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Murrr4er [49]
2 years ago
6

Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two years, starting two years f

rom now and continuing forever.
Business
1 answer:
Serga [27]2 years ago
5 0

principal = p

annual interest rate R = 6%

1-year time t

interest amount = p+t/100

The 2-year interest rate is 100 and the time is 2

100= p×2×6/100

100 × 100/ 2×6=p

p=10000/ 12

=5000/6

=2500/3

=833.33

investment = 833.3

number of compounding periods)) ^ (number of compounding periods) - 1. For investment A, this is: 10.47% = (1 + (10% / 12)) ^ 12 - 1. investment For B, it looks like this: be : 10.36% = (1 + (10.1% / 2)) ^ 2 - 1.

The formula for converting simple interest to annual compound interest is (1 + R/N)N - 1 where R is the simple interest rate. , where N is equal to the number of compounded interest in one year. Future Value Formula The superscript n represents the number of compounding periods that occur during the period you are calculating. ...

3) FV = $1,000 x (1 + 0.1)5

Learn more about interest here;

brainly.com/question/24924853

#SPJ4

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7 0
2 years ago
use the traditional model of supply and demand to explain how an increase in the price of ice-cream would affect the price of fr
pochemuha

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Endogenous variable - frozen yogurt

exogenous - ice cream

If ice cream become more expensive the demand for ice cream would fall and consumers would shift to the consumption of frozen yogurt which is cheaper. This changes are in line with the law of demand. According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded. According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

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