consumer because there is an inverse relationship between the income level of this consumer and the quantity demanded for macaroni and cheese.

If there is 10% increase in the income of an individual then as a result quantity demanded of macaroni and cheese decreases by 15% and the price of this good remains constant. This shows that macaroni and cheese is an inferior good.

6 0

2 years ago