Assume that at the beginning of the year, you purchase an investment for $5,100 that pays $100
Question:
Assume that at the beginning of the year, you purchase an investment for $5,100 that pays $100 annual income. Also assume the investment’s value has decreased to $4,700 by the end of the year.
1. What is the rate of return for this investment?
2. Is the rate of return a positive or a negative number?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
The rate of return for this investment is 784 The rate of return is negative To calculate the rate o...View the full answer
Answered By
Leah Muchiri
I am graduate in Bachelor of Actuarial Science and a certified accountant. I am also a prolific writer with six years experience in academic writing. My working principle are being timely and delivering 100% plagiarized free work. I usually present a precised solution to every work am assigned to do. Most of my student earn A++ GRADE using my precised and correct solutions.
4.90+
52+ Reviews
125+ Question Solved
Related Book For
Personal Finance
ISBN: 9781264101597
14th Edition
Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart
Question Posted:
Students also viewed these Business questions
-
Assume that at the beginning of the year, you purchase an investment for $7,000 that pays $100 annual income. Also assume the investment's value has decreased to $6,600 by the end of the year. a....
-
Assume that at the beginning of the year, you purchase an investment for $5,500 that pays $110 annual income. Also assume the investment's value has increased to $6,400 by the end of the year. a....
-
At the end of 2019 , Mcknight decides to adjust the manufacturing overhead rate to 170 % of direct labor cost. She explains to the company president that, because overhead was underallocated in 2019...
-
9. Let x = (1.11... 111000...) 26, in which the fractional part has 26 1's followed by O's. For the Marc-32, determine x, x+, f(x), x-xx-x, xx, and lx-fl(x)/x.
-
Presented below is information related to Dino Radja Company. Instructions Compute the ending inventory for Dino Radja Company for 2005 through 2010 using the dollar-value LIFOmethod. Ending...
-
The cart's change of momentum is A. -30 kg m/s B. -20 kg. m/s C. -10 kg. m/s D. 10 kg. m/s E. 20 kg. m/s F. 30 kg m/s
-
Using only the factor formulas given in Table 2.6, derive Equation 7.6 starting with Equation 7.3. TABLE 2.6 Summary of Discrete Compounding Interest Factors. To Find Given Factor Symbol Name P F...
-
Adani Inc. sells goods to Geo Company for $11,000 on January 2, 2012, with payment due in 12 months. The fair value of the goods at the date of sale is $10,000. Prepare the journal entry to record...
-
Consider the inverse demand function below for a market with 2 dominant firms: P=600-3(Q 1 +Q 2 ) Assume that both firms have identical marginal costs: $300, yet one of them, Firm 1, is the leader...
-
1. Assuming Anson decided to charge barrel costs (but not warehousing and aging costs) to inventory, what 2012 income statement and balance sheet items would change, and what would the new amounts...
-
Assume that you purchased a $1,000 corporate bond. The interest rate is 3.70 percent. What is the dollar amount of annual interest you will receive each year?
-
Assume that at the beginning of the year, you purchase an investment for $8,200 that pays $80 annual income. Also assume that the investments value has increased to $9,000 at the end of the year. 1....
-
What type of business strategy is used at Disney theme parks? What specific operations activities are most important?
-
For each of the following, compute the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future value...
-
Epstein's creditors are threatening to garnish his bank account. Epstein, who is insolvent, makes a gift of $20,000 to the Jewish Community Federation of Richmond. Within two years, Epstein files for...
-
Describe the features of an asset and give two examples of assets typically recorded in a company's balance sheet.
-
Explore the principles of deadlock detection and avoidance in operating systems, discussing the various deadlock resolution strategies, such as resource preemption, process rollback, and deadlock...
-
Emerald City Stained Glass Company is creating their Selling and Administrative Expense Budget for next year. They know the following information: Budgeted sales are expected to be 10,000 units,...
-
Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs can together bill 640 hours per month....
-
How has the too-big-to-fail policy been limited in the FDICIA legislation? How might limiting the too-big-to-fail policy help reduce the risk of a future banking crisis?
-
(a) Belinda believes that the couple could maintain their current level of living if their retirement income represented 75 percent of their current annual income after adjusting for inflation....
-
(a) Sum up the present values of the Hernandezes assets, excluding their personal residence, and identify which assets derive from tax-sheltered accounts. (b) Assume that the Hernandezes sold their...
-
Julia is now in her early 50s. She has had two jobs in her career so far and participated fully in the defined-contribution plans offered by both employers. When she left her first position, she...
-
Discuss in detail how the ergonomics design can improve safety and assist in curbing Covid-19 transmission in the office.
-
The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, "I don't have time." You have been asked to prepare a reconciliation and review the procedures...
-
Discuss the organisational and individual factors that contribute to political behaviours, and the effect this has on the business environment.
Study smarter with the SolutionInn App