Download >>> https://tinurli.com/283vub
The questions below are from a standardized test called the SAT. The tests are modeled after the Scholastic Aptitude Test, designed to measure students' mathematical abilities and verbal reasoning skills, which can be used to predict future success in college. In order to make these studies easier for students, there is a list of topics that have been studied by scholars and professors over time that have been tested on many occasions. The purpose of this post is not to test your knowledge on different topics but rather to provide some help with understanding some questions you may come across when studying for a test or just generally trying to improve your knowledge in a certain subject area. We will answer the problem for this SAT question below. A company has $1,000,000 in cash and a policy of making a certain annual interest payment at the end of each year. The policy states that if a cash balance of more than $200,000 is maintained in the bank at the end of each year, that they will make no additional interest payments for that year. Furthermore, it is stated that the balance in excess of $200,000 will be invested in bonds at their face value. The interest rate is 7%. What would be the value of the bonds you invest at the end of each year? In this problem we assume that there are no taxes on either cash or bonds. Concerning taxes, the answer is 0%. The company in this question officially charges a 7% interest rate on its bonds. Also, there are no taxes collected when interest is collected. This means that the interest payment made to you will be $100,000 for each year. The value of your bonds at the end of each year will be $100,000 if the value of the bonds increases by 7% each year and you have a perpetual bond policy. If bonds have no fluctuation in their price and they have a face value of $1 million, then after five years your assets will be worth more than $1 million. The problem is to determine the value of your bonds after five years. Consider this situation: one dollar today equals $1.10 in five years, $1.25 in six years, $1.40 in seven years, and so on. If the interest rate is 7% per year compounded annually, what will a dollar be worth in five years? Bond prices change over time because of changes in interest rates and the price of a bond's face value. We will use a constant discount rate to discount future values from now using the formula above. The formula for one dollar today is (1.10)5 + (1.25)6 + ...+ (1.40)7 = 0, which equals $1.40 in five years. The value of your bonds will be $100,000 at the end of five years if you pay 7% interest every year and the value of your bonds does not drop or rise from now until then. In our example, it will be paid at a rate of 7% every year as long as the bonds have a face value of $1 million. cfa1e77820
コメント