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lapo4ka [179]
2 years ago
12

2. Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings. If the estimated r

ate of return on the trust fund is 8%?
Business
1 answer:
Shkiper50 [21]2 years ago
3 0

With compound interest on a principal of $5,000.00 at a rate of 8% per year compounded 1 time per year over 12 years is $12,590.85.

<h3>Compound interest</h3>

Given Data

  • Principal = $5,000
  • Time = 12 years
  • Rate = 8%

Assuming a compounded interest approach

A = P + I where

P (principal) = $5,000.00

I (interest) = $7,590.85

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 8/100

r = 0.08 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 5,000.00(1 + 0.08/1)(1)(12)

A = 5,000.00(1 + 0.08)(12)

A = $12,590.85

Learn more about compound interest here:

brainly.com/question/24924853

#SPJ1

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Answer: The correct answer is "a. the bulk of the public debt is owned by U.S. citizens and institutions.".

Explanation: To say that "the U.S. public debt is mostly held internally" is to say that:<u> the bulk of the public debt is owned by U.S. citizens and institutions.</u>

5 0
3 years ago
Why are financial intermediaries willing to engage in information collection activities when investors in financial instruments
d1i1m1o1n [39]

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C. Banks make private​ loans; their conclusions on who is creditworthy are not made public.

Explanation:

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Individual investors, therefore, have inadequate incentives to devote resources to gather information about borrowers who issue securities.

4 0
4 years ago
Grocers in neighborhoods with a large Hispanic population typically carry more brands that Hispanic consumers prefer than grocer
jolli1 [7]

Answer:

D. local marketing

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Local marketing can be done through sponsorship of events, advertisement, e.t.c.

3 0
3 years ago
On January 1, 2022, the Ivanhoe Company ledger shows Equipment $48,300 and Accumulated Depreciation $17,720. The depreciation re
Cerrena [4.2K]

Answer:

$13,290

Explanation:

Straight line depreciation expense = (book value of asset - salvage value ) / useful  life

Book value of the asset = $48,300 - $17,720 = $30,580

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8 0
3 years ago
With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at
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Answer:

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Explanation:

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(2). Liabilities

(3). Fixed incomes

(4). Private equity and capital management.

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It can be calculate using the formula below:

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Therefore, 'With respect to engineering economics and the internal rate of return (IRR), Descartes’ rule of signs indicates there will be at most as many POSITIVE rates of return as there are sign changes in the cash flow profile.''

4 0
4 years ago
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