How is an investment bank different from a commercial bank

Read More »## Which investment option is eligible for tax deductions for calculating the net taxable income? A.) lottery winnings B.) alimony received C.) mortgage interest payments D.) interest on retirement plans E.) income from dividends

Which investment option is eligible for tax deductions for calculating the net taxable income? A.) lottery winnings B.) alimony received C.) mortgage interest payments D.) interest on retirement plans E.) income from dividends

Read More »## You invest $6000 into an account paying 3.75% annual interest compounded bimonthly(every 2 months), and you want to have $10,000 saved for your first year of college. How long will it take for your investment to grow that large? Round your answer to the nearest whole number.

The formula isA=p (1+r/k)^kt A future value 10000P present value 6000R interest rate 0.0375K compounded every two months 6T time? We need to solve for tT= [log (A/p)÷log (1+r/k)]÷kT=(log(10,000÷6,000)÷log(1+0.0375÷6))÷6T=13.7 yearsRound your answer to getT=14 years

Read More »## The quote below was part of a campaign speech given by Senator Albert J. Beveridge in 1898: “But today we are raising more than we can consume. Today we are making more than we can use. Today our industrial society is congested; there are more workers than there is work; there is more capital than there is investment. We do not need more money—we need more circulation, more employment. Therefore, we must find new markets for our produce, new occupation for our capital, new work for our labor.” Which type of policy was this statement intended to justify?

The correct answer is imperialism. Imperialism is when one country tries to extend its power over another country or territory. This can be done through warfare or the signing of treaties/agreements. The quote by Beveridge is discussing how American society is producing more goods than its ever produced and that …

Read More »## Why is it risky to invest in a commodity? A commodity has little or no value as a long-term investment. Commodity stocks cannot be traded after you purchase them. The commodity’s price might drop significantly very quickly. The investment will tie up your money for more than one year.

Answered by answersmine AT 22/10/2019 – 04:02 AM It is risky to invest in a commodity because: The commodity’s price might drop significantly very quickllyCommodity products are circulated really quickly. This will affect the rarity of the product in the markets. If the rarity is high, the price will increase and vice …

Read More »## Investment historically have doubled every nine years if you start with a $2,000 investment how much money would you have after 54 years. first complete the equation

Answer: $128,000 Step-by-step explanation: Investment historically have doubled every nine years. If you start with a $2,000 investment. After 54 years it would be doubled = 54/9 = 6 times 2000 × 2 × 2 × 2 × 2 × 2 × 2 = $128,000 We can see : $2,000 …

Read More »## Down under boomerang, inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.64 million. the fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. the project is estimated to generate $2,060,000 in annual sales, with costs of $755,000. the tax rate is 35 percent and the required return on the project is 13 percent. what is the project’s npv?

To answer this problem, 1st let us calculate the total annual cash flow. We define the given variables: Annual Income = $2,060,000 Annual Cost = $755,000 Annual Profit = $2,060,000 – $755,000 = $1,305,000 Annual Tax = $1,305,000 * 0.35 = $456,750 Depreciation = $2.64 million / 3 = $880,000 …

Read More »## Brian Wilson has a baseball card collection passed down to him from his grandfather. He is particularly proud of the signed Hank Aaron baseball card that he has. What type of investment does he hold? A. Direct investment in real estate B. Indirect investment in real estate C. Investment in precious metals D. Investment in collectibles

The Contribution Margin per unit (CM) can be calculated from the difference of Selling Price per unit (SP) and Total Expenses per unit (TE). First, let’s calculate the value of SP: SP = Sales / Units sold SP = $1,043,400 / 22,200 units sold SP = $47 Second, …

Read More »## Ceasar opens a bank account and makes an initial deposit of $800. The banker tells Ceasar that he is going to receive an annual rate of 10% on his investment. Find the bank balance assuming Tom leaves the account untouched for 8 years.

Ceasar opens a bank account and makes an initial deposit of $800. The banker tells Ceasar that he is going to receive an annual rate of 10% on his investment. Find the bank balance assuming Tom leaves the account untouched for 8 years.

Read More »## Calculating the return on investment using financial leverage. suppose Dave invested only 20,000 of his own money and borrowed 180,000 interest-free from his rich father. what was his return on investment?

Answer: The correct option is B) $680. Step-by-step explanation: Consider the provided information. Her total amount invested was $1,500. At the end of the year, she had earned $106.40 in interest. Let she invested x amount with 8% interest rate. Total amount she invested was $1,500, thus the amount she …

Read More »## When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable. if the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n):?

Depreciation=(equipment cost-salvage value)/useful life Depreciation=(16,950−4,200)÷6=2,125 per year Book value after 3 years=16,950−2,125×3=10,575 Now find the amount of depreciation to be charged against the equipment during each of the remaining years of its useful lifeDepreciation=(equipment cost-salvage value)/useful life Depreciation=(10,575−1,695)÷3=2,960

Read More »## How long will it take a $800 investment to be worth $900 if it is continuously compounded at 11% per year?

Answer: Option C – BD=76 cm Step-by-step explanation: Given : You are designing a diamond-shaped kite. you know that AD = 44.8 cm, DC = 72 cm, and AC = 84.8 cm. To find : How long BD should it be? Solution : First we draw a rough diagram. The …

Read More »## The profit margin for central division is 20% and the investment turnover is 2.8. what is the rate of return on investment for central division? a. 14% b. 56% c. 20% d. 7.1%

The Contribution Margin per unit (CM) can be calculated from the difference of Selling Price per unit (SP) and Total Expenses per unit (TE). First, let’s calculate the value of SP: SP = Sales / Units sold SP = $1,043,400 / 22,200 units sold SP = $47 Second, …

Read More »## Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. if the interest is compounded monthly, what is the annual rate of return earned on the investment?

The Contribution Margin per unit (CM) can be calculated from the difference of Selling Price per unit (SP) and Total Expenses per unit (TE). First, let’s calculate the value of SP: SP = Sales / Units sold SP = $1,043,400 / 22,200 units sold SP = $47 Second, …

Read More »## A principal of $3800 is invested at 6.75% interest, compounded annually. How much will the investment be worth after 6 years?

The formula of the present value of annuity ordinary isPv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]Pv present value 1200000PMT semiannual payment 75000R interest rate 0.0635K compounded semiannual 2N time? 1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]Solve for n1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)] 16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)] 16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n)) 0.508=(1-(1+0.0635/2)^(-2n)) 0.508−1=-(1+0.0635/2)^(-2n) −0.492=-(1+0.0635/2)^(-2n) 0.492=(1+0.0635/2)^(-2n) -2n=log(0.492)÷log(1+0.0635÷2) N=-[log(0.492)÷log(1+0.0635÷2)]÷2 N=11.35 years

Read More »## A principal of $2600 is invested at 7.5% interest, compounded annually. How much will the investment be worth after 8 years?

The formula of the present value of annuity ordinary isPv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]Pv present value 1200000PMT semiannual payment 75000R interest rate 0.0635K compounded semiannual 2N time? 1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]Solve for n1,200,000÷75,000=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)] 16=[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)] 16×(0.0635÷2)=(1-(1+0.0635/2)^(-2n)) 0.508=(1-(1+0.0635/2)^(-2n)) 0.508−1=-(1+0.0635/2)^(-2n) −0.492=-(1+0.0635/2)^(-2n) 0.492=(1+0.0635/2)^(-2n) -2n=log(0.492)÷log(1+0.0635÷2) N=-[log(0.492)÷log(1+0.0635÷2)]÷2 N=11.35 years

Read More »## For an investment in a stock, the probability of the return being –10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. given the probability distributions, what is the expected rate of return for the investment

Initial investment on Jan 1, 2013 = (500 shares)*($24 per share) = $12,000 Dividend collected at the end of 2013 = $2.50*500 = $1,250Dividend collected at the end of 2014 = $4*500 = $2,000Dividend collected at the end of 2015 = $3*500 = $1,500Mony received from sellng the 500 shares at …

Read More »## What is the future value of a $1,500 investment, earning 10 percent interest per period, after two periods? (Round your answer to the nearest cent.)

You need to determine the number of ways in which 30 competitors from 50 can qualify. First, you have to realize that the order is irrelevant, that is: it is the same competitor_1, competitor _2, competitor _3 than competitor_3, competitor_2, competitor_1, or any combination of those three competitors. So, the …

Read More »## On two investments totaling $10,500, Brian lost 6% on one and earned 8% on the other. If his net annual receipts were $497, how much was each investment?

On two investments totaling $10,500, Brian lost 6% on one and earned 8% on the other. If his net annual receipts were $497, how much was each investment?

Read More »## On two investments totaling $11,500, Peter lost 3% on one and earned 4% on the other. If his net annual receipts were $201, how much was each investment?

On two investments totaling $11,500, Peter lost 3% on one and earned 4% on the other. If his net annual receipts were $201, how much was each investment?

Read More »## An investment bank has a position vacant for the post of finance manager. Which three skills will they look for in their candidates? A.creativity B.decision making C.teamwork abilities D.quantitative data analysis E.selling skills

The triangle ABC is similar to triangle LMP. The order here is very important. The letters correspond to one anotherA corresponds to L (first letters of each sequence) B corresponds to M (second letters of each sequence)C corresponds to P (third letters of each sequence) In a similar fashion, the segments …

Read More »## Bonnie and clyde have decided to purchase a new entertainment center. as this will be a major financial investment, they spend a lot of time researching their options. helen, a psychology student, advises them to distract themselves with an alternate activity before they come to any purchase decisions. is this a good advice?

Some of them you mentioned already : race – the racial make up of the society (it can be informative if the race is coorelated for example with income) gender – the gender make up of a society, which is usually 50% male and 50% female, but differences from that …

Read More »## A formalized report that summarizes your current financial situation, analyzes your financial needs, and recommends a direction for your financial activities is a(n) A. insurance prospectus. B. financial plan. C. budget. D. investment forecast.

Let:x = amount in the account invested in 2.5%20000 – x = amount in the account invested in 3% Solution:.025x + .03 (20000 – x) = 540.025x + 600 – .03x = 540-.005x + 600 = 540-.005x = 540 – 600-.005x = -60x = 12000 Therefore, that person invests 12,000 …

Read More »## How much interest is earned in 2 years on an investment of $2000? The interest rate is 3%

Answer: The correct answer is option B : Change the interest to 5.5% Step-by-step explanation: Giselle wants to buy a condo that has a purchase price of $163,000. She earns $2,986 a month and wants to spend no more than 25% of her income on her mortgage payment. Means the …

Read More »## Nyda investment of 1500. at an 1nterest of 3% per annum is compounded annually. To the nearest dollar , how much was her investment worth after 5 years?

Nyda investment of 1500. at an 1nterest of 3% per annum is compounded annually. To the nearest dollar , how much was her investment worth after 5 years?

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