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A You purchased an investment which in 5 years doubled. Whatrate of return did y

ID: 2662012 • Letter: A

Question

A You purchased an investment which in 5 years doubled. Whatrate of return did you earn over these five years? B A share of IBM stock is purchased by anindividual investor for $75 and later sold to another investor for$125. Who profits from this sale?
A. IBM.
B. The first investor.
C. The second investor.
D. Profit is split between IBM and the investor. C Primary markets can be distinguished fromsecondary markets in that primary markets sell:
A. lower valued shares.
B. previously unsold shares.
C. only the shares of large firms.
D. shares with greater profit potential. D Given a set future value, which of the following willcontribute to a lower present value?
A. Higher discount rate
B. Fewer time periods
C. Less frequent discounting
D. Lower discount factor E An amortizing loan is one in which:
A. payments are made monthly.
B. accrued interest is paid regularly.
C. the maturity of the loan is known.
D. the principal balance is reduced with each payment. You purchased an investment which in 5 years doubled. Whatrate of return did you earn over these five years? B A share of IBM stock is purchased by anindividual investor for $75 and later sold to another investor for$125. Who profits from this sale?
A. IBM.
B. The first investor.
C. The second investor.
D. Profit is split between IBM and the investor. C C Primary markets can be distinguished fromsecondary markets in that primary markets sell:
A. lower valued shares.
B. previously unsold shares.
C. only the shares of large firms.
D. shares with greater profit potential. D Given a set future value, which of the following willcontribute to a lower present value?
A. Higher discount rate
B. Fewer time periods
C. Less frequent discounting
D. Lower discount factor E An amortizing loan is one in which:
A. payments are made monthly.
B. accrued interest is paid regularly.
C. the maturity of the loan is known.
D. the principal balance is reduced with each payment. E An amortizing loan is one in which:
A. payments are made monthly.
B. accrued interest is paid regularly.
C. the maturity of the loan is known.
D. the principal balance is reduced with each payment.

Explanation / Answer

            Ashare of IBM stock is purchased by an individual investor for $75and later sold to another investor for $125. Who profits fromthis sale?

         PrimaryMarkets can be distinguished from secondary markets in that primarymarkets sell:

         Given aset future value, which of the following will contribute to a lowerpresent value?

            AnAmortizing loan is one in which:

               (D)The Principal balance is reduced with each payment.

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