Suppose you have $1,000 today and the risk-free rate of interest (rf) is 3.5%. The equivalent value in one year is closest to:

Answers

Answer 1

Answer:

$1,035

Explanation:

One dollar today is worth more than one dollar tomorrow. This is one of the basic pillars of finance, if not the most important one. It refers to time value of money. It is easier to understand if we work the other way around. How much would you be willing to pay if you were to receive $1,000 in one year if the risk free interest rate was 3.5%? The present value = $1,000 / 1.035 = $966.18. Inversely, today I have $1,000, so how much should it be worth in one year = $1,000 x 1.035 = $1,035.


Related Questions

Nor Corporation borrowed money using a discounted note at 94 with a stated 6% interest rate and a face amount of $400,000. What is the effective rate of interest on the debt

Answers

Answer:

the effective rate of interest on the debt is 6.38%

Explanation:

The computation of the effective rate of interest on the debt is shown below:

Effective rate of interest is

= ($400,000 × 6%) ÷ ($400,000 × 0.94)

= $24,000 ÷ $37,600

= 6.38%

Hence, the effective rate of interest on the debt is 6.38%

It could be determined by applying the above formula so that the correct rate could come

Which accounting assumption or principle is being violated if a company reports its corporate headquarter building at its fair value on the balance sheet

Answers

Answer:

Historical cost

Explanation:

The historical cost principle is an accounting principle that states that an asset, liability or equity should be recorded at the cost it took to purchase the asset, liability or equity. The asset should be recorded at historical cost  no matter the change in the value of the asset, liability or equity.

For example, if a car was purchased by a company at the cost of $50,000 in December 2020. If by January 2021, the asset now costs $55,000. The asset should still be recorded in the balance sheet of the company at $50,000

The asset, liability or equity can be recorded at fair value in the case of acquisition of the company or sale of the asset, liability or equity

Sunland Company purchased a heavy-duty truck on July 1, 2017, for $29,400. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $5,880. The company uses the straight-line method. It was traded on August 1, 2021, for a similar truck costing $41,160; $15,680 was allowed as trade-in value (also fair value) on the old truck and $25,480 was paid in cash. A comparison of expected cash flows for the trucks indicates the exchange lacks commercial substance. What is the entry to record the trade-in

Answers

Answer:

Dr Trucks (New) $41,160

Dr Accumulated Depreciation $9,604

Dr Loss on Disposal $4,116

Cr Cash $25,480

Cr Trucks (Old)$29,400

Explanation:

Preparation of the Journal entry to record the trade-in

Dr Trucks (New) $41,160

Dr Accumulated Depreciation $9,604

($29,400-$5,880*49 months/120 months)

Dr Loss on Disposal $4,116

($29,400-$9,604-$15,680)

Cr Cash $25,480

Cr Trucks (Old)$29,400

If a firm is following the cost leadership strategy, and overhead accounts are complex, then the: Firm should attempt to collect only material and labor costs. Firm should use a process costing system. Firm can use either a project or job costing system. Traditional volume-based job costing will not usually provide the needed cost accuracy. Only recourse is to install a hybrid costing system.

Answers

Answer:

Traditional volume-based job costing will not usually provide the needed cost accuracy.

Explanation:

Cost leadership strategy basically means that the company will try to sell its products and services at the lowest possible price. This should increase total sales volume, but in order to be profitable, the production and operational costs must be very low. Actually, the company needs to continuously find ways to keep their costs under control or decrease them if possible.

1.Economics is the study of ____________________ and _________________________.2.What is opportunity cost

Answers

Answer: See explanation

Explanation:

Economics is the study of human behavior and also how resources are allocated in the society. Economics studies the reason for the behavior in the individuals, firms or government when certain situations happen in the economy.

Opportunity cost is refered to as n alternative cost that's, the cos if what we forgo when we make an alternative decision. For example, if I purchase a book for $20, the opportunity cost is something else that I could have used the $20 for.

What is the difference between compounding (the determination of future value) and discounting (the determination of present value)

Answers

Answer:

Compounding is the addition of the Interests to the Present Value to arrive at the Future Value. While discounting is the deduction of interest charges from thee Future Value to arrive at the Present Value.

Explanation:

Compounding is the addition of the Interests to the Present Value to arrive at the Future Value. While discounting is the deduction of interest charges from thee Future Value to arrive at the Present Value.

g A debit is used to record which of the... A debit is used to record which of the following: Multiple Choice A decrease in an asset account. A decrease in an expense account. An increase in a revenue account. An increase in the common stock account. An increase in the dividends accoun

Answers

Answer:

An increase in dividends account

Explanation:

In accounting, a debit is used to record an increase in asset, an increase in expense and a decrease in liability.

With regards to the above, the correct option is an increase in dividends account because dividend is a current asset hence a debit records an increase in assets. Dividend is the returns paid to an investor or shareholder who invest or buys shares in a company. It is the reward paid to an investor for investing in a company.

Due to a pre-existing contract, Recycle America Inc. has the opportunity to acquire 10,000 pounds of scrap aluminum and 2,500 pounds of scrap lead for $10,750. If the current market price for scrap aluminum is $0.83 per pound and the current market price for lead is $1.06 per pound, then the added benefit (cost) to you if you acquire this metal is:

Answers

Answer:

The added benefit is $200.

Explanation:

Amount on the pre-existing contract = $10,750

Total current market price for scrap aluminum = Pounds of scrap aluminum to purchase *  Current market price of scrap aluminum per pound = 10,000 * $0.83 = $8,300

Total current market price for scrap lead = Pounds of lead aluminum to purchase *  Current market price of scrap lead per pound = 2,500 * $1.06 = $2,650

Added benefit (cost) = Total current market price for scrap aluminum + Total current market price for scrap lead - Amount on the pre-existing contract = $8,300 + $2,650 - $10,750 = $200

Since the amount is positive which indicates that the addition of total current market price for scrap aluminum and total current market price for scrap lead is greater the amount on the pre-existing contract, the added benefit is therefore $200.

If the current market rate of interest is 8%, then the present value of this timeline is closest to:

Answers

Answer:

$857

Explanation:

Calculation for the present value

Using this formula

Present value = FV / (1+ r)^ n

Let plug in the formula

Present value= 1,000 / (1+.08)^2

Present value= 1,000 / (1.08)^2

Present value= 857.34

Present value=$857 (Approximately)

Therefore the Present value is $857

A student attending a class in a public high school is a...
1. Worker
2 Consumer
3 Citizen

Answers

Answer:

3

Explanation:

If I am wrong I am sorry.

Answer:

3 I guess

Explanation:

hope its t

right

On February 1, 2017, Pat Weaver Inc. (PWI) issued 9%, $1,500,000 bonds for $1,800,000. PWI retired all of these bonds on January 1, 2018, at 105. Unamortized bond premium on that date was $157,500. How much gain or loss should be recognized on this bond retirement

Answers

Answer:

the gain on retirement bond is $100,000

Explanation:

The computation of the gain or loss recognized on the bond retirement is shown below;

= Book value - paid at redemption

= ($1,500,000 + $157,500) - ($1,500,000 × 105%)

= ($1,657,500) - ($1,575,000)

= $100,000

hence, the gain on retirement bond is $100,000

The same is to be considered and relevant too

Personal Consumption Expenditures$4,500 Consumption of Fixed Capital150 Gross Private Domestic Investment800 Government Purchases950 Exports65 Imports85 Refer to the accompanying data about a hypothetical economy (in billions of dollars). GDP in this economy is Multiple g

Answers

Answer:

The GDP in this economy is $6,230 billion.

Explanation:

The GDP can be calculated using the following formula:

Y = C + I + G + (X - M) ....................................... (1)

Where:

Y = GDP of the economy

C = Personal Consumption Expenditures = $4,500

I = Gross Private Domestic Investment = $800

G = Government Purchases = $950

X = Exports = $65

M = Imports = $85

Substituting the values into equation (1), we have:

Y = $4,500 + $800 + $950 + ($65 - $85)

Y = $6,250 - $20

Y = $6,230

Since the figures are in billions of dollars, the GDP in this economy is therefore $6,230 billion.

- Interest: A sum fetched a total simple interest of $ 4016.25 at the rate of 9 %.p.a. in 5 years. What is the sum?

Answers

Answer:

$8,925

Explanation:

Calculation of simple Interest is by the formula

I= P x r x t

Where I = Interest

p= principal

r= interest rate

t= time in years

In this case

I=$4016.25

p=???

r= 9% or 0.09

t=5 year

Therefore;

$4016.25= P x 0.09 x 5

$4016.25 = P0.45

P=$4016.25/0.45

P=$8,925

The principal is $8,925

Ethical analysis precedes law when it is the basis for creation of a law.
Select one:
O True
© False​

Answers

Answer:

True

hope this helps you

Advise the management of ABC Ltd.
about the various groups that can
be created in an organisation
= Effective group, Formal group, Informal group ​

Answers

Explanation:

Effective group, Formal group, Informal group is the correct answer

The management of ABC Ltd. can create various groups in an organization like Effective group, Formal group, Informal group .

What is an organization?

An organization refers to a collection of people, who are involved and work together in pursuing or achieving a defined objectives. It is a type of social system which comprises human relationships in a forma manner.

In organization there is division of work among employees and the tasks are given so that the ultimate goal of the company or an organization can be achieved.

An organization has a proper hierarchy of people and follow a proper formal structure to achieve the goals of the organization.

The management of ABC Ltd. can create various groups in an organization like Effective group, Formal group, Informal group .

Learn more about organization here:

https://brainly.com/question/14751622

#SPJ6

Hyde's Headphones sells deluxe headphones for $75 each. Unit variable expenses total $45. The breakeven sales in units is 2,400 and budgeted sales in units is 4,200. What is the margin of safety in dollars

Answers

Answer:

$135,000

Explanation:

Calculation for What is the margin of safety in dollars

First step

2,400 x $75

= $180,000

4,200 x $75

= $315,000

The margin of safety $315,000 - $180,000

The margin of safety = $135,000

Therefore the margin of safety in dollars is $135,000

Elijah currently has six strollers that he purchased for $235 each and four cribs that he purchased for $450 each on the floor of his baby supply store. He also has three strollers and two cribs in his storeroom. Using the weighted average cost method, what is the cost of each item being sold at Elijah's baby supply store?

a. $364.00
b. $342.50
c. $32100
d. $301.15

Answers

Answer:

c. $321.00

Explanation:

Particulars      Unit price   Units     Total(Unit price*Unit)

Six strollers $235             6                $1,410

Four cribs $450             4                $1,800

Total                                     10               $3,210

Weighted average price = Total cost/Total unit

Weighted average price= $3210/10

Weighted average price = $321

________ is the process of identifying suitable candidates and encouraging them to apply for job openings in the organization.

Answers

Answer:

Recruitment

Explanation:

Companies or organizations goes through the process of looking for candidates that best suites the vacant position in their organization ; hence encouraging such candidates to apply.

When there are openings in an organization, usually, lots of people would like to fill in such opening , but as an organization with a focus for hiring best hands, it is normal for them to ask for candidates that are qualified for such vacant position. The process of identifying suitable candidates and encouraging them to apply for a vacant post or job openings in an organization is called recruitment.

A large retail store is experiencing huge problems with high turnover among its sales associates. Interviews with employees who have quit their jobs has revealed that low pay, a lack of opportunities for advancement, and high stress were the main reasons why sales associates were quitting. The store manager decided that she wanted to hire a consultant to help the company to reduce employee turnover. This store manager needs to hire a consultant who specializes in _______.

Answers

Answer:

Human resource management

Explanation:

Human resource management refer to managing the human resource. In this there are various functions like recruitment & selection, training & development etc

Since in the question it is mentioned that interview was conducted with the employees who quit their jobs due to less pay, lacking of opportunities so in order to decrease the turnover of the employees she would like to hire the consultant so the consultant should be specialized in human resource management

Therefore the same is relevant

Benjamin and Amelia Hopkins have been married since 2016. Benjamin is a U.S. citizen with a valid Social Security number. Amelia is a resident alien with an Individual Taxpayer Identification Number (ITIN). They elect to file Married Filing Jointly. Benjamin worked in 2020 and earned wages of $25,000. Amelia worked part-time and earned wages of $15,000. They have two children: Harper, who is 9 years old, and Evelyn, who is 12 years old. Both children were supported by their parents all year. Harper is a U.S. citizen and has a valid Social Security number. Evelyn is a resident alien and has an ITIN. Benjamin, Amelia, Harper, and Evelyn lived together in the U.S. all year 7. Which credit(s) can the Hopkins claim on their 2020 tax return

Answers

Answer:

Benjamin and Amelia Hopkins

The Hopkins can claim on their 2020 tax return child tax credit of $2,000 for Harper only.

Explanation:

a) Data and Calculations:

Benjamin and Amelia Hopkins = Married and Filing Jointly

Benjamin = a U.S. citizen with a valid Social Security number

Amelia = a resident alien with an Individual Taxpayer Identification Number (ITIN)

Benjamin's 2020 earned wages = $25,000

Amelia's 2020 earned wages = $15,000

Total gross income = $40,000

Dependent children = Harper, 9 and Evelyn, 12

Harper = a U.S. citizen with a valid Social Security number (SSN)

Evelyn = a resident alien and has an ITIN

b) Benjamin and Amelia cannot claim the child tax credit for Evelyn since she does not have the SSN even though she has an ITIN. They can claim for Harper, who has an SSN.  Harper is a  qualifying child and eligible for the child tax credit (CTC) of $2,000 per child.

Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as

Answers

Answer:

a leftward shift of the demand curve for CDs.

Explanation:

Most economists use the aggregate demand and aggregate supply model primarily to analyze short-run fluctuations in the economy.

This simply means that, whatever makes the factors of production such as, land, labor, entrepreneurship, capital, or efficiency to either go up or down would certainly result in fluctuations in the economy of a particular country.

Aggregate supply (AS) refers to the total quantity of output (goods and services) that firms are willing to produce and sell at a given price in an economy at a particular period of time.

Aggregate demand (AD) can be defined as the total quantity of output (final goods and services) that is demanded by consumers at all possible price levels in an economy at a particular time.

On a standard Aggregate demand (AD)-Aggregate supply (AS) curve, the y axis denotes the Price (P) of goods and services while the x axis typically denotes the Output (Q) of final goods and services.

In the short-run, a rightward shift in the aggregate supply (AS) curve causes output to increase and result in a price fall (lower price) while a rightward shift in the aggregate demand (AD) curve also cause output to increase and rise in prices.

In this scenario, consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as a leftward shift of the demand curve for CDs.

11. Your bank pays 2.5% interest per year. You put $1000 in the bank today and $500 more in the bank in one year. How much will you have in the bank in 2 years?

Answers

Answer:

Total FV= $1,563.13

Explanation:

Giving the following information:

Interest rate= 2.5% = 0.025

Number of periods= 2 years

To calculate the future value (FV), we need to use the following formula on each deposit:

FV= PV*(1+i)^n

FV1= 1,000*(1.025^2)= 1,050.63

FV2= 500*(1.025^1)= 512.5

Total FV= $1,563.13

What will be the level of interest rate, i, if investment at 0 interest is $16 million and the coefficient of invest, I, equals 0.4.

Answers

Answer:

The right solution is "16 +0.4r". A further explanation is given below.

Explanation:

The given values are:

Autonomous investment,

I = 16 million

Coefficient of investment,

g = 0.4

As we know,

Economy's investment function will be:

⇒ [tex]I(r) = I + gr[/tex]

On substituting the given values, we get

⇒        [tex]=16+0.4r[/tex]

Demand determines price entirely when A) demand is downward sloping. B) demand is perfectly inelastic.

Answers

Answer:

C) supply is perfectly inelastic.

Explanation:

In the case when the supply is perfectly non-elastic so the demand would measures the price entirely that means it calculated the overall price at the time when there is a perfectly non-elastic supply

So according to the given scenario the option c is correct

And, the rest of the options are incorrect

So the same is relevant

Cycle time is computed as A. daily operating time divided by the product of desired output and the sum of job times B. the product of desired output and the sum of job times divided by daily operating time C. daily production time available divided by the desired number of outputs D. desired output divided by the daily operating time

Answers

Answer:

C. daily production time available divided by the desired number of outputs

Explanation:

For example, a factory produces 1,000 units per day, and the total amount of production time available in all the stations is 2,000 minutes. The total amount of available minutes is measured by summing the 5 stages of the production process.

The cycle time = 2,000 available minutes / 1,000 units = 2 minutes per unit

A $1,000 par value 12-year bond with a 9 percent coupon rate recently sold for $980. The yield to maturity is

Answers

Answer:

0.92%

Explanation:

To find the answer, we use the Yield to Maturity Formula (YTM):

YTM = [C + (F-P)/n] / [(F+P)/2]

Where C is coupon, F is face value or par value, n is years to maturity, and P is price.

now we plug the amounts into the formula

YTM = [90 + (1,000-980)/12] / [(1,000+980)/2]

YTM = 0.0092

YTM = 0.92%

So the YTM of this bond is only 0.92%, which is a very low YTM, typical of very safe securities like government bonds.

Julio Company purchased a $200,000 machine that has a four-year life and no salvage value. The company uses straight-line depreciation on all asset acquisitions and is subject to a 30% tax rate. The proper cash flow to show in a discounted-cash-flow analysis as occurring at time 0 would be: $50,000. $(200,000). $(35,000). $(140,000). $15,000.

Answers

Answer:

$(200,000)

Explanation:

The cash flow to be shown in year is the initial investment outlay incurred prior to the commencement of the project since a new investment opportunity like this is seen as a project from which future cash flows are expected.

The amount expended today to ensure is $200,000 which would be shown in the discounted-cash-flow analysis as negative $200,000 because it is an outflow rather than an inflow that would have assumed a positive sign

Think about a tradeoff associated with taking college classes and pursuing a degree. What kinds of things do you trade off to take classes and do homework

Answers

Answer:

time and money

Explanation:

The two main general tradeoffs that you're making are time and money. You are using your valuable time pursuing that degree as well as spending money on tuition and other expenses. This therefore, becomes an opportunity cost since you could have spent that time and money doing other things such as travelling to see the world, creating a business, investing, or even learning something else. Anything that you could think of would be an opportunity cost of deciding to use your time and money to pursue that degree.

What is traditionalist account? Give an example.​

Answers

Answer:

in folklore, a narrative containing information about actual persons and events. Originating from the tales of eyewitnesses, the traditional account departs from its original factual basis when retold and becomes subject to free poetic interpretation.

if GDP in government spending Remains the Same and alpetra is a closed economy what is the change in investment

Answers

Answer:

No change

Explanation:

The complete question is "The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption, and Government spending remains the same and Alpetra is a closed economy, what is the change in investment?"

The closed economy equilibrium is at: Y = C + I + G. Where Y = Real GDP, C = Consumption, I = Investment and G = Government spending.

The Y, C, G are constant so the investment is not changed. I = Y - C - G. So, this is the same before-tax and after-tax change.

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