How much do you need to invest today

Assignment Help Business Economics
Reference no: EM132196171

Suppose you need to pay your air-ticket of $2400 for a European trip in 12 months. If you deposit money now, you can earn 7% per annum with a 50% probability, 6% with a 25% probability and 8% with a 25% probability. How much do you need to invest today?

Reference no: EM132196171

Questions Cloud

Find the sum of first n natural numbers using recursion : Write a C program to find the sum of first n natural numbers using recursion. The user inputs the value of n.
Which offers a choice in how she may receive her prize : If the interest rate is 10% per annum, compounded annually, which of the following prizes has the highest present value?
Write about the protagonist and the war : Think about the book "A Long Way Gone", write about the protagonist and the war. The Movie "How to Make an American Quilt" delves into several characters'.
What is the value of stock today : After that, the firm expects to maintain a constant dividend growth rate of 2% per year. What is the value of this stock today if the required return is 14%?
How much do you need to invest today : If you deposit money now, you can earn 7% per annum with a 50% probability, 6% with a 25% probability and 8% with a 25% probability.
How does administrative law affect companies : What is administrative law? How does administrative law affect companies?
The understanding of inheritance and polymorphism : Write a C++ program that will be an information system for Ohio Community College using classes as well as demonstrating a basic understanding.
Role in ensuring the law is fulfilling its purpose : What about businesses - do they have a role in ensuring the law is fulfilling its purpose?
How do you believe syracuse university can help you : Who is the person you dream of becoming and how do you believe Syracuse University can help you achieve this?

Reviews

Write a Review

Business Economics Questions & Answers

  Several indifference curves to illustrate carls preference

Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt. Draw several indifference curves to illustrate Carl's preferences. Are Carl's preferences co..

  Alternative but compatible software to microsoft office

The 2006 introduction of Google Docs, an online alternative but compatible software to Microsoft Office, forced Microsoft to develop new ideas to maintain.

  The reserve ratio-the money multiplier-banks create money

In the special case of 100-percent-reserve banking, the reserve ratio is 1, the money multiplier is 2, and banks create money. In the special case of 100-percent-reserve banking, the reserve ratio is 1, the money multiplier is 1, and banks do not cre..

  The coase theorem is significant

The Coase Theorem is significant because it. shows that it is crucially important how property rights are assigned. demonstrates that there are no transactions costs involved with correcting externalities.

  Determine the firm optimal advertising-to-sales ratio

The elasticity of demand for a firm’s product is -3 and its advertising elasticity of demand is 0.15. Determine the firm’s optimal advertising-to-sales ratio.  If the firm’s revenues are $60,000, what is its profit-maximizing level of advertising?

  The intercept of compressed demand function

The intercept of a compressed demand function is 10,000 and the coefficient of inverse demand function is – 0. 4. Calculate the following: demand curve ; total revenue curve ; profit maximizing price, when MC = $0.

  Illustrate what is michelle''s opportunity cost of producing

Illustrate what is Michelle's opportunity cost of producing potatoes. What is Michelle's opportunity cost of producing chickens.

  Receives dividends from the shares of stock

If a Japanese citizen in Japan receives dividends from the shares of stock she or he owns in General Electric, an American firm, the transaction would be recorded on the U.S. balance of payments as a:

  Experiencing increased cyberattack threats

Your company's industry is experiencing increased cyberattack threats. As Lead Information Security Engineer, you have the responsibility.

  Analyze the dynamics of supply and demand

Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.

  What is the elasticity of demand for tickets

Question 1: The Toronto Blue Jays raises ticket prices from $100 to $120 per seat and experience a decline in ticket sales from 12000 to 10000 per game.

  Comparative advantage in making computers

China can make 10 computers and 20 cell phones an hour, and Japan can make 8 computers and 15 cell phones an hour.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd