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How is an investment bank different from a commercial bank

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How is an investment bank different from a commercial bank

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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

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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

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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.

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The formula is
A=p (1+r/k)^kt

A future value 10000
P present value 6000
R interest rate 0.0375
K compounded every two months 6
T time?

We need to solve for t
T= [log (A/p)÷log (1+r/k)]÷k
T=(log(10,000÷6,000)÷log(1+0.0375÷6))÷6
T=13.7 years
Round your answer to get
T=14 years

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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?

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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 the US needs to expand its power and influence over other countries. This would allow the excess goods and services to be sold to new consumers, generating more profits for business owners.

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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.

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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 quicklly
Commodity 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 versa. This exact condition makes the price for that commodity also fluctuated really quickly.

Post your answer

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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

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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 after 9 years = $4,000

$4,000 after 18 years = $8,000

$8,000 after 27 years = $16,000

$16,000 after 36 years = $32,000

$32,000 after 45 years = $64,000

$64,000 after 54 years = $128,000

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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?

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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

Savings from Depreciation = $880,000 * 0.35 = $308,000

Therefore,

Annual Cash Flow = Annual Profit + Savings from
Depreciation

Annual Cash Flow = $1,305,000 + $308,000

Annual Cash Flow = $1,613,000

 

The present value of annuity is:

P = A [1 – (1 + i)^-n ] / i

P = $1,613,000 [1 – (1 + 0.13)^(-3)] / 0.13

P =
$3,808,539.14 = NPV

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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

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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, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1

TE = $26.8

 

Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

CM = $20.2 per unit

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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.

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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.

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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?

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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 invested with 6% interest rate was 1500-x.

Total interest she earn was $106.40

Write this information into mathematical form.

xtimes frac{8}{100}+frac{6}{100}(1500-x)=106.40

xtimes 0.08+0.06(1500-x)=106.40

0.08x+90-0.06x=106.40

0.08x-0.06x=106.40-90

0.02x=16.4

x=820

Hence, she invested $820 with 8% interest rate.

The amount she invested with 6% interest rate was 1500-x.

Substitute the value of x in above.

1500-820=680

Hence, she invested $680 with 6% interest rate.

The correct option is B) $680.

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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):?

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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 life
Depreciation=(equipment cost-salvage value)/useful life

Depreciation=(10,575−1,695)÷3
=2,960

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

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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 given sides were AD = 44.8 cm, DC = 72 cm and AC = 84.8 cm.

According to properties of kite

Two disjoint pairs of consecutive sides are congruent.

So, AD=AB=44.8 cm

DC=BC=72 cm

The diagonals are perpendicular.

So, AC ⊥ BD

Let O be the point where diagonal intersect let let the partition be x and y.

AC= AO+OC

AC=  x+y=84.8 …….[1]

Perpendicular bisect the diagonal BD into equal parts let it be z.

BD=BO+OD

BD=z+z

Applying Pythagorean theorem in ΔAOD

where H=AD=44.8 ,P= AO=x , B=OD=z

H^2=P^2+B^2

(44.8)^2=x^2+z^2  ………[2]

Applying Pythagorean theorem in ΔCOD

where H=DC=72 ,P= OC=y , B=OD=z

H^2=P^2+B^2

(72)^2=y^2+z^2 …………[3]

Subtract [2] and [3]

(72)^2-(44.8)^2=y^2+z^2-x^2-z^2

5184-2007.04=(x+y)(x-y)

3176.96=(84.8)(x-y)

37.464=x-y ……….[4]

Add equation [1] and [4], to get values of x and y

x+y+x-y=84.8+37.464

2x=122.264

x=61.132

Substitute x in [1]

x+y=84.8

61.132+y=84.8

y=23.668

Substitute value of x in equation [2], to get z

(44.8)^2=x^2+z^2

(44.8)^2=(23.668)^2+z^2

2007.04-560.174224=z^2

z=sqrt{1446.865776}

z=38.06

We know, BD=z+z

BD= 38.06+38.06

BD= 76.12

Nearest to whole number BD=76 cm

Therefore, Option c – BD=76 cm is correct.

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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%

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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, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1

TE = $26.8

 

Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

CM = $20.2 per unit

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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?

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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, calculate all expenses:

Direct materials per unit = $234,948 / 27,970 units
manufactured = $8.4

Direct labor per unit = $131,459 / 27,970 units
manufactured = $4.7

Variable manufacturing overhead per unit = $240,542 / 27,970
units manufactured = $8.6

Variable selling expenses per unit = $113,220 / 22,200
units sold = $5.1

TE = $26.8

 

Therefore the CM is:

CM = SP – TE

CM = $47 – $26.8

CM = $20.2 per unit

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

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The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 1200000
PMT semiannual payment 75000
R interest rate 0.0635
K compounded semiannual 2
N time?
1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]
Solve for n
1,200,000÷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

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

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The formula of the present value of annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 1200000
PMT semiannual payment 75000
R interest rate 0.0635
K compounded semiannual 2
N time?
1200000=75000[(1-(1+0.0635/2)^(-2n))÷(0.0635/2)]
Solve for n
1,200,000÷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

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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

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Initial investment on Jan 1, 2013 = (500 shares)*($24 per share) = $12,000

Dividend collected at the end of 2013 = $2.50*500 = $1,250
Dividend collected at the end of 2014 = $4*500 = $2,000
Dividend collected at the end of 2015 = $3*500 = $1,500
Mony received from sellng the 500 shares at the end of 2015 = $20*500 = $10,000

Total returns at the end of 2015 = 1,250+2,000+1,500+10,000 = $14,750
Net gains = 14750 – 12000 = $2,750
Duration = 3 years
Realized total rate of return = 2750/12000 = 0.2292 = 22.9%

Answer: 22.9%

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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.)

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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 number of ways is which 30 competitors from 50 can qualify is given by the formula of combinations, which is:

C (m,n) = m! / (n! * (m -n)! )

=> C (50,30) = 50! / (30! (50 – 30)! ) = (50!) / [30! (50 – 30)!] = 50! / [30! 20!] =

 = 47,129,212,243,960 different ways the qualifiying round of 30 competitors can be selected from the 50 competitors.

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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?

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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?

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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?

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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?

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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

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The triangle ABC is similar to triangle LMP. The order here is very important. The letters correspond to one another
A 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 also correspond to one another. 
AB corresponds to LM (first two letters of each sequence)
AC corresponds to LP (first and last letters of each sequence)
BC corresponds to MP (last two letters of each sequence)

————————————

AB corresponds to LM. AB is 4 units long. LM is 2 units long. So AB is twice as long as LM. This ratio (of 2:1) will be applied to every paired corresponding value.

Also, the right angle is at angle M for triangle LMP. The right angle will be at angle B for triangle ABC (since B corresponds to M). The answer will have an x coordinate of 7. So the answer is either choice B or choice C.

If we move 4 units down from point B, we land on (7,-10). That isn’t listed as an answer choice. Let’s try moving 4 units up from point B. We land on (7,-2). This is an answer choice

So the final answer is choice C) (7,-2)

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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?

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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 can cause social problems

class- for example whether the society is more uniform, or whether huge differences between classes exist

other aspects can include

age- can tell us how many people are in a working age

education and literacy – it can help us predict the wealth of the country

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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.

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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 = -60
x = 12000

Therefore, that person invests 12,000 at 2.5%
and
20,000 – 12,000 = 8,000 at 3%

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

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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 maximum she will spend is 0.25times2986=746.50 dollars.

She has saved up $33,000 for a down payment.

So, loan amount or principle will be = 163000-33000=130000 dollars

Giselle is considering the following loan option: 20% down, 30 year at a fixed rate of 6.25%.

Lets check the monthly payment for this option:

The EMI formula is:

frac{p*r*(1+r)^{n} }{(1+r)^{n}-1}

p = 130000

n = 30*12=360

r = 6.25/12/100=0.0052083

Putting the values in formula we get:

frac{130000*0.0052083*(1+0.0052083)^{360} }{(1+0.0052083)^{360}-1}

= $800.43

This option is not viable.

So, lets check other options.

1. Change to a 15 year fixed loan means n will be 15*12=180 and rest values will be same.

Putting the values in formula we get,

frac{130000*0.0052083*(1+0.0052083)^{180} }{(1+0.0052083)^{180}-1}

= $1114.66

This is not viable.

b.  Change the interest to 5.5%  

Now r = 5.5/12/100=0.004583

Rest will remain the same and n = 360

Putting the values in formula we get,

frac{130000*0.004583*(1+0.004583)^{360} }{(1+0.004583)^{360}-1}

= $738.095

This is a viable option as EMI is less than $746.50.

C. Change the down payment to 18% down

0.18times163000=29340

So, p = 163000-29340=133660

n = 30*12=360

r = 6.25/12/100=0.0052083

Putting the values in formula we get:

frac{133660*0.0052083*(1+0.0052083)^{360} }{(1+0.0052083)^{360}-1}

= $822.97

This is also not viable.

Therefore, the correct answer is option B : Change the interest to 5.5%

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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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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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