The correct statement is that it will take 10.155 years to accumulate $3000 on an initial investment of $2000 for the down payment of the car. Future value will be calculated for this purpose. The correct option is C.
The computation will be done by calculating the future value by the way of applying the given information to the formula of calculation of future value of the deposit. We are using an optional method for this calculation.
<h3>Calculation of future value </h3>
- The future value of an annuity deposit can be calculated by using the formula given below and applying the values given to us in the information regarding the deposit,
- So, it can be concluded that it will take about 10 years for the amount to become $3000 at the rate of 4 percent.
Hence, the correct option using the substitution method of future value is C that it will take 10.155 years for the amount to become $3000 over an annual interest rate of 4 percent compounded monthly.
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The amount of the operating cash flow using the top-down approach is<u> $2,200</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Sales of production= $6,000
Increase in cash expenses= $2,500
Increase in tax= $1,300
Additional depreciation expense= $1,000
Initial cash outlay= $2,000
Operating cash flow= Sales of production- Increase in cash expenses- Increase in tax
OCF = 6,000-2,500-1,300
= $2,200
So the amount of the operating cash flow using the top-down approach is $2,200.
Answer:
Timeline and tagging settings
Explanation:
Timeline and tagging settings is a feature in social media applications such as Face-book, Twi-tter, Insta-gram etc. that allows you to control being linked to other people's posts.
When this settings is properly configured, you will only be linked to the posts of people you allowed, in this case it will be your mutual friends rather than the general public.
You are thinking about a project that is anticipated to bring in $138,066.75 annually.
<h3>How do you calculate the cash flow from an annuity?</h3>
The periodic cost of capital When the cost of capital is constant across all maturities, an AFs is the sum of the DFs for each cash flow in the annuity.
<h3>A stream of cash flows is what?</h3>
A sequence of equal-amount cash flows that occur at predictable, periodic times. When determining the comparable future value of a present amount of liquidity, the effect of time on value or the rate at which time affects value is taken into account a series of regular financial flows that never ends an infinite annuity.
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