Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the r
1 answer:
The original investment that Rob made was $4,981 with the rate of interest of 11% per year for 18 years.
<h3 /><h3>What do you mean by present value?</h3>Present value (PV) refers to the current price of a future amount of money or move of cash flows given a certain price of return. Future cash flows are discounted at the discount price, and the better the discount price, the lower the present price of the future cash flows.
As per the given information:
A: $32,595
P: ?
r: 11%
n = 18 years
Therefore, The original investment that Rob made was $4,981 with a rate of interest of 11% per year for 18 years.
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Answer:
The change in checking deposit is equal to $22,727.27.
Explanation:
An amount of $2,500 is deposited in a checking account.
The required reserve ratio is 0.11 or 11%.
A part of this deposit will go to the required reserve and the rest will be added in the checking deposit of the bank.
The change in the checking deposits will be
= amount deposited
=
= $22,727.27