The pig problem-when should the pig be sold

Assignment Help Financial Management

Reference no: EM131848130

1. The Five Step Method

a. Ask the question

b. Select the modeling approach

c. formulate the model

d. solve the model

e. answer the question

The Pig Problem. A pig weighing 200 pounds gains 5 pounds per day and costs 45 cents a day to keep. The mortket price for pigs is 65 cents per pound, but is falling 1 cent per day. When should the pig be sold?

2. Use formula P = P () (1 + R/k)^ kt where r= interest rate k= compounding frequency per year t= time in yeras p() = initial amount of money

A $50 Series EE U.S. Government Bond compounding quarterly was issued on 5-16-01 with a P () = present value = initial amount of $25.

If the value was $38 on 8-23-10, what is the interest rate?

When will the bond be valued at $50?

Estimate the doubling time with the Rule of 72.

Reference no: EM131848130

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