Microsoft's stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $10,000 invested in Microsoft at its IPO price had been worth $600,000 (6000% of the IPO price) after exactly 13 years. What interest rate, compounded annually, does this represent? (Round your answer to two decimal places.)

Answers

Answer 1
Answer:

Answer:

37.02%

Explanation:

we need to calculate r in the following equation: FV = PV (1 + r)ⁿ

  • FV = $600,000
  • PV = $10,000
  • n = 13

$600,000 = $10,000 (1  + r)¹³

$600,000 / $10,000 = (1  + r)¹³

60 = (1  + r)¹³

¹³√60 = 1 + r

1.3702 = 1 + r

r = 1.3702 - 1 = 0.3702 or 37.02%

*to determine ¹³√60 in a non-scientific calculator, find 60∧(1/13). Determine 1/13 first, add to the calculator's memory, then 60∧MR (memory recovery)

Answer 2
Answer:

Final answer:

The annual compounded interest rate that represents a growth from $10,000 to $600,000 over 13 years is approximately 37.49% when rounded to two decimal places.

Explanation:

To find the annual compounded interest rate, we can use the formula for compound interest, which is A = P(1 + r)n, where A is the amount of money accumulated after n years, including interest, P is the principal amount, r is the annual interest rate (as a decimal), and n is the number of years the money is invested. In this case, the final amount A is $600,000, the principal amount P is $10,000, and the number of years n is 13.

The equation can be rearranged to solve for r:

600,000 = 10,000(1 + r)13

(1 + r)13 = 600,000 / 10,000

(1 + r)13 = 60

Now, we take the 13th root of 60 to find (1 + r), and then subtract 1 to find the rate:

1 + r = 601/13

r = 601/13 - 1

Using a calculator, we find that r ≈ 0.3749 or 37.49% when rounded to two decimal places.

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Answers

Answer: D

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Answers

Answer:

Option A. The fourth step that is occasionally required to repair damaged relationships is to change the behavior that caused the problem.

Explanation:

When having the intention to repair a relationship that has been damaged, there are several steps that the person can take in order to achieve the goal. The first step to consider is whether the relationship is worth saving or not, as there are some occasions in which maybe the best thing for both people is to continue in separate ways. If the person decides that the relationship is worth saving, then the second step needs to be to communicate in an honest and open way the problem to the other person involved, and after that the person needs to look at the problem from the other person's point of view in order to be more empathetic about the whole situation. This is when the fourth step comes in action, after discussing the issue, there needs to be a change in the behavior that caused it, so that the relationship can move forwards and heal properly.

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How do lower prices tend to affect demand

Answers

The lower prices tend to affect the demand, it will increase the demand.  

Further Explanation:

Equilibrium price:

The equilibrium price is the price where the demand and supply are equal at a particular price. If the price of the good increases, the demand for the product will decrease. If the price of the good decreases, the demand for the product will increase.  

As the price of the good is lower, the good is available in less amount of money. The customer has a fixed income, now they can purchase the more quantity of good with his fixed income. As the price of the good is more, the good is available in more amount of money. The customer has a fixed income, now they can purchase the less quantity of good with his fixed income.  

Let us take an example, a pen costs $5, in the market. A customer has a $50 fixed income, he can purchase 10 units of pen from the market. Let us assume a pen cost will decrease from $5 to $2, in the market. A customer has the same $50 fixed income, now he can purchase 25 units of a pen from the market.  

Therefore, the price and demand of the goods have an inverse relationship with each other.  

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Answer details:

Grade: Middle School

Subject: Economics  

Chapter: Demand  

Keywords: The lower prices, tend to affect, demand, increase, equilibrium price, a pen costs $5, increase, decrease, market, inversely, less amount of money.  

When the price is lower, with a condition other factors remain equal, the more people would buy the product. That means the demand would increase. When the price increases, fewer people would buy the products, means the demand would decrease.

Further explanation

In the market, supply and demand always shift until the market finds the equilibrium price. Equilibrium is the condition when demand meets supply and the price stabilize. Multiple factors can affect both supply and demand This factors included consumer preferences, product substitutes, the price of the complementary product, production cost, supply chain and the number of competitors.

The law of demand explains when the price goes up, people will less likely to buy the product, it means that the demand will decreases. In other words, the higher the price, the lower the quantity demanded. On the other hand, the law of supply stated when the price of goods increase, so the supply will increase too. It because by selling at a higher price will increase revenue.

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Keywords: demand curve, prices, supply, demand, equilibrium, law of demand and supply

When Terry retired from​ Caterpillar, he received a​ pension: Caterpillar would pay him​ $50,000 the first year he was​ retired, with the amount increasing by 5 percent each year thereafter. If inflation turned out to be 2 percent each​ year, what would happen to the real value of​ Terry's pension? A. It would decrease each year by 5 percent. B. It would increase each year by 3 percent. C. It would increase each year by 5 percent. D. It would decrease each year by 3 percent.

Answers

Answer:

B. It would increase each year by 3 percent.

Explanation:

Given

Pension = $50,000 in first year

Increment = 5%

Inflation = 2%

Inflation doesn't only affect the value of an investment, it also influence the liabilities of a pension fund.

Consider a pension plan which gives a worker a benefit based on final average salary; A slight increase in the inflation would reduce the worker's real benefits in the years after retirement.

So, instead of Terry's pension to increase by 5% each year,

It'll increase by 3%

This is calculated by subtracting the inflation rate from the real increment rate.

5% - 2% = 3%

Whats the main advantage of establishing per item prices on an order and pricing form

Answers

The main advantage of establishing per item prices on an order and pricing form is so that the customer can see and estimate well how they can budget on how much they would order or spend for the product they want to order.

Sam, an American citizen, prepares meals for his family at home. Ellen, a Canadian citizen, commutes to the U.S. to help prepare meals at a restaurant in Idaho. Whose value of services preparing meals is included in U.S. GDP?

Answers

Answer:

Ellen services is included in U.S. GDP

Explanation:

Domestic work that is not paid is not included in the calculation of a country's GDP. That's the case with Sam household works.

All the compensation to employees are considered in GPD computation, it is not important the nationality of the employee, but the work must be done in the U.S. and that's the case with Ellen.