$100,000 was allocated by a stockbroker to a portfolio yielding 4% annually compounded. If no withdrawals are taken, there will be $117,352 left in the account after four years.
Given a certain rate of return, present value (PV) is the current value of a future financial asset or stream of cash flows. A discount rate or the interest rate that could be obtained through investment is applied to the future value to get the present value.
According to the continuously compounded interest formula,
FV = PV 
Here,
Present Investment Value, or PV
the interest rate, I
T = time in years
So,
In light of the specified
PV = $ 100,000
I = 4% = 0.04
t = 4 years
Hence
FV stands for "Final Investment Value"
Then,
FV = 100,000 * e⁰.⁰⁴ˣ⁴
FV = 100,000*e⁰.¹⁶
FV = 100,000 * 1.173510871
FV = 117351.0871
FV = 117351
Hence
The balance in the account after four years was = $117,352
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Answer:
law of diminishing marginal returns
Explanation:
Based on the information provided regarding this situation it seems that the firm is experiencing the law of diminishing marginal returns. This is basically stating that producing more units per output will sooner or later cost a lot more than the initial value, because inputs are being used less as well as less effectively. This will continue to be so as production increases.
Demonstrates the existence of the contract and its terms
Answer:
Satisfied and Loyal customers help in the profitability and growth of an organization.
Explanation:
When a company produces a product, they put their best in the design, process, manufacturing and dispatching of the product, so that their target customers use this product and gets satisfied. When consumers get the product of exactly their needs, they try to buy it again and again and becomes the loyal customers of that specific company. Such customers are the permanent customers of that organization and they are ready to pay for the product, thus helps in the profitability of the organization. Also when they talk about the product to other people, they become the marketing agents of the company, thus helping the company to grow. In this way, satisfied and loyal customers help in the profitability and growth of an organization.
