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Sonbull [250]
2 years ago
9

What is the future value of this investment at the end of year five if 5.34 percent per year is the appropriate interest (discou

nt) rate?
Business
1 answer:
leva [86]2 years ago
7 0

According to Formula:- AFV=PV(1+i)

<h3>How do you calculate the future value of an investment?</h3><h3>The future value formula</h3>

future value = present value x (1+ interest rate)n Condensed into math lingo, the formula looks like this:

FV=PV(1+i)n In this formula, the superscript n refers to the number of interest-compounding periods that will occur during the time period you're calculating for.

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

<h3>What will the future value be at the year's end?</h3>

If the proper interest (discount) rate is 5.34 percent annually, what will the investment be worth at the end of year five?

The present value ($100) plus the value of the interest at the set interest rate (5% of $100, or $5) equal the future value (FV) at the end of a year.

<h3>How is future value compounded annually determined?</h3>

The number of compound periods is exponentiated in formula 9.3, FV=PV(1+i)N. Over the course of five years, the 8% compounded monthly investment generates 60 periods of compound interest, whereas the 8% compounded annual investment generates only five periods.

<h3>How are present and future values determined?</h3>

Main Points

PV = FV/(1 + I n, where PV = present value, FV = future value, I = decimalized interest rate, and n = number of periods, is the formula for calculating present value.

The formula for future value is FV = PV (1 + i)n.

To Know more about future value (FV)

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Data for Hugh’s Corporation is provided below. Hugh’s recently acquired some risky assets that caused its beta to increase by 30
I am Lyosha [343]

Answer:

The stock's new expected rate of return is 14%

Explanation:

Ke=Rf+beta(Mrp-Rf)

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2 years ago
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REY [17]

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3 years ago
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Dennis_Churaev [7]

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2)Cost of transportation

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5)Drivers' salaries and allowances

6)Loss of materials while in transit.

7)Taxes, custom duties and import duties.

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2 years ago
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