072500 2012 efe58f486ffb8d.JPG mail google com sk gmail. y Sally has enough mone

Question

072500 2012 efe58f486ffb8d.JPG mail google com sk gmail. y Sally has enough money to buy 20 Big Macs at $4.00 each. If she choow to invest her monvey instead and wants to be able to buy 22 Big Macs next year, what PRECISE ot earn in order to 2.5%? TRUE nominal rate would Sally have to be able to purchase 22 Big Macs next year if she expects the price of Big Macs to go up by A) 12.50% D) 12.75% B) 7.32% 7.50% s promising to double 10) If an investment advisor promises to provide you with an annual returm your annual return would be approximately% your money in approximately years; if, however, it actually takes 16 yearst - D) 10.3,45 50A) 7.0, 12.5 B) 4.5; 11.1 C) 4.51;5.1

Explanation / Answer

8. The rate of return that has to be earned = 22*4*1.025/20*4 -1 = 12.75%

10. 2x = x*1.07^n

n = log2/log1.07 ~ 10.3..........first blank

2x = x*(1+r)16

r ~ 4.5%

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.