Support the consumption in periods

Assignment Help Finance Basics
Reference no: EM133056146

a. What is the market interest rate [x]? (sample answer: 18.42%)

As a financial analyst at Citibank, you want to help your clients to determine how to the income and consumption over this year and next. Refer to the above graph. Point A is $5000 and Point B is $5700. The solid sloping line represents the opportunities for investment in the capital market. Suppose John Smith has $5,000 now available to support the consumption in periods 0 (now) and 1 (next year). John wants to spend the equal amount this year and next. Please answer the following questions.

How much will John Smith consume this period and next?

Reference no: EM133056146

Questions Cloud

Find the annual after-tax cash flow : George owns 100% of equity of a company. If George works 6 hours per day, the company's EBIT will be 335,000 dollars per year, in perpetuity.
Discuss privacy versus convenience : Discuss privacy versus convenience. Does Google place cookies on your computer or other devices? Does Google have information about your actual location?
Tax office relating to businesses tax obligations : Provide a link to the Australian Tax Office relating to businesses tax obligations.
Differences in ethics-organizational policies and laws : Explain the differences between ethics, organizational policies, and laws. Analyze how the new shopping cart software upholds ethical trends in consumer privacy
Support the consumption in periods : As a financial analyst at Citibank, you want to help your clients to determine how to the income and consumption over this year and next.
Prepare general journal entry to record the monthly payroll : Of the total earnings, $31,118.46 was for sales salaries and $8,281.54 was for office salaries. Prepare a general journal entry to record the monthly payroll
Calculate the value of the relevant test statistic : A large city installed LED streetlights, in part, to help reduce crime in particular areas. The city collected the number of property crimes along nine randomly
How developing nursing informatics competencies : Explain how developing nursing informatics competencies would increase your effectiveness as a nurse.
What is the contribution margin ratio : QUESTION - Its Company has provided the following information: Fixed costs per month $20,000. What is the contribution margin ratio

Reviews

Write a Review

Finance Basics Questions & Answers

  How much will each annual payment be

Big Brothers, Inc. borrows $169,634 from the bank at 19.49 percent per year, compounded annually, to purchase the new machinery.

  What is the present value of the savings

What is the present value of the savings between a thirty-year mortgage that has an interest rate of 9% and one that has an interest rate of10%?

  Incremental cash flow related to working capital

To estimate the increase in working capital, analysts estimate the ratio of cash and cash-equivalents to revenue to be 0.03 and the ratios of receivables, inventories, and payables to revenue to be 0.05, 0.10, and 0.04, respectively, in the same i..

  What is the break-even ebit

What is the break-even EBIT? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

  Percent to four decimal places

Calculate the return, in percent to four decimal places, of the stock market for June 4.

  What are corporate control events what are the restrictions

what are corporate control events? what are the restrictions faced by corporate insiders during corporate control

  Executive capital budgeting committee

You intend to submit the project to the executive capital budgeting committee. Should the $25,000 fee be counted as part of the project costs?

  Prepare contribution format segmented income statements

Prepare contribution format segmented income statements for the total company broken down between sales territories.

  Calculate the integral of given function using monte-carlo

Use Monte Carlo to calculate the integral of the function Exp( x ) for 0 .

  How many shares ofabc stock will one share of def receive

ABC is acquiring DEF in an all stock deal. The deal is subject to a collar such that DEF shareholders will receive 1.5 shares ofABC if ABC's average stock price

  Find accounts payable balance

At the end of the year, the accounts payable balance was: $19,193

  Student at the university of tennessee

While Mary Corens was a student at the University of Tennessee, she borrowed $16,000 in student loans at an annual interest rate

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