g Suppose you buy a share of stock today for $5,000 and sell it for $9,000 at the end of four years. What interest rate will you have earned on your investment

Answers

Answer 1

You will have earned 7.62% interest on your money with the investment for $5,000 and sell it for $9,000 at the end of four years.

What is the interest rate?

Interest rate is the amount of interest paid each month, expressed as a percentage of the amount lent, invested, or borrowed. Borrowed money and total interest on borrowed money depend on the principal, the annual interest rate, the consistency of compounding interest, and the term of the loan, deposit, or borrowing.

Stock today = $5,000

Stock value after 8 years = $9,000

Future value = Present value × (1 + Rate of Interest)^Year

9,000 = 5,000 × (1 + Rate of Interest)⁸

1.80125 = (1 + Rate of Interest)⁸

1.0762 = (1 + Rate of Interest)⁸

Rate of Interest = 0.0762 which is 7.62%

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The full question is,

Suppose you buy a share of stock today for $5,000 and sell it for $9,000 at the end of eight years. What interest rate will you have earned on your investment?

8.95%

7.62%

6.87%

9.21%


Related Questions

What are some trends impacting human resource management?

Answers

Trends impacting human resource management  are: Automation, Big Data, Workplace Culture, Employee Engagement, Globalization.

What is human resource?
Human Resources (HR)
is the department within a company responsible for the management of people and their relationships. HR is responsible for recruitment, employee orientation and training, labor relations, payroll and benefits, employee performance management, and compliance with applicable laws and regulations. HR is also responsible for creating and implementing effective strategies to attract, retain, and motivate employees. The ultimate goal of HR is to ensure that the organization's human capital is used effectively and efficiently to meet the organization's goals and objectives.

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Lanning to finance higher education helps people prepare for their financial future because it teaches them about loans and interest. savings accounts. filing taxes. short-term goals.

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Planning to finance higher education helps people prepare for their financial future because it teaches them about funds management and loans and interest.

The oversight and management of an economic institution's cash flow is known as funds management. The fund manager will ensure that the deposit maturity schedules correspond to the loan demand. To do so, the manager examines the both obligations and the investments that affect the bank's capacity to provide credit.

Loan means the time period over which the borrower must repay the loan.  The rate that the quantity owed grows, usually expressed as an annual percent rate (APR) is known as Interest Rate. Loan Payments are defined as amount of cash that must be paid each month or week to gratify the loan terms.

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What is the main goal of free enterprise?

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The main goal of free enterprise is to promote economic freedom and competition.

How can businesses maximize their success under free enterprise? Businesses can maximize their success under free enterprise by utilizing the principles of supply and demand. They can increase their production levels to meet the needs of consumers and adjust their prices accordingly. Businesses can also focus on offering products or services that are in high demand, while cutting costs and minimizing waste. Additionally, businesses should take advantage of modern technology and digital marketing strategies to reach as many potential customers as possible. Finally, businesses should focus on customer satisfaction and establish a strong relationship with their customers. By following these strategies, businesses can maximize their success and drive growth in a free enterprise economy.

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Which of the following is not one of the potential responses to a specific risk event?
A. Sharing
B. Transferring
C. Ignoring
D. Mitigating
E. Retaining

Answers

Ignoring is not one of the potential responses to a specific risk event.

What is specific risk?For investors, specific risks are hazards specific to a particular company, industry, or sector. This is the opposite of general market risk or systematic risk. Certain risks are also known as non-systematic or diversifiable risks.Specific risk is the risk that an event will occur that  directly or indirectly affects the market value of an asset or a particular group of assets. Rumors of raw silicon shortages, for example, are a particular risk  computer and tech stocks are exposed to. Examples include news  specific to a stock or  group of companies, such as the loss of a patent or a major natural disaster affecting corporate operations. Unlike systematic  or market risks, certain risks can be diversified.

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The process of object-oriented analysis can be viewed as the following steps: A)identify objects, then define each object's attributes, behaviors, and relationships B)define data members and member functions, then assign the class name C)declare public and private variables, prototype functions, and then write code D)write the main() function, then determine which classes are needed

Answers

Object-oriented analysis is a process of analyzing the problem and identifying the objects which will be used to solve the problem. The process involves the following steps:

1. Identify the objects: First, the objects in the system are identified. This is done by looking at the problem to be solved, and analyzing what the system should do to solve it. Once the objects have been identified, each object's attributes, behaviors, and relationships should be defined.

2. Create the classes: After the objects have been identified and defined, classes are created for each object. Data members and member functions are declared for each class, and the class name is assigned.

3. Declare variables and functions: Public and private variables, as well as prototype functions, are declared.

4. Write the code: Once the variables and functions have been declared, the code is written.

5. Write the main() function: The main() function is written, which is the starting point of the program. This function determines which classes are needed and calls the appropriate functions.

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when a customer is interested in puchasing penny stocks, the broker dealer must generally disclose either prior to the transactions or with monthly accoutn statements which of the following

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When a customer is interested in purchasing penny stocks, the broker-dealer must generally disclose the current market quotation, compensation received, number of shares, risks, financial condition of an issuer, the fact that they may be acting as a market maker or liquidity provider, they may be a shareholder, and that the penny stock is a low-priced stock with greater risks.

When a customer is interested in purchasing penny stocks, the broker-dealer must generally disclose the following information either prior to the transactions or with monthly account statements:

The current market quotation for the penny stock, if any.The compensation received by the broker-dealer and any affiliated persons for selling the penny stock, including any compensation received in cash or securities.The number of shares to which such compensation relates.Any other facts that may be necessary to make the statements made, in light of the circumstances under which they are made, are not misleading.The risk of investing in penny stocks, which are typically highly speculative and volatile, and are subject to greater risks than investments in more established companies.The fact that broker-dealer is not required to disclose the financial condition of the issuer or the risks involved in the penny stock.The fact that the broker-dealer may be acting as a market maker or liquidity provider for the penny stock.The fact that the broker-dealer may be a shareholder of the penny stock.The fact is that penny stock is a low-priced stock and is subject to greater risks than investments in more established companies.

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the cooperative organization of work into specialized tasks and roles is the_________ A) planning B) organizing C) outsourcing D) leading

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D) leading, the cooperative organization of work into specialized tasks and roles is the leading. An organization type is a framework that describes how actions take place inside an organization to meet its objectives.

An organization is a collection of individuals who cooperate, such as a firm, neighborhood association, charity, or union. The term "organization" may be used to describe a person, a group, a business, as well as the process of creating or developing anything. A firm, institution, or group that consists of one or more individuals and has a specific goal is known as an organization (Commonwealth English; see spelling variations). A group of two or more people who pool their resources in support of a single aim or purpose is called an organization.

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how can you get back to your track/shedule once you break your consistently?​

Answers

Answer:

To get back into the habit of something takes a little bit. First you must start to remember to do that thing at the correct time, so I reccomend setting an alarm or timer for it. Once you remember it, make sure not to break the habit unless absolutely necessary. If you break it again and need to get back to it, repeat the above steps.

I hope this helps.

Answer:here are seven strategies that you can use to get back on track and bounce back right now…

Explanation:

1. Schedule your habits into your life.

2. Stick to your schedule, even in small ways.

3. Have someone who expects something of you.

4. Focus on what you can work with.

5. Just because it’s not optimal, doesn’t mean it’s not beneficial.

6. Design your environment for success.

7. Care.

George tallies up the transactions in his check register and comes up with a total balance of $221.57, but his bank statement says that his balance is $203.73. Which of the following are still outstanding?
I. A $20.25 check to the florist
II. A $14.29 check to the dry cleaners
III. A $38.09 check deposit
IV. A $19.05 money order deposit
a.I and III
b.I and IV
c.II and III
d.II and IV

Answers

The correct response is a. I and III. George totals up his cheque book transactions and finds a balance of $221.57, yet his bank account indicates a balance of $203.73. Still outstanding are I and III.

A transaction is a fulfilled contract between a buyer and a seller to exchange goods, services, or financial assets in exchange for money. The expression is also commonly used in corporate accounting. Typically, a business will do four different types of financial transactions. The four basic types of financial transactions that have an impact on a company are sales, purchases, receipts, and payments. Any money movement into or out of your bank account is referred to as a bank transaction. Bank transactions come in many different forms, such as cash withdrawals or deposits, cheques, internet payments, debit card charges, wire transfers, and loan payments. The Basic Transaction is the agreement for goods and services that underlies the current framework contract and is developed, reached, and/or processed.

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For a firm paying 5% for new debt, the higher the firm's tax rate
A. the higher the after-tax cost of debt.
B. the lower the after-tax cost of debt.
C. after-tax cost is unchanged.
D. Not enough information to judge.

Answers

For a firm paying 5% for new debt, the higher the firm's tax rate the lower the after-tax cost of debt. Thus, option 'B' is the correct option.

What do you mean by tax rate?

The tax rate in a tax system is the proportion at which a company or individual is taxed. Statutory, average, marginal, and effective tax rates are just a few of the ways that can be displayed. These rates can also be displayed using the inclusive and exclusive definitions of a tax base.

Simply dividing the income tax expenditure by the profits (or money generated) before taxes yields the effective tax rate. On an income statement, tax cost is often the last line item before the bottom line or net income.

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Machine X has an initial cost of $14,000. It is expected to last 10 years, to cost $255 per year to maintain and to have a salvage value of $6,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 7% interest is approximately __

Answers

The total amount of labor and resources needed to make one unit of any product is what you call your variable costs.

What does "cost" mean?

The value of money that is spent on producing an item or rendering a service and is now unavailable for use in business, research, retail, or accounting is known as the cost. In the case of an acquisition cost, the money spent on the acquisition is considered the cost.

What are company costs?

Definition: Cost in financial management refers to the money that a firm has spent to provide a good or service. Cost in a business entails the amount of cash wasted on the creation or manufacturing of

Initial cost of Machine X = $14,000

Annual maintenance cost = $225

Salvage value = $6000

Interest rate = 7%

Useful life = 10 years

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The equivalent uniform annual cost of the machine at 7% interest is approximately $2,928.

How do you determine the equivalent uniform annual cost?

The equivalent uniform annual cost (EUAC) of the machine can be calculated using the formula:

EUAC = (Initial cost - Salvage value + Total annual costs) / (1 - (1 / (1 + Interest rate)^Useful life)) where

Initial cost = $14,000

Salvage value = $6,000

Total annual costs = $255 per year for 10 years = $2,550

Interest rate = 7% (expressed as 0.07)

Useful life = 10 years

Plugging in the values, we get:

EUAC = ($14,000 - $6,000 + $2,550) / (1 - (1 / (1 + 0.07)^10))

EUAC = ($8,550) / (1 - 0.3429)

EUAC = $8,550 / 0.6571

EUAC ≈ $13,032.

Therefore, the equivalent uniform annual cost of the machine at 7% interest is approximately $13,032.

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As finance emerged as a new field, much emphasis was placed on mergers and acquisitions. True or False True False

Answers

Answer:

true true true

Explanation:

true true true

Who has the power in a command economy?

Answers

In a command economy, often referred to as a planned frugality, the central government organizes, plans, and manages all profitable conditioning to maximize societal well-being.

The central authority in a command economy determines the location of the product of goods and their distribution and prices. Command husbandry proponents contend that public control, not a private enterprise, can guarantee an equitable distribution of goods and services.

For the benefit of society, the government formulates lucrative viewpoints. The government controls all coffers in a pure command economy, allowing it to drive them to manufacture goods that are fashionable for society rather than those that may be in the best interests of certain individuals.

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A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency

Answers

C) The property can no longer be listed on the Multiple Listing Service (MLS) because the seller withdraws their consent to dual agency.

In MD, is dual agency permitted?

The Maryland Real Estate Commission's Consent for Dual Agency form must be signed by both parties before dual agency can take place.

How Does Dual Agency Work?

When a real estate agent acts on behalf of both the seller and the buyer of a home, this is known as dual agency. Due to the potential for a conflict of interest that can arise when an agent negotiates on behalf of both parties, separate agents representing each party in the majority of real estate transactions are much more common.

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Full Question = A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency...?

A. The seller must retain a new agent

B. The seller must retain a new broker

C. The property can no longer be listed on the MLS

D. The property will not be sold

Which programs or projects are most likely funded by taxes paid by the citizens of the United States

Answers

To prevent domestic industries that are new or emerging from being absorbed into or exploited by more developed foreign businesses, the U.S. gov imposes taxes or import tariffs on goods from other nations.

Test your knowledge of the two programs that payroll taxes support.

Payroll taxes are levied against earned income. In accordance with the Federal Contributions Act, this deductible from your income supports both the Medicare and Social Security programs systems (FICA)

Quiz about how the government uses taxes to pay for programs.

The state gets taxes to fund the services and goods it offers, such as roads, schools, police protection, libraries, parks, and law enforcement. The largest source of funding for the federal government is the individual income tax.

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An influential stakeholder has submitted a request for completing the project earlier than planned. What are the two parameters of the scope triangle that are most likely to be affected by this time change?

Answers

Scope, cost, and time are the three components of the project management triangle, which together determine the project's quality.

What stage of project management does the selection of the project manager and creation of the project charter occur?

The project's goals, scope, and restrictions are typically determined during the beginning phase by a project sponsor working with a project manager. The project charter is then created.

Which one of the following points should you take into account when choosing providers for your business?

Cost, capability, communication, and character are the four primary criteria that businesses use to choose their contractors. Every business transaction involves cost, but selecting a vendor involves far more considerations than simply accepting the lowest price.

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If a consumer goes to the store and purchases a DVD player, the shopper is buying both a _____. A. durable and intermediate good B. durable and final good C. nondurable and intermediate good D. nondurable and final good

Answers

When a customer goes to the store and buys a DVD player, the customer is also purchasing a durable and final good.

Which of the following items would be considered to be consumer durable goods?

Durable things typically cost more money. Both cars and furniture have a lengthy history. These are durable items since they last a long time and buyers don't frequently buy them.

What are a few illustrations of both durable and nondurable goods?

Consumer goods that are utilized regularly throughout time and have a life cycle of more than three years are considered durable. Durable products include things like refrigerators and bicycles. Packaged food and drinks, laundry detergent, and other nondurable commodities are typically used only once and consumed in less than three years.

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The area found __________ the market price and _____________ the demand curve is best known as consumer surplus.

Answers

A horizontal line is drawn between it y-axis and the demand curve to represent the area between the down demand curve and the market price of such commodity as the region of consumer surplus.

Is the selling price the market price?

Is the retail price equal to the market price? Simply put, the response is no. The selling price represents the price at which your house is actually purchased. It's crucial to realize that you won't likely sell your business quickly or easily if your market estimate is off.

Is a value a market price?

Market capitalization is frequently associated with to market value, which is price an asset commands on the market. Because variables depend on a variety of variables, including the physical working environment, the overall state of the economy, and the dynamics of supply and demand, valuation are dynamic in nature.

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What are the 5 components of environment?

Answers

The 5 components are Atmosphere, Hydrosphere Lithosphere  Biosphere and Anthroposphere

1. Atmosphere: The atmosphere is the layer of gases that surrounds the Earth, composed of nitrogen, oxygen, and other gases that help to regulate the temperature of the planet.

2. Hydrosphere: The hydrosphere is the layer of water that covers the Earth, including the Earth’s oceans, lakes, rivers, and groundwater.

3. Lithosphere: The lithosphere is the solid outer layer of the Earth, composed of rocks and soil.

4. Biosphere: The biosphere is the layer of living organisms that inhabit the Earth, including plants, animals, fungi, and bacteria.

5. Anthroposphere: The anthroposphere is the layer of human-made structures and activities that have an impact on the environment, such as cities, buildings, transportation systems, and industrial processes.

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Gemma wants to promote her online handbag business to a wide audience. But she's busy creating handbags for her clients, and has little time to manage the specifics of an advertising campaign. How can Smart Shopping campaigns help her achieve this

Answers

Smart shopping campaigns help her achieve this by showing ads to multiple audiences and networks.

Smart Shopping campaigns combine standard shopping and display remarketing campaigns to automatically promote Gemma's handbag business across all networks and a wide audience. Ads are shown to multiple audiences and networks.

Skill shop Shopping Ads Certification

Reach more customers with Shopping campaigns

Simplify campaign management with Smart Shopping campaigns

Smart Shopping campaigns make it easier to manage and reduce the time it takes to advertise your business by automatically uploading product details from the manufacturer's website.

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if r represents the reserve ratio for all banks in the economy, then the money multiplier is
a. (1+R) /R
b. 1/(1-R)
c. 1/(1+R)
d. 1/R

Answers

The money multiplier is calculated as follows: 1/R, where R is the reserve ratio of all banks in the economy.(option d)

What does "reserve ratio" mean?

The minimum ratio necessary by law for the commercial banks of the economy to hold the deposit with themselves is denoted by the symbol r, which stands for required reserve ratio or cash reserve ratio. This same holds true for the RBI, which serves as India's central bank. The amount of reservable liabilities that commercial banks must keep onto rather than lend out or invest is known as the reserve ratio.

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Which of the following is the most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization?
shareholders
stockholders
strategists
stakeholders

Answers

The most inclusive term for the individuals, groups, and organizations that have a claim in the success of an organization is a stakeholder. Option D is correct.

A party with an interest in a company and the capacity to influence or be impacted by it is referred to as a stakeholder. A typical corporation's investors, employees, clients, and suppliers make up its main stakeholders.

Stakeholders are any individuals or groups who have an interest in how successfully a business works. Building strong and balanced connections with stakeholders is crucial for organizations since doing so will influence how authentically they are able to address their needs.

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The relationship among the board of directors, top management, and (5 shareholders is referred to as A) corporate synergy. B) corporate management. C) corporate governance. D) corporate strategy. E) corporate responsibility.

Answers

Corporate governance is the arrangement of the board of directors, senior management, and five shareholders.

What does the term Shareholder mean?

A shareholder is a person who has shares in a corporation. They may also be called stockholders. Depending on how many shares they possess, shareholders are eligible to receive a portion of the company's profits. They are also permitted to receive dividends and to cast votes on some issues. Shareholders play a crucial part in a company's success since their financial commitment enables the business to expand and advance.

Why is corporate governance important?

A company's guiding principles, procedures, and policies are known as its corporate governance. Corporate governance requires weighing the interests of a company's many stakeholders, including shareholders, management, clients, vendors, financiers, the government, and the community. Corporate governance procedures make ensuring that a company's operations are in line with its stated aims and objectives as well as with any relevant legal requirements.

Therefore, choice C, corporate governance, is the proper response.

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a ____ operation searches data in a table and retrieves records based on certain criteria.

Answers

In a relational database model, a select operation searches data in a table and retrieves records based on specific criteria. The correct option is (d).

What are database used for?

Businesses utilize the information contained in database help make smart business choices.

Observe your consumers. Information on people, such that of clients or users, is frequently stored in databases. Social media networks, for instance, employ warehouses to keep user data including names, email addresses, and usage patterns. The information is put to use to optimize the user experience and propose content to consumers.Protected personal health data. Datasets are used by healthcare practitioners to safely preserve patient information that will help them deliver better treatment.

CQ

In a relational database model, a(n)  ____ operation searches data in a table and retrieves records based on specific criteria.

(a) join (b) relation (c) find (d) select

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Papyrus Inc. provided the following information for its manufacturing division: Revenues $650,000 Operating expenses $400,000 Service department charges $ 95,000 Invested assets $600,000 Assume that Papyrus Inc. has established 20% as the minimum acceptable return on divisional assets. Determine the residual income for the manufacturing division.

Answers

$35000 is the residual income for the manufacturing division.

Residual Income= Net Income-(Invested Assests*minimum R Return)

                          =  (650000-400000-95000)-(600000*20)

                          =  $155000-$120000

Residual Income= $35000

What does the term "residual income" mean?

The money you have left over after paying your regular expenses like your mortgage, credit card bills, utilities, groceries, and auto payments is referred to as residual income. This additional cash can be used for investments, debt repayment, savings, or even a vacation fund.

How is residual income calculated?

Net income less a deduction for the cost of equity capital yields residual income. Equity capital multiplied by the statutory rate of return on equity yields the deduction, known as the equity charge (the cost of equity capital in percent).

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A man divided $9,000 among his wife, son, and daughter. The wife received twice as much as the daughter, and the son received $1,000 more than the daughter. How much did each receive

Answers

The wife received $4000, the daughter received $2000 and the son received $3000

A man gave his wife, son, and daughter a total of $9,000.

Now that we know, we can see that the son received $1,000 more than the daughter, and the wife received twice as much as the daughter.

We might therefore presume that,

The amount wife received = x

The amount daughter received = x / 2

The amount son received = 1000 + (x / 2)

The equation which can be formulated from the above situation is:

x + (x / 2) +  (x / 2) + 1000 = 9000

2x + 1000 = 9000

2x = 9000 - 1000

2x = 8000

∴ x = 4000

On solving the equation now we know that:

Wife = x = $4000

Daughter = x / 2 = 4000 / 2 = $2000

Son = 1000 + (x / 2) = 1000 + 2000 = $3000

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2. Suppose the CPI for 1980 was 82.3 and for 1981 was 90.9. Based on this information, we can calculate that the inflation rate in 1981 was _____________. *

Answers

This data allows us to determine that the rate of inflation in 1981 was 10.4%.

What exactly does inflation mean?

The pace of price growth over a specific time period is referred to as inflation. Inflation is frequently measured broadly, such as the general increase in costs or perhaps the rise in cost of residing in a particular country.

What is the current rate of inflation?

As according U.S. Labor Board data released on December 13, the annual rate of inflation again for United States decreased from 7.7% to 7.1% for the year that ended in November 2022. On January 12, 2023, around 8:30 a.m. ET, the next inflation report is slated for publication.

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An account paying 4.6% interest compounded quarterly has a balance of $506,732.32. Determine the amount that can be withdrawn quarterly from the account for 20 years, assuming ordinary annuity. a. $9,722.36 b. $6,334.15 c. $23,965.92 d. $7,366.99 Please select the best answer from the choices provided A B C D

Answers

The amount $7366.99 can be withdrawn quarterly from the account for 20 years, assuming an ordinary annuity with 4.6% interest compounded quarterly. Hence, option (d) is the correct option.

Give a brief account on the annuity.

A series of recurring payments made in the investment industry is known as an annuity. Annuities include regular pension payments, frequent insurance payments, regular mortgage payments, and regular savings account contributions. Annuities can be divided into groups based on the regularity of their payment dates. The deposits (payments) may be made on a weekly, monthly, quarterly, annual, or any other regular basis. 'Annuity functions' are mathematical operations used to calculate annuities.

To determine the amount that can be withdrawn from the account on a quarterly basis, we can use the formula for calculating the present value of an annuity PV = PMT/ (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

Here PV = present value of the annuity

PMT = periodic payment or withdrawal amount

r = periodic interest rate

n = number of payments

Given that the interest rate is 4.6% per year and it's compounded quarterly, the periodic interest rate would be:

r = (0.046/4)

= 0.00115

Given that the account balance is $506,732.32 and the number of payments is

20 × 4 = 80

Then PV = PMT/ (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

PMT = PV × (r×(1+r)ⁿ) / (1-(1+r)⁻ⁿ)

= $506,732.32 × (0.00115×(1+0.00115)⁸⁰) / (1-(1+0.00115)⁻⁸⁰)

So the amount that can be withdrawn quarterly from the account for 20 years assuming the ordinary annuity is $7366.99

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A state law that conflicts with the U.S. Constitution will be deemed unconstitutional under the Supremacy Clause
True False

Answers

The Supremacy Clause declares unlawful state laws that contradict the US Constitution. True

The United States of America, also referred to as the US or America, is a nation that is largely located in the continent of America. There are 326 Indian Reservations, 5 Significant Unincorporated Territories, 9 Minor Outlying Islands, and 50 States in the union. It is the third-largest country on earth in terms of total area and land. Its marine borders are shared by a number of countries, including Russia, Cuba, and the Bahamas. It is the most populated nation in the Americas and the third most populous nation worldwide with a population of more than 333 million. Washington, D.C., is the country's capital city and financial hub.

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1.Limitations of the _______ budgeting method include not allowing firms to exploit the unique opportunities or problems they confront in a market. If all competitors use this method to set communication budgets, their market shares will stay approximately the same over time.

Answers

Companies are unable to take advantage of the unique opportunities or challenges they face in a market because of the competitive parity budgeting method's limitations.

In VRIO, what is competitive parity?

If a lot of people in an industry have access to a certain valuable resource, they can all use it in the same way. Then, using that resource, none of the players gain a competitive advantage. Competitive parity or competitive equality refers to this circumstance.

In business, what does parity mean?

The condition in which two things are equivalent to one another is referred to as parity. As a result, it can be used to refer to two securities of equal value, such as the value of a stock and a convertible bond (if the bondholder chooses to convert the bond into common stock).

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