The Bull Spread strategy benefits from price movement to the upside and provides some protection if the security price falls. Thus, the correct answer is Bull Spread.
What is Bull Spread?A bull spread is a bullish vertical spread options strategy meant to profit from a slight rise in the underlying security's price. Because of put-call parity, a bull spread can be built using either put or call options. It is a bull call spread when built with calls. A bull put spread is formed by employing puts. A bull put spread is created by selling higher strike put options and purchasing the equivalent amount of lower strike put options on the same underlying securities with the same expiration date. The options trader adopting this approach believes that the underlying security's price rises sufficiently to make the written put options worthless.
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let's fast forward 3 years to 2007-04-01. using the original taylor rule where the equilibrium real rate of interest is estimated to be 2% and the target inflation rate is 2%, what is the federal funds rate implied by the taylor rule?
The original Taylor rule where the equilibrium, a steady state of 2%, which equates to a rate of about 2%. But that's only part of the equation. The output should also be considered.
The Taylor Rule is an interest rate forecasting model devised by renowned economist John Taylor in 1992 and described in his 1993 study Discretion Versus Policy Rules in Practice.
The Taylor Rule allows the Federal Reserve to raise interest rates if inflation is above target or if gross domestic product (GDP) growth is too high and ahead of potential. suggesting that it should. It also suggests the Fed should cut rates if inflation is below target or if GDP growth is too low and below potential.
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the vp of product development led a of specialists in sales and marketing, manufacturing, and research and development to figure out how to bring new products to market faster in the united states.
Cross-Functional Team. The VP of product development led a _ Cross-Functional Team_ of specialists in sales and marketing, manufacturing, and research and development to figure out how to bring new products to market faster in the United States.
A Cross-Functional Team_ comprising experts in manufacturing, sales and marketing, and research and development worked under the direction of the VP of product development to determine how to bring new goods to market in the US more quickly.
Alternative D: Virtual Team
The superintendent of the school district oversaw a "Virtual Team" comprising principals and teachers, school counselors and librarians, parents, and professors of education programs at institutions all throughout the state to create a new curriculum that addressed state criteria. Team members frequently had videoconferences and used email to communicate ideas.
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You switch the positions of two items on your menu. Chicken tenders sales drop from $800 to $600. Food cost for chicken tenders is 25%. Cheeseburger sales rise from $500 to $700. Food cost for cheeseburgers is 20%. Was this a good move?.
Answer: a) Yes, gross margin increased
Explanation:
an insured who has policies with several companies covering the same insurable interest has multiple insurance coverage. true false
The aforementioned statement is true if an insured has numerous insurance policies covering the same insurance policy.
A Top 100 firm is what?The Fortune 100 is a ranking of the top 100 American businesses in the Top 500, a ranking of the 500 biggest publicly and privately owned companies in the nation that is published by Fortune global 500 list. Ranking both public and private businesses that submit annual income numbers to a government agency, Fortune compiles the list.
What business has ever been the richest?But really the Dutch East Asia Company was the most lucrative business ever (VOC). Howmuch.net claims that in 1637, its value soared to an astounding $8.28 trillion.
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a. suppose there is a negative demand shock, and demand unexpectedly falls from a medium level of demand to a low level of demand. assuming fixed prices, what will happen to the firm's inventory of computers?
The company’s inventory will rise by 200 PCs per week happen to the firm’s inventory of computers
• The company's inventory will remain unchanged.
• The company's inventory will be reduced by 150 PCs every week.
• The company's inventory will grow by 250 PCs every week.
• The firm's inventory will grow by 200 percent.
What happens to the businesses inventory of computers if there is a negative demand shock and prices are inflexible?Assume that in the short run, prices are sticky. Which of the following best reflects the economy’s response to a negative demand shock? Firms’ stockpiles will rise, forcing them to reduce output. In the end, real GDP will fall and unemployment will rise.
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the average price of a gallon of gas in 2018 increased $0.30 (12.4 percent) from $2.42 in 2017 to $2.72 in 2018. required: 1. conduct a horizontal analysis by calculating the year-over-year changes in each line item, expressed in dollars and in percentages for the income statement of fawkes manufacturing for the year ended december 31, 2018 (amounts in billions). 2-a. conduct a vertical analysis by expressing each line as a percentage of total revenues. 2-b. excluding income tax and other operating costs, did fawkes earn more gross profit per dollar of revenue in 2018 compared to 2017?
2a). Required: vertical analysis by expressing each line as a percentage of total revenues
Percentage (%) = (Amount of line item ÷ Revenue) x 100
Costs of Purchased :2018 = ( $115 ÷ $201) x 100 = 57.21%
Costs of Purchased :2017 = ( $91 ÷ $170) x 100 = 53.53%
Gross Profit : 2018 = ( $86 ÷ $201) x 100 = 42.79%
Gross Profit : 2017 = ( $79 ÷ $170) x 100 = 46.47%
2b). As it is observed from Vertical Analysis Gross Profit earned in 2018, $86 is only 42.79% of Revenue and Gross Profit earned in 2017, $79 is 46.47% of Revenue. It means the gross profit of 42.79% per dollar of revenue in 2018 is less than as compared to 2017 gross profit of 46.47% per dollar of revenue.
In business and accounting, internet earnings (additionally general complete earnings, internet earnings, Net income, bottom line, sales income, or credit score income) is an entity's profits minus a fee of goods offered, expenses, depreciation and amortization, interest, and taxes for an accounting duration.
Its miles are computed as the residual of all revenues and profits much less all prices and losses for the duration and has additionally been described because of the net increase in shareholders' fairness that outcomes from an agency's operations. It is distinctive from gross earnings, which simplest deducts the cost of goods bought from revenue.
Internet profits are normally calculated according to annum, for each fiscal yr. The gadgets deducted will generally include tax rate, financing rate (hobby cost), and minority interest. Likewise, favored stock dividends can be subtracted too, though they're no longer a cost.
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You had a job offer from two companies, company a and company b. company a, with 28,000 employees, offers a starting salary of $45,000 and a raise of $1,000 every year. company b, with 10,500 employees, offers a starting salary of $40,000 and a raise of 3% every year.
a. After how many years would Janine's salary be the same with both companies?
b. What would that salary be?
The equation in mathematics is used to help you solve the problem. With equations, you can solve problems easily. Equation, in mathematics, is the form of the values that you want to find.
Assume the number of years be y
Then, the equation will be:
Company A = $45,000 + ($1,000 × y)
Company A = $45,000 + $1,000y
Company B = $40,000 + ($1,200 × y)
Company B = $40,000 + $1,200y
Collect them to become one equation:
$45,000 + $1,000y = $40,000 + $1,200y
Collect like terms
$45,000 - $40,000 = $1,200y- $1,000y
5000y = 200
y = 5000/200
y = 25.
The number of years will be 25 years
b. The salary will be:
= $45,000 + $1,000y
= $45,000 + $1,000 (25)
= $45,000 + $25,000y
= $70,000
The salary is $70,000
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Malcolm said that he has no choice but to go ahead with the website changes. This suggests his power is lessened due to a low level of.
Malcolm said that he has no choice but to go ahead with the website changes. This suggests his power is lessened due to a low level visibility.
Visibility is a measure of the distance at which an object or light can be clearly seen. In meteorology, it depends on the clarity of the surrounding air, so it does not change regardless of ambient brightness or time of day.
Why is visibility important?It helps you introduce yourself to a wider audience. Build brand awareness so people know who you are and how you support them. Establish your credibility and expertise.
What is visibility restriction?Reduced visibility significantly reduces visibility (from the driver's seat) at distances where objects and lights are clearly visible. Reasons for poor visibility can be tall buildings, large trucks on the road, trees, curves and other objects on the road that limit the driver's view
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which of the following would constitute depreciation, as economists use the term? a. using some of your savings to buy a car b. a gm shareholder selling some of her stock c. inventories of firms decreasing due to an increase in sales d. a tax accountant s knowledge of the tax code becoming outdated as new tax laws are passed
Inventory levels rise if production exceeds sales and falls if sales exceed production.
How do sales affect inventory?Normally, the size of a company's inventory fluctuates with its sales. “It is expected that inventories will increase proportionately to increases in sales, but when sales decrease, inventories should also adjust downward,” adds Dany Couillard, Director, Business Restructuring, BDC.Reduced inventory allows you to adapt and adjust to rapid market and industry changes, like short product lifecycles. Reduced inventory saves your business carrying costs, storage costs, and transportation costs between warehouse facilities.Your inventory value can also increase if the supply of your product in the market decreases while demand remains relatively steady. Commodities are one example; if you have a warehouse full of coffee and weather ruins the coffee crop, the value of your inventory will increase with the market price.
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sales, marketing, and manufacturing are all types of software typically used by a(n) . a. enterprise b. small business c. individual d. power user
Sales, marketing, and manufacturing are all types of software typically used by power user.
What is meant by the phrase "marketing"?Marketing is the process of creating, disseminating, providing, and exchanging products and services that are beneficial to customers, clients, business partners, and society as a whole.
Why does marketing serve a purpose?Consumer engagement and aid in their decision to buy your products or services are two advantages of marketing for your business. Your business plan's marketing strategy, which is a key element, also helps in establishing and maintaining demand, relevance, reputation, competition, etc.
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which of the following are characteristics of extreme programming? group of answer choices teams are unstructured. a customer representative is included on the team. pair programming is encouraged. the project owner represents customers' interests. work is organized into sprints of 7-30 days. during planning, projects trade off development speed against code quality.
Dynamically changing software requirements, using a small, collocated extended development team, and utilizing technology that makes automated unit and functional tests possible are some of XP's key qualities extreme programming.
What aspects of extreme programming are true?One of the software development approaches known as agile methodologies is extreme programming.XP is focused on beliefs, principles, and practices with the goal of empowering small to mid-sized teams to produce high-quality software and adapt to changing requirements.
Which of the following traits does extreme programming not have?Verified by an expert Shared code and responsibility, option (c), is not an extreme programming technique.
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a union contract stipulation that an employer will not resist unions attempting to become established elsewhere in the company is called a(n) provision.
A union contract stipulation that an employer will not resist unions attempting to become established elsewhere in the company is called a neutrality provision.
What are the neutrality provision?The law of neutrality can be described as the body of rules as well as principles which help in the process of regulating the legal relations of neutrality.
It should be noted that the law of neutrality obliges neutral States so as to be able to bring the ncecessary treatment on all belligerent States impartially and to draw back from the provision of the military as well as the assistance to belligerents.
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black company has net credit sales of $500,000, an asset turnover ratio of 3, an inventory turnover ratio of 5, and a receivables turnover ratio of 6. what is the average collection period?
black company has net credit sales of $500,000, an asset turnover ratio of 3, an inventory turnover ratio of 5, and a receivables turnover ratio of 6. So 60.8 days is the average collection period.
Why is average collection period important?The average series length or DSO of a business is imperative for its growth. If a company persistently has excessive ACP, there is a trouble with its bills receivable and series process. By automating them with HighRadius Autonomous Receivables, agencies can notably improve their order to money cycle.
Average series duration is calculated by dividing a company's common bills receivable stability by means of its net deposit sales for a particular period, then multiplying the quotient with the aid of 365 days.
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https://brainly.com/question/29453530#SPJ4the ghirardi company's fixed-asset turnover ratio was 5.0 and average fixed assets employed during the year were $2,040,000. ghirardi's net sales for the year were:
The Ghirardi company's fixed-asset turnover ratio was 5.0 and the average fixed assets employed during the year were $2,040,000. Ghirardi's net sales for the year were:Ghirardi's net sales
What are Ghirardi's net sales?Generally, To calculate Ghirardi's net sales for the year, you can use the following formula:
Net Sales = Fixed-Asset Turnover Ratio * Average Fixed Assets Employed
Plugging in the given values, we get:
Net Sales = 5.0 * $2,040,000 = $10,200,000
So, Ghirardi's net sales for the year were $10,200,000.
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a business owner hires somebody to burn their business in hopes of collecting insurance money. this type of arson is known as:
A business owner hires somebody to burn their business in hopes of collecting insurance money. this type of arson is known as Arson fraud.
What is Arson fraud? Property owners who intentionally set their own property on fire or otherwise cause damage to it do so in order to defraud their insurance providers.A felony can be brought against anyone who knowingly makes a false statement or misrepresents a significant fact in order to receive or reject any benefit or payment or to help another person receive or reject any benefit or payment.Details regarding the insured, the property, body shops, and healthcare providers on the claim may contain indications of insurance fraud.
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In an election debate, two candidates for governor are debating about whether to raise the general sales tax from 5 to 7 percent. candidate a argues that this would increase tax revenues, enabling the state to maintain essential services. candidate b argues that the tax would hurt retailers and consumers, slowing down the economy so much that it would decrease tax revenues too. what assumptions must the candidates be making in order to justify their position?
a. Candidate A assumes that the price effect would be larger than the quantity effect. b. Candidate B assumes that the price effect would be larger than the quantity effect. c. Candidate A assumes that the quantity effect would be larger than the price effect. d. Candidate B assumes that the quantity effect would be exactly the same as the price effect.
A. Candidate A assumes that the price effect would be larger than the quantity effect. and B. Candidate B assumes that the price effect would be larger than the quantity effect.
What is price effect?Price effect refers to the changes in demand resulting from changes in price. When the price of a good or service increases, demand typically decreases, while a decrease in price usually increases demand. This phenomenon is studied in economics and is a major factor in pricing decisions. Many companies will use price effects to their advantage, such as setting a higher initial price to create a “premium” product or using discounts to generate more sales. Factors such as availability, consumer preferences, and competition can also influence price effects. Ultimately, businesses must consider price effect when making pricing decisions in order to maximize their profits.
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If a business decides to act outside of the prevailing ethical norms of that community.
The area of ethics that Ingrid's opinions reflect is normative ethics. if a business chooses to act contrary to the recognized ethical standards in the community.
What is Normative ethics?The field of moral philosophy described as normative ethics is focused with rules for what is morally right and wrong. It comprises the formation of moral rules that directly impact the correct behavior of individuals, communities, and societal institutions. It is frequently contrasted with applied ethics, or the implementation of normative ethics to practical issues, and theoretical ethics, or basic level, which is interested in the nature rather than the substance of ethical theories and moral judgements.
Normative ethics is the discipline of philosophical ethics that looks at issues relating to how one should behave morally. It is the study of ethical behavior.
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additional data obtained from the income statement and from an examination of the accounts in the ledger for 20y8 are as follows: a. net income, $250,000. b. depreciation reported on the income statement, $135,000. c. equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. the mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. f. cash dividends declared and paid, $45,000.
For the Year Ended December 31,20Y8
Cash flows from operating activities:
Net income 250000
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation 135000
Changes in current operating assets and liabilities:
Decrease in accounts receivable 20000
Increase in inventories -70000
Increase in Prepaid expenses -10000
Increase in accounts payable 25000
Net cash flow from operating activities 350000
Cash flows from investing activities:
Cash paid for equipment -420000
Net cash flow used for investing activities -420000
Cash flows from financing activities:
Cash received from the sale of common stock of 600000
Cash paid for dividends -45000
Cash paid to retire mortgage note payable -500000
Net cash flow used for financing activities 55000
Net decrease in cash -15000
Cash balance, January 1,20Y8 110000
Cash balance, December 31,20Y8 95000
In accountancy, depreciation is a term that refers to two aspects of the identical concept: first, the actual lower honest cost of an asset, including the lower price of the factory device every 12 months as it is used and put on, and 2nd, the allocation in accounting statements of the original price of the property to intervals.
Strategies of computing depreciation, and the durations over which properties are depreciated, can also range among asset sorts within the same business and may vary for tax functions. these may be certain through regulation or accounting standards, which may additionally range by USA. There are several fashionable methods of computing depreciation price, which include constant percentage, direct line, and declining balance strategies. The depreciation fee typically starts offevolved while the asset is placed in the provider.
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So, if work ethic lives inside of us, just as with other values (e.g., pride, optimism), how does work ethic reveal itself in your behaviors? How is it demonstrated? How can you act it out?
Answer:
Explanation:
If you have a strong work ethic, you likely possess traits like dependability, respectfulness, responsibility, productivity and collaboration. For example, if you find work important and worthy of your best efforts, you will do things like show up for work on time and complete tasks by their due date. It can be demonstrated through your integrity. Show it through your actions, and by demonstrating you can get things done on time, and the right way, and while still respecting your co-workers.
is the president and congress currently running expansionary fiscal policy or contractionary fiscal policy?
Since 2009, the American government has pursued a policy of expansion. The Great Recession, which began in December 2007 and lasted until June 2009, prompted the expansionary strategy, which was mostly implemented in reaction.
What is fiscal policy?Government spending and taxation are used in fiscal policy to gradually alter the course of the economy. Automatic stabilizers are an example of a passive fiscal policy since once the system is in place, Congress is not required to take any more action. On the other hand, discretionary fiscal policy is an active fiscal strategy that employs expansionary or contractionary actions to hasten or hasten the pace of the economy.
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alayna purchases a laptop for $290. sales tax is 8.75% in orange county. how much sales tax does she pay? (hint: round money to the nearest cent!)
Alayna purchases a laptop for $290. sales tax is 8.75% in orange county. much sales tax does she pay: $25.375, 2088.87
Definition: A purchase means to take possession of a given asset, belongings, item, or right via paying a predetermined amount of money for the transaction to be completed effectively. In different phrases, it's an exchange of cash for a selected appropriate carrier.
And you have to use "purchase" when you need a noun shape, as in You made a clever buy whilst you got gas before the rate went up. In summary, attempt to use "buy" for simple actions, and "buy" for more formal exchanges of cash for items.
Instance:-
Stationery purchased by means of a stationer is called “Purchases”cloth bought by means of a fabric merchant is known as “buy”Cement bought by using a cement dealer is called “Purchases”Learn more about Purchases here:
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a market consists of ten similar suppliers that are making the same supply decisions. to find the market supply of these ten suppliers, you:
Ten comparable vendors are participating in the market and submitting identical bids. Multiplying his one particular offer of the provider by 10 will give you the market his offer of these 10 suppliers will serve.
The market is made up of a large number of buyers and sellers who deal in certain commodities like wheat, copper, and financial equities. The price of the current market cannot be greatly influenced by a single buyer or seller. Instead of having a single market price, there are multiple buyers and sellers trading at different prices.
Market supply and demand. A market is a place where buyers and sellers can come together to exchange goods and services . A marketplace might be actual, like a physical retailer, or digital, like an online retailer. Other instances
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The correct question is :
a market consists of ten similar suppliers that are making the same supply decisions. to find the market supply of these ten suppliers, you: find the average quantity produced by the ten suppliers. take the individual supply of one supplier. take one-tenth of the individual supply of each supplier and add it up. multiply the individual supply of one of the suppliers by ten.
according to the article, front porches represent a time and place where private interests could be weighed against public interests in a relaxed atmosphere where formal relationships and the stress of busyness were absent. A. True or B. False
A. True
The front porch idea allows the managers to take their social, charitable, and financial obligations seriously.
It will enable them to collaborate in order to achieve the highest standards based on the engagement principles and input from the people they serve.
They put themselves through a test, evaluate their results, acknowledge their triumphs, and take corrective action if necessary.
Everyone is able to see how well they are reaching their vision thanks to their accountability method. And establishing a unified culture is the first step.
Additionally, it aids students in upholding moral principles including respecting other people's choices, embracing ideas about people with different abilities, whole-person wellbeing, and cultivating an environment of kindness.
-So, from above context, given statement is true to the context.
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if you need a stock with specific characteristics, like a high dividend yield, where would you start your search?
Answer: A stock screener
The financial ratio known as "dividend yield" assesses the amount of cash dividends paid to shareholders in relation to the share price on the market. It is calculated by multiplying the outcome by 100 and dividing the dividend per share by the market price per share. Dividend yield is the annual dividend payments made by a stock to its shareholders as a proportion of the firm's market value.
This figure tells you how much income you may anticipate from a company in the future based on the price you could pay for it today, assuming the dividend stays the same.
The dividend yield, for instance, is 5% if a stock now trades for $100 per share and the annualized dividend paid by the company is $5 per share.
Divide the annualized dividend by the share price to get the yield.
$5 divided by $100 in this instance equals 5%.
Mainly because there is an opportunity to choose a dividend paying firm with more information on dividend payout, dividend yield, etc.
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companies such as ebay and hotel that sell products and services directly to final buyers exclusively over the internet are known as
companies such as eBay and hotels that sell products and services directly to final buyers exclusively over the internet are known as e-tailers.
e-tailersE-commerce refers to the process of selling retail products through the internet. It promotes the idea of a business-to-business (B to B) transaction. With the emergence of a wide selection of e-tailing solutions, it has been much easier for online company experts to run their businesses in the most advantageous way.
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sheridan company purchased merchandise with an invoice price of 2400 and credit terms of 2/10, n/20. assuming a 360-day year what is the implied annual interest rate inherent
36% is the implicit yearly interest rate.By dividing the forward price by the spot price, one may determine the implied rate.
How would you determine the implicit yearly interest rate?By dividing the forward price by the spot price, one may determine the implied rate. Increase that ratio by the square of the number of days left until the forward contract expires, divided by one. Next, take away 1.
Explanation:
If payment is made no later than 10 days following the sale, the business saves $100 (i.e., $1000 x 10%). The business also has a 30-day payment deadline following the transaction.
Therefore, if payment is made 20 days prior to the final due date, the corporation will save $48.
Employ the interest formula: Interest is calculated as follows: Principal x Interest Rate x Time
$2400 x Interest Rate x (30-10)/360 x $48 x Interest Rate = [360/(30-10)] x $2400
Interest Rate equals [18] times 0.02 Interest Rate equals 0.36 36% equals 0.36 times 100.
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the situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
the situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as a liquidity trap
A zero bound is an expansionary monetary policy tool that allows central banks to cut short-term interest rates to zero when needed to stimulate the economy. Central banks forced to adopt these policies must also use other often unconventional stimulus measures to revive the economy.
What is a liquidity trap?A liquidity trap occurs when consumers choose to hoard cash rather than invest in higher-yielding assets due to poor economic prospects. Liquidity traps are not just limited to fixed income, they affect other areas of the economy as well. Consumers will spend less and businesses may be less likely to hire employees. A liquidity trap is a situation described in Keynesian economics in which ``liquidity preferences change in the sense that most people prefer to hold cash to liabilities after interest rates fall to a certain level. can become virtually absolute.” such a low interest rate.
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at the start of the current year, sbc corporation purchased 30% of sky tech incorporated for $45 million. at the time of purchase, the carrying value of sky tech's net assets was $75 million. the fair value of sky tech's depreciable assets was $15 million in excess of their book value. for this year, sky tech reported a net income of $75 million and declared and paid $15 million in dividends. the amount of purchased goodwill is:
The amount of the purchased goodwill is $4,500,000.
What is a goodwill?When ownership of a business is transferred as a continuing concern, goodwill is a recognized intangible asset in accounting. It stands for the intrinsic worth of a company's capacity to keep customers as clients when that value cannot otherwise be attributed to elements like brand awareness, contractual obligations, or other particulars. Goodwill cannot be developed by oneself; it can only be acknowledged through an acquisition. Since it cannot be seen or touched, it is categorized as an intangible asset on the balance sheet. Since goodwill is seen as having an infinite useful life, it is never depreciated under US GAAP and IFRS. Instead, it is up to management to assess goodwill annually and decide if an impairment is necessary.
Fair value exceed book value 15,000,000
SBC proportion of Sky Tech 30%
Amount of purchased goodwill 4,500,000
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if the domestic price in canada is $0.75 and the domestic price in the united states is $1.00, what will canadian companies do?
If the domestic price ,produce more than what Canadians will purchase and export the extra to the US.
How is the domestic price ratio calculated?The domestic resource cost ratio (DRC), which is expressed as a percentage, measures how much a project's domestic net inputs cost relative to its traded net outputs. A DRC value below (above) one is thought to signify the existence of net benefits (negative).
What is considered a trade?Trade refers to the willingly exchange of goods or services between economic actors. Because exchanges are voluntary, trade is frequently viewed as being advantageous to both parties. Trading in the financial sector refers to the buying and selling of securities or other assets.
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pablo invests 4000 usd in an account that offers 4% simple interest per year. after 12 years, how much is his investment worth in usd?
The amount Pablo has after 12 years is $5920
Simple interestSimple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.
Plain Interest = P x I x N
where,
P=principle
L = Daily interest rate
N = Days between payments
Explanation:
Given,
Annual interest rate = 4%
Interest in one year =[tex]\frac{4}{100}[/tex] x 4000
= 160
Interest in 12 years = 160 x 12
= 1920
Therefore the amount Pablo will have in 12 years is $5920
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