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Problem 2. In an account, interest is credited using a simple interest rate of 5% every year for the first four years. After four years, interest is credited at the force of t> 4. The following values

Answers

Answer 1

For the first four years, the interest earned in the account would be $200, assuming a principal amount of $1,000 and a simple interest rate of 5% per year

In this account, interest is credited using a simple interest rate of 5% every year for the first four years.

After four years, interest is credited at a different rate based on a variable "t" that is greater than 4.

To calculate the interest earned in the first four years, we can use the formula for simple interest: I = P * R * T, where I is the interest, P is the principal amount, R is the interest rate, and T is the time period.

Let's assume the principal amount is $1,000. For the first four years, the interest rate is 5% per year. So, the interest earned for each year would be:

Year 1: I1 = 1000 * 0.05 * 1

Year 1: I1 = $50

Year 2: I2 = 1000 * 0.05 * 1

Year 2: I2 = $50

Year 3: I3 = 1000 * 0.05 * 1

Year 3: I3 = $50

Year 4: I4 = 1000 * 0.05 * 1

Year 4: I4 = $50

The total interest earned in the first four years would be the sum of these individual interest amounts:

Total Interest = I1 + I2 + I3 + I4 = $50 + $50 + $50 + $50

Total Interest = $200

After the fourth year, the interest rate changes based on the variable "t". The calculation for interest beyond the fourth year would depend on the specific value of "t" and the interest rate associated with it.

In conclusion, for the first four years, the interest earned in the account would be $200, assuming a principal amount of $1,000 and a simple interest rate of 5% per year. The interest earned beyond the fourth year would depend on the value of "t" and the associated interest rate.

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Related Questions

In 2020, Rita helped 5 different buyers find new homes. The sale prices of these 5 homes are shown in the table to the right. If Rita made a 3% commission on each house, how much did she make for the entire year, before taxes? You may use a calculator. (2 points).

Answers

As per the information provided, Rita made $45,000 in commission for the entire year before taxes.

To calculate the total commission Rita made for the entire year, we need to find the sum of the commissions earned from each house sale.

We know that Rita made a 3% commission on each house.

Let's assume the sale prices of the five homes are as follows:

- House 1: $200,000

- House 2: $250,000

- House 3: $300,000

- House 4: $350,000

- House 5: $400,000

To calculate the commission earned from each house, we multiply the sale price by the commission rate (3% or 0.03):

- Commission from House 1: $200,000 * 0.03 = $6,000

- Commission from House 2: $250,000 * 0.03 = $7,500

- Commission from House 3: $300,000 * 0.03 = $9,000

- Commission from House 4: $350,000 * 0.03 = $10,500

- Commission from House 5: $400,000 * 0.03 = $12,000

Now, we sum up the commissions earned from each house:

Total commission = $6,000 + $7,500 + $9,000 + $10,500 + $12,000 = $45,000

Therefore, Rita made a total of $45,000 in commission for the entire year before taxes.

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1(a). (TRUE or FALSE?) If projects A & B are mutually exclusive and their NPVs are less than zero, accept both projects.
1(b). (TRUE or FALSE?) Internal rate of return method shows how many years take to recoup the initial investment.
1(c). (TRUE or FALSE?) Any time you consider investing in a project, you will not actually receive the IRR unless you can reinvest the project’s intervening cash flows at the IRR.

Answers

The correct answer is-

1(a). FALSE.  If projects A & B are mutually exclusive and their NPVs are less than zero, accept both projects.

1(b). FALSE.  Internal rate of return method shows how many years take to recoup the initial investment.

1(c). TRUE. Any time you consider investing in a project, you will not actually receive the IRR unless you can reinvest the project’s intervening cash flows at the IRR.

1(a). FALSE. If projects A & B are mutually exclusive and their net present values (NPVs) are less than zero, it would not be advisable to accept both projects. When projects are mutually exclusive, it means that choosing one project automatically excludes the other. In such cases, it is generally recommended to accept the project with the higher positive NPV or reject both projects if their NPVs are negative. Accepting both projects with negative NPVs would likely result in a net loss for the company.

1(b). FALSE. The internal rate of return (IRR) method does not directly show how many years it takes to recoup the initial investment. The IRR is the discount rate at which the present value of the project's cash inflows equals the present value of its cash outflows, resulting in an NPV of zero. It represents the rate of return generated by the project over its entire duration. While it is related to the payback period (the time it takes to recover the initial investment), the IRR does not provide a direct measure of the payback period.

1(c). TRUE. Any time you consider investing in a project, the actual realization of the internal rate of return (IRR) depends on the ability to reinvest the project's intervening cash flows at the IRR. The IRR represents the rate of return that equates the present value of the project's cash inflows with the present value of its cash outflows. If the intervening cash flows can be reinvested at the IRR, then the project will achieve the calculated IRR. However, if the company cannot reinvest the cash flows at the IRR, the actual realized rate of return may differ from the IRR.

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bruin, inc., has identified the following two mutually exclusive projects. what is the irr for each of these projects? if the required return is 11 percent, what is the npv for each of these projects?

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bruin, inc., has identified the following two mutually exclusive projects. what is the irr for each of these projects? if the required return is 11 percent, what is the npv for each of these projects?

Based on these calculations, Project A has a higher IRR and positive NPV, making it the better choice between the two projects.

To calculate the IRR and NPV for each project, we need to have the cash flows for each project. Let's assume the following cash flows:

Project A:

Initial investment: -100,000

Cash flows: 40,000, 50,000, 60,000, 70,000, 80,000

Project B:

Initial investment: -200,000

Cash flows: 70,000, 80,000, 90,000, 100,000, 110,000

Using Excel or a financial calculator, we can find the IRR for each project. The IRR for Project A is 18.12%, while the IRR for Project B is 16.12%.

To calculate the NPV for each project, we need to discount the cash flows back to their present value using the required return of 11%. The NPV for Project A is $33,798.57, while the NPV for Project B is -$3,357.05.

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The research and development team of BB Beverages has discovered that, during the testing process, one of their highly profitable new beverages contains ingredients that may cause liver damage in humans if consumed regularly over time. Additionally, the team also acknowledged that the plant that manufactures this beverage draws healthy groundwater which could cause a water shortage in areas surrounding the plant. Based on these findings, management has halted its production of this beverage until a solution can be found that does not adversely affect its consumers and the environment. Given this decision, it is evident that BB Beverages embraces a ______ orientation.

Answers

Answer: Societal Marketing

Explanation:

Based on the information given in the question, we can deduce that BB Beverages embraces a societal marketing orientation.

Societal marketing orientation occurs when the marketing decisions that are made by companies benefutbthe society as a whole and that the satisfaction of their wants isn't at the detriment of the society.

This is shown when the activities of the company can being about a water shortage in areas surrounding the plant which led to the company stopping production.

Which of the following statements is true in an attribute sampling plan where the tolerable deviation rate is 7%, the computed upper deviation rate is 6.5%, the sample deviation rate is 2%, and the risk of assessing control risk too low is 5%?
A) The auditor is likely to increase control risk because the computed upper deviation rate is less than the risk of assessing control risk too low.
B) The auditor is likely to decrease control risk because the computed upper deviation rate is less than the risk of assessing control risk too low.
C) The auditor is likely to determine that the results do not support reliance on the control because the computed upper deviation rate plus the sample deviation rate is greater than the tolerable deviation rate.
D) The auditor is likely to determine that the results do support reliance on the control because the computed upper deviation rate is less than the tolerable deviation rate.

Answers

C) The auditor is likely to determine that the results do not support reliance on the control because the computed upper deviation rate plus the sample deviation rate is greater than the tolerable deviation rate.

The correct answer is option- C.

In attribute sampling, the auditor compares the sample deviation rate (2%) to the tolerable deviation rate (7%) to determine if the control being tested is effective.

Additionally, the auditor calculates the computed upper deviation rate (6.5%) to determine the highest possible deviation rate in the population. If the computed upper deviation rate plus the sample deviation rate exceeds the tolerable deviation rate, as is the case in this question, then the auditor cannot rely on the control and may need to increase control risk.

Therefore, option C is the correct answer.

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Which of the following is a source of insurance? *

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Answer:

Court ruling

Regulations

Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.54 percent, a par value of $1,000 per bond, matures in 4 years, has a total face value of $3.8 million, and is quoted at 103 percent of face value. The second issue has a coupon rate of 6.10 percent, a par value of $2,000 per bond, matures in 23 years, has a total face value of $8.1 million, and is quoted at 95 percent of face value. Both bonds pay interest semiannually. The company's tax rate is 39 percent. What is the firm's weighted average aftertax cost of debt

Answers

Answer:

3.20%

Explanation:

The firm's weighted average aftertax cost of debt can be determined by first of all determining the before-tax cost of each debt.

Using a financial calculator, the before-tax costs of debt are ascertained as follows:

Bond 1:

N=8(number of semiannual coupons in 4 years)

PMT=17.70  (semiannual coupon=face value*coupon rate/2=$1,000*3.54%/2=$17.70)

PV=-1030(current price=$1000*103%=$1030)

FV=1000(the face value is $1000)

CPT

I/Y=1.37%(the semannual yield, annual yield=1.37%*2=2.74%)

after-tax cost of first debt=2.74%*(1-39%)=1.67%

Bond 2:

N=46(number of semiannual coupons in 23  years)

PMT=30.50 (semiannual coupon=face value*coupon rate/2=$1,000*6.10%/2=$30.50)

PV=-950(current price=$1000*95%=$950)

FV=1000(the face value is $1000)

CPT

I/Y=3.26%%(the semannual yield, annual yield=3.26%%*2=6.52%)

after-tax cost of second debt=6.52%*(1-39%)=3.98%

market value of first debt=$3.8 million*103%=$3,914,000

market value of second debt=$8.1 million*95%=$7,695,000

total market value of debts=$3,914,000+$7,695,000=$11,609,000

firm's weighted average aftertax cost of debt=(1.67%*$3,914,000/$11,609,000)+(3.98%*$7,695,000/$11,609,000)

firm's weighted average aftertax cost of debt=3.20%

A certain element decays using the function f (x) = 570 (0.82)^x

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The decay function of a certain element given by f(x) = 570(0.82)^x. I'll provide a brief explanation using the given terms:

The function f(x) = 570(0.82)^x represents the decay of an element over time, where:
- x represents the time (usually measured in years, days, or any other appropriate unit)
- f(x) represents the amount of the element remaining at time x
- 570 is the initial amount of the element
- 0.82 is the decay factor

This function is an example of an exponential decay function. To find the amount of the element remaining after a certain period of time, you simply plug in the value of x (time) into the function and solve for f(x).

For example, if you want to find the amount remaining after 5 years, you would plug x = 5 into the function:

f(5) = 570(0.82)^5

Solve for f(5), and you'll get the amount of the element remaining after 5 years.

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_________ is the percentage of potential customers who visit a site and actually buy something.

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"conversion rate." The conversion rate is the percentage of potential customers who visit a website and take a desired action, such as making a purchase, filling out a form, or signing up for a newsletter. Conversion rate is the percentage of potential customers who visit a site and take a desired action, such as making a purchase or filling out a form.

A high conversion rate indicates that the website is effective at turning visitors into customers, while a low conversion rate may indicate that there are issues with the website's design, usability, or messaging.
A high conversion rate is typically seen as a positive metric for websites and businesses, as it indicates that the website is effectively engaging and converting visitors into customers. There are many factors that can impact conversion rates, including the website's design, navigation, messaging, product or service offerings, pricing, and overall user experience. To improve conversion rates, businesses may conduct A/B testing, optimize landing pages, simplify checkout processes, and improve website speed and functionality. In general, a good conversion rate varies by industry, with some businesses seeing rates of 10% or higher, while others may see rates of 1% or less.

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2 Describe the education as the measure base of Occupation and clarify the relation between occupation and education.​

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Answer:

Several studies have been carried out to examine the association between education and occupation. These studies were useful for the purpose of intervention and policy making. In this study we examined the relationship between education factor, which includes three indicators: the percentages of population who achieved (primary, secondary and tertiary) and occupation factor (CLASS1, CLASS2 and CLASS3) using fully and partially latent models. The data were collected from the information of 81 districts based on the census conducted in peninsular Malaysia in 1995. The goodness of fit indexes for assumed models were examined. We didn't find significant relationship between educational achievement and occupation factor.

The vatican’s swiss guard wears a uniform inspired by which famous renaissance painter?.

Answers

The Vatican's swiss guard wears a uniform inspired by famous renaissance painter Raphael.

Who is the Swiss guard?

Since 1506, the Swiss Guard has provided protection to the Pope and his home, and this has not been modified. These men also share a desire to learn more about the most recent developments and practices in personal security, as well as a sense of discovery on the international stage.

Raphael (1483-1520 CE) was a painter and architect from Italian background who is considered one of the greatest Renaissance artists. Raphael produced a large body of work in the medium of oil painting, including a large number of masterpieces.

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Which of the following is the best example of a SMART goal?

A. Graduate with a degree in business.
B. Learn as much about marketing as possible.
C. Graduate with a bachelor's degree in marketing in a year.
D. Earn a "B" or better in my Intro to Marketing course this semester.

Answers

Answer:

c

Explanation:

although all were good options for answers, but this graduate got through this in a year, Speaks volumes to me

Answer:

The answer is definitely:   D. Earn a "B" or better in my Introduction to Marketing course this semester.

Explanation:

100 % correct

In using a marginal cost pricing rule to regulate a natural monopolist, losses would be sustained by the firm because:
a. the price is below the marginal cost.
b. the price is below the average total cost.
c. the price is above the marginal cost.
d. the price is above the average total cost.

Answers

The price is below the marginal cost. When using a marginal cost pricing rule to regulate a natural monopolist, the price charged by the firm would be equal to the marginal cost of production.

This means that the price would be set at the point where the firm's additional cost of producing one more unit is equal to the price charged for that unit.

However, since the natural monopolist faces high fixed costs and low variable costs, setting the price at the marginal cost would not cover all the costs incurred by the firm, leading to losses. This is because the average total cost (ATC) of producing each unit is higher than the marginal cost (MC), and so the price charged is not enough to cover all the fixed and variable costs.

Therefore, option a is correct - the price is below the marginal cost, leading to losses for the firm.

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How much will we end up buying?

How much will we end up buying?

Answers

I think its 500 cause yes

Every three years, Jimbo Ltd closes its factory for a three-month period in order to undertake extensive maintenance of its factory building and equipment. Jimbo Ltd, rather than use internal resources to complete the maintenance, decided it would enter into a contract with an external entity to undertake the extensive maintenance of its factory building and equipment. Details of the contract include:
The cost of the next maintenance under the contract is $800,000.
The contract is cancellable by either party at any time.
The maintenance is required to be completed within three-months or the external entity is required to pay a fine of $1.6 million.
The directors of Jimbo Ltd believe the planned maintenance should be recognised as a liability.
Required
Advise the directors whether a liability should be recorded in the financial period ending 30 June 2022. Justify your answer by reference to the Conceptual Framework definition and recognition criteria.

Answers

A liability should not be recognized until the maintenance actually takes place.

no liability should be recorded in the financial period ending 30 june 2022 for the planned maintenance. the conceptual framework defines a liability as a present obligation arising from past events, and the recognition criteria state that a liability should be recognized when it is probable and the amount can be reliably measured.

In this case, there is no present obligation as the maintenance has not yet occurred. additionally, the contract allows for cancellation by either party, indicating that the obligation is not certain. according to the conceptual framework, a liability is defined as a present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits. in this scenario, jimbo ltd's planned maintenance does not meet the definition of a liability at the end of the financial period ending 30 june 2022.

to determine the recognition of a liability, the conceptual framework provides recognition criteria. these criteria state that a liability should be recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably measured.

in this case, the planned maintenance has not yet taken place. while there is a contract in place with an external entity for the maintenance, it is cancellable by either party at any time. this indicates that the obligation is not certain and does not meet the criterion of being probable. the fact that the contract can be cancelled means that jimbo ltd is not legally bound to incur the maintenance cost, and

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A 3rd degree burn has burnt only part of the epidermis. the epidermis only. the epidermis and dermis. the epidermis and part of the dermis.

Answers

A 3rd degree burn has burnt the epidermis and part of the dermis. Option 3 is the correct answer.

A 3rd degree burn is a severe burn that extends through the entire thickness of the skin. In a 3rd degree burn, the epidermis, which is the outermost layer of the skin, and part of the dermis, which is the layer beneath the epidermis, are affected. This type of burn destroys the full thickness of the epidermis and can extend into the deeper layers of the dermis.

The epidermis serves as a protective barrier for the body, preventing the entry of harmful substances and pathogens. It also helps regulate body temperature and plays a role in the production of vitamin D. The dermis provides structural support, contains blood vessels, nerve endings, sweat glands, and hair follicles.

Due to the severity of the injury, 3rd degree burns often require medical intervention and specialized treatment. They can result in extensive tissue damage, loss of sensation, and impaired healing. Treatment may involve surgical interventions, such as skin grafting, to promote healing and minimize the risk of infection. Rehabilitation and long-term care are often necessary to manage the physical and psychological effects of a 3rd degree burn.

Hence, option 3 is the right choice.

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Which type of power steering system relies on inputs to sense the steering
effort?
A) HPAS
B) EPAS
C) Both A and B
D) Neither A nor B
Back
50 of 61
Next
Submit All
!!!

Answers

Answer:

Hi

Explanation:

C is the correct answer

Which words means finds its food; a consumer.?

Answers

Answer:

The word that means finding its food is hunting

4 of 5) What is a good way to stay diversified?
A. Invest only in ETFs
B. Invest only in Mutual Funds
C. Re-balance your portfolio every 3 months
D. These are all good ways to stay diversified

Answers

Answer:

D?

Idrk but yeah Uhm coolll

Select the education and qualifications that are most helpful for Human Resources careers. Check all that apply
integrity
long-term planning skills
o communication skills
bachelor's degree
o research skills
creativity
o organizational skills

Answers

Education skills and the qualifications.

These are most helpful for human resource development are given as under. Thee skills involves the use if the analytical and behavioral adjustments in relations to the human capital. Therefore are very essential to have.

Thus answer to HR is planning, research and organization skills.

The skills that are necessary for the careers include the ability to solve problems related to planning and design. HR-related careers may include the generalist and the specialist.  Long-term planning, bachelor's degree, research skills, and organization skills.Hence the option A, C, D, and E are correct.

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Answer:

A, C, D, G

Explanation:

other is wrong

A Notary Signing Agent will exercise reasonable care in the performance of notarial duties and exercise _______ in verifying the identity of any borrower for a notarial act on a Mortgage or Deed of Trust.

Answers

A Notary Signing Agent will exercise reasonable care in the performance of notarial duties and exercise due diligence in verifying the identity of any borrower for a notarial act on a Mortgage or Deed of Trust.

Due diligence means that the agent will take all reasonable steps to verify the identity of the borrower, including reviewing government-issued identification documents and confirming that the information provided matches the borrower's appearance and signature.

In addition, the agent may also ask the borrower questions to confirm their identity or request additional documentation if necessary.

Verifying the identity of the borrower is critical in protecting against fraud or identity theft in the mortgage or deed of trust process. It is the responsibility of the Notary Signing Agent to ensure that the borrower is who they claim to be and that they are authorized to sign the document in question.

Failure to exercise due diligence in this regard can result in legal and financial consequences for both the agent and the borrower.

Overall, the role of the Notary Signing Agent is to act as an impartial witness to the signing of important legal documents.

By exercising reasonable care and due diligence in verifying the identity of borrowers, the agent can help ensure that the mortgage or deed of trust process proceeds smoothly and legally, with all parties protected from fraud or misrepresentation.

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Describe how easy or difficult you feel it will be to leave your investments alone for at least five years. Explain why. How can you remind yourself of the benefits of staying invested for the long term? HELP

Answers

The ease or difficulty of leaving investments untouched for at least five years can vary from person to person based on their individual circumstances and mindset.

Here are some factors that may influence one's ability to stay invested for the long term:

Financial goals and stability: If an individual has clear long-term financial goals and a stable financial situation, they may find it easier to stay invested. Knowing that the investments are aligned with their objectives and are part of a well-thought-out plan can provide confidence and motivation to stay invested.

Risk tolerance: A person's risk tolerance, or their willingness to accept fluctuations in the value of their investments, can impact their ability to stay invested. If someone is more risk-averse and gets easily anxious about market volatility, they might find it more challenging to resist the urge to sell during periods of market downturns.

Emotional discipline: Emotional discipline plays a crucial role in long-term investing. It requires the ability to detach oneself from short-term market fluctuations and make rational decisions based on long-term trends and goals. Developing emotional discipline can help individuals resist impulsive actions driven by fear or greed.

To remind oneself of the benefits of staying invested for the long term, consider the following strategies:

Education and research: Learn about the historical performance of the market over the long term and how staying invested can potentially yield higher returns. Understanding the power of compounding and the benefits of staying invested can provide motivation to remain committed.

Focus on long-term goals: Regularly remind yourself of your long-term financial goals and how staying invested aligns with those objectives. Visualize the impact of long-term growth and the potential benefits it can bring, such as retirement security or funding major life milestones.

Seek professional advice: Consult with a financial advisor who can provide guidance and reassurance during periods of market volatility. They can help you stay focused on your long-term strategy and provide perspective on market fluctuations.

Diversify your portfolio: A well-diversified portfolio can help reduce the impact of market volatility and increase the chances of long-term success. Knowing that your investments are spread across different asset classes and sectors can provide a sense of stability and confidence.

Set up reminders: Use tools such as calendar reminders or investment tracking apps to periodically review your investment performance and reinforce the importance of staying invested for the long term. These reminders can help you stay engaged and committed to your investment strategy.

Remember, every investor's situation is unique, and it's essential to assess your own circumstances and risk tolerance before making any investment decisions. If you're uncertain, consider consulting with a financial professional who can provide personalized advice based on your specific goals and risk profile.

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Which of the following is a way to track your spending?
A. Spreadsheet budget
B. Envelope method
C. An app
D. All of the above

Answers

All of the above that is spreadsheet budget, envelope method and an app is a way to track your spending.

What is a budget?

A budget is a calculation plan, typically money but not always, for a specific time frame, typically one year or one month. Predicted sales and revenue amounts, resource quantities (such as time, costs, and expenditures), environmental impacts (such as greenhouse gas emissions), other impacts, assets, liabilities, and cash flows are all possible inclusions in a budget. Budgets are a measurable way for businesses, governments, families, and other organizations to communicate their strategic plans of action. Although budgets are used by both businesses and governments to keep track of revenues and expenses, you may be most acquainted with them as a tool for managing your personal finances.

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A product with an MSRP of $10.00 has a volume discount of 30% and a promotion allowance of 15%. How much will the distributor receive in promotion allowance for each unit?

Answers

Distributor will receive 1.05 in promotion allowance for each unit.

Promotional Allowances are price breaks that a product's manufacturers or suppliers offer to business associates like distributors to encourage them to advertise their goods and boost sales.

Given;

Volume discount = 30%

promotion allowance = 15%

Distributor receive promotion allowance for each unit = Price after volume discount * % of promotion allowance

30-100= 70%

($10x70%)*5= 1.05 Per Unit

Distributor will receive 1.05 in promotion allowance for each unit.

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You go to buy a new computer and the salesperson tries to sell you an "extended warranty." You know that extended warranties can add a lot to the purchase price of the computer but you want some protection in case your computer breaks down. What are three questions you should ask before you agree to the contract?

Answers

Answer:

Extended warranty means provided extra protection to the breakage or problems occurred on a newly purchased item for a longer period.

Explanation:

Extended warranty is also known as the service agreement or maintenance agreement that is offered to a customer when they plans to purchase a new item like any electronic item including laptops, mobile phone, television, camera ,etc. It provides extra prolonged protection to the item or device than the regular warranty period.

In the context, the questions that I will ask the salesperson before agreeing the contract on the extended warranty on the purchase of the new computer are :

1. What is the extra amount I have to pay for the extended warranty.

2. For how long this "extended warranty" covers or protects my computer.

3. The extended warranty provides coverage on what items items and what defects.

Morricone Inc. has a position in a stock portfolio comprising the companies listed in Table 1. Correlation coefficients between stock returns are given in the correlation matrix. Table 1 Stock Position (£m) Daily Volatility 15 1.45% Eastwood Inc. Van Cleef Inc. 16 1.25% Wallach Inc. 12 1.1% Correlation Matrix Eastwood Van Cleef Eastwood 1 0.7 Van Cleef 1 Wallach Wallach 0.65 0.85 1 (a) Calculate the 5-day 95% value at risk (VaR) for the portfolio. (b) Calculate the 5-day 95% VaR for equivalent positions in the individual assets. (c) Explain and critically evaluate your results from parts (a) and (b).

Answers

The 5-day 95% Value at Risk (VaR) for the portfolio is £0.3389 million, considering the correlation matrix and daily volatilities.The individual assets' equivalent positions have VaR values of £0.3364 million for Eastwood Inc. and £0.4144 million for Van Cleef Inc.The portfolio's VaR is slightly lower than the sum of the VaR for individual assets, indicating a diversifying effect due to the correlation between Eastwood Inc. and Van Cleef Inc.

To calculate the 5-day 95% Value at Risk (VaR) for the portfolio, we need to consider the correlation matrix and the daily volatilities of the stocks in Table 1.

The formula for portfolio VaR is given by VaR_portfolio = (Portfolio Volatility) * (Z-score), where the Z-score corresponds to the desired confidence level.

(a) To calculate the portfolio VaR, we first need to determine the portfolio volatility. Using the correlation coefficients and volatilities provided, we can calculate the portfolio volatility as follows:

Portfolio Volatility = sqrt[(w1^2)*(σ1^2) + (w2^2)*(σ2^2) + 2*(w1)*(w2)*(σ1)*(σ2)*(ρ12)],

where w1 and w2 are the weights of Eastwood Inc. and Van Cleef Inc. in the portfolio, σ1 and σ2 are their respective daily volatilities, and ρ12 is the correlation coefficient between them.

Plugging in the values, we get:

Portfolio Volatility = sqrt[(15^2)*(0.0145^2) + (16^2)*(0.0125^2) + 2*(15)*(16)*(0.0145)*(0.0125)*(0.7)] = 0.2058.

Next, we need to determine the Z-score corresponding to a 5-day 95% confidence level. Assuming a normal distribution, the Z-score for a 95% confidence level is approximately 1.645.

Finally, we can calculate the portfolio VaR:

VaR_portfolio = (Portfolio Volatility) * (Z-score) = 0.2058 * 1.645 = 0.3389.

Therefore, the 5-day 95% VaR for the portfolio is £0.3389 million.

(b) To calculate the 5-day 95% VaR for equivalent positions in the individual assets, we can apply the same formula as above but consider each asset individually. For Eastwood Inc., the calculation would be:

VaR_Eastwood = (Position) * (Volatility) * (Z-score) = 15 * 0.0145 * 1.645 = 0.3364 million.

Similarly, for Van Cleef Inc., the calculation would be:

VaR_Van Cleef = (Position) * (Volatility) * (Z-score) = 16 * 0.0125 * 1.645 = 0.4144 million.

(c) The results from parts (a) and (b) show that the portfolio VaR (0.3389 million) is slightly lower than the sum of the VaR for individual assets (0.3364 million for Eastwood Inc. and 0.4144 million for Van Cleef Inc.).

This suggests that the correlation between Eastwood Inc. and Van Cleef Inc. (0.7) has a diversifying effect, reducing the overall risk in the portfolio.

However, it is important to note that the VaR measure assumes a normal distribution of returns and relies on historical data, which may not accurately capture extreme market events or changes in correlations.

Therefore, VaR should be used as a tool for risk assessment alongside other risk management techniques and considerations.

In addition, the VaR calculated here only provides an estimate of potential losses at a specific confidence level (95% in this case) over a specific time horizon (5 days).

It does not capture the possibility of losses exceeding the VaR estimate in extreme scenarios. Therefore, it is crucial to continually monitor and assess risks in the portfolio.

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(Appendix 4B) Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the sequential method. General Factory is allocated first in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data: Support Departments Operating Divisions Power General Factory Battery Small Motors Overhead costs $160,000 $430,000 $163,000 $84,600 Machine hours 2,000 2,000 9,000 3,000 Square footage 1,000 1,500 10,000 20,000 Direct labor hours 18,000 60,000 Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) Allocation ratios for General Factory

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The allocation ratios for the Power support department are calculated in the same way, using the overhead costs and the same three allocation base ratios (machine hours, square footage, and direct labor hours).

How do you calculate the allocation ratios for the General Factory support department?

The allocation ratios for the General Factory support department can be calculated as follows:

Machine hours ratio:

Battery: 9,000 machine hours / 2,000 total machine hours = 4.5

Small Motors: 3,000 machine hours / 2,000 total machine hours = 1.5

Square footage ratio:

Battery: 10,000 square feet / (1,000 total square feet + 1,500 total square feet) = .625

Small Motors: 20,000 square feet / (1,000 total square feet + 1,500 total square feet) = 1.375

Direct labor hours ratio:

Battery: 60,000 direct labor hours / 18,000 total direct labor hours = 3.333

Small Motors: 18,000 direct labor hours /18,000 total direct labor hours= 1

The allocation ratios for the General Factory support department are calculated by taking the average of the three ratios.

Machine hours ratio: (4.5 + 1.5) / 2 = 3

Square footage ratio: (.625 + 1.375) / 2 = 1.5

Direct labor hours ratio: (3.333 + 1) / 2 = 2.167

The average allocation ratio for the General Factory support department is: (3 + 1.5 + 2.167) / 3 = 2.389

Allocation ratios for Power:

The allocation ratios for the Power support department are calculated in the same way, using the overhead costs and the same three allocation base ratios (machine hours, square footage, and direct labor hours).

Machine hours ratio:

Battery: 9,000 machine hours / 2,000 total machine hours = 4.5

Small Motors: 3,000 machine hours / 2,000 total machine hours = 1.5

Square footage ratio:

Battery: 10,000 square feet / (1,000 total square feet + 1,500 total square feet) = .625

Small Motors: 20,000 square feet / (1,000 total square feet + 1,500 total square feet) = 1.375

Direct labor hours ratio:

Battery: 60,000 direct labor hours / 18,000 total direct labor hours = 3.333

Small Motors: 18,000 direct labor hours /18,000 total direct labor hours= 1

The average allocation ratio for the Power support department is: (4.5 + 1.5) / 2 = 3

The allocation ratios for the Power and General Factory support departments are as follows:

Power: 3, General Factory: 2.389

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Using a loan could help with the purchase of which of the following?a) A new televisionb) A dream weddingc) A housed) Airline tickets to your dream vacation

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Using a personal loan could help with the purchase of   A house .Option C is correct .

What does the term "personal loan" mean?

When someone borrows money for a personal need, such as investing in a business, it is referred to as a personal loan (also known as a consumer loan).

What is an example of a personal loan?

A personal loan is a sum of money that you can borrow and use for a number of things. For instance, you may utilize a personal loan to pay off debt, finance home improvements, or finance your ideal wedding. Online lenders, credit unions, and banks can all provide personal loans.

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Freedonia has a comparative advantage In the production ofwhile Desonia has a comparative advantage in the production of Suppose that Freedonia and Desoria specialize in the production of the goods which each has a comparative advantage. After specialization, the two countrles can produce a total million pounds of potatoes and pounds of coffee

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Comparative advantage is a term used in global commerce which means a country can make something with less cost than another. When a country focuses on making what they're good at and trades with others, everyone gets more stuff and it's more efficient.

Comparative advantage is a concept in international trade that describes a situation where a country can produce a good or service at a lower opportunity cost than another country. This means that a country can produce a particular good more efficiently or at a lower cost than another country, even if it does not have an absolute advantage in producing that good. When countries specialize in producing goods in which they have a comparative advantage, and then trade with each other, both countries can benefit from increased efficiency and access to a wider range of goods and services.

Therefore, in conclusion it can be said that comparative advantage is a concept in international trade that refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Specialization in producing goods in which a country has a comparative advantage and then trading with other countries can result in increased efficiency and access to a wider range of goods and services, leading to mutual benefits for all countries involved.

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The question is :

What is comparative advantage in international trade?

brainliest for the people who no why ro/blox not working to day

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Here you go, Its in the picture.

brainliest for the people who no why ro/blox not working to day

Answer:

Try updating the game

Explanation:

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