If gamma=1/2, R=200, S=50, calculate p such that offering the high and low interest yields the same amount of profit for the lender a. 1/3 b. 6/7 c. 1/7 d. 1/2
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If gamma=1/2, R=200, S=50, calculate p such that offering the high and low interest yields the same amount of profit for the lender
a. 1/3
b. 6/7
c. 1/7
d. 1/2
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- Many retirement funds charge an administrative fee equal to 0.25% on managed assets. Suppose that Alex and Spenser each invest $50,000 in the same year. Alex invests in a no-load fund (that doesn’t charge the 0.25% fee) and earns 5% a year. Spenser uses another retirement fund that charges the 0.25% fee and so only earns 4.75%. After 30 years, how much more will Alex have than Spenser?Dr. Rubin has $10,000 to invest for three years. Two banks offer a 2 percent interest rate, but bank A compounds quarterly and bank B compounds semiannually. To what value would his money grow in each of the two banks? Do I use the compound rate of growth formula? R=(Y/X)^(1/N)-1How can an inaccurate estimate of assets have serious consequences?
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- What is the difference between a loan and an investment? A. Investments are not made to sole proprietors. B. The investment is capped at a certain dollar amount, and a loan is not. C. Loans are only available to corporations and LLCs. D. Loans must be paid back, but investments do not.could you show how to determine the bond's present value without a calculator?Indicate whether the given statements is true (T) or false (F): "Interest is money paid for the use of equity capital".
- Using a graph similar to the one in figure 1 show how, when interest rates increases, savings decreases. make sure to provide proper explanation. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.What can be best said about a banker whose interest rate is 20% on a one-year loan worth $1000 today?Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely.
