All categories

1 year ago

you deposit $6000 in an account earning 2% interest compounded continuously. how much will you have in the account in 10 years?

Business

1 answer:

Gre4nikov [31]1 year ago

4 0

Future Value is $7,327.20

<h3>What is compound interest ?</h3>

Compound interest is the interest on deposits that is computed using both the original principal and the interest accrued over time.

It is thought that the concept of "interest on interest" or compound interest first appeared in Italy in the 17th century. Compared to simple interest, which is just charged on the principal amount, it will cause a sum to grow more quickly.

Money grows more quickly when it is compounded, and compound interest increases as the number of compounding periods increases.

CI formula : A = P(1 + r/n)^nt

where,

P = principal balance,

r = interest rate,

n = number of times interest is compounded per time period and

t = number of time periods.

To solve this question :

A = P(1 + r/n)^nt

= 6,000 (1 + 0.02/12) 120

= USD 7,327.20

To know more about compount interest, visit :

brainly.com/question/14295570

#SPJ4

You might be interested in

Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap. Govern

lana [24]

Answer:

The correct answer is:

Government should either raise its expenditures or cut taxes. I believe the government spending multiplier is greater than the tax multiplier, so I favor this policy.

Explanation:

To begin with, an "expansionary fiscal policy" represents the tool that a government has in order to give response to a recessionary context in where the economy is falling down by decreasing its production. That is why, that in this type of policy the actions that are to be taken comprehends the reduction of taxes that the public sector collects from the private sector and also to increase the public expenditures that the government has with the purpose to estimulate the demand and offer of goods.

4 0

3 years ago

A mixed-market economy is one in which

GalinKa [24]

Answer:

both the government control and the private sector exist

Explanation:

The mixed-market economies are economies that have primarily developed from the command economies, but have implemented market economy elements as well. In this type of economies we have a situation where the governments still have a very important role in the economy, while in the same time, the private businesses are also thriving. The government is usually in control of the most important and abundant natural resources, thus providing security for the country's people and economy. The private businesses are able to operate freely, and they collaborate with the government as a business partner., with both of them being dependent on each other.

8 0

3 years ago

The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation

dalvyx [7]

Answer: B. reduces reported net income of the period but does not involve an outflow of cash for that period.

Explanation:

Depreciation is the wear and tear of an asset due to the use of the asset. When an asset is depreciated, such an asset is eventually sold at a scrap value.

The statement of cash flows (indirect method) reports depreciation expense as an addition to net income because depreciation reduces reported net income of the period but does not involve an outflow of cash for that period.

5 0

3 years ago

Joe: "i think the key additional information you need to know in deciding whether the doctor should keep the medical practice

RoseWind [281]

This is what Joe says: "Information is more important than the additional revenue and additional cost of being open 1 more hour."
He is a wise person

8 0

3 years ago

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated grave

anastassius [24]

Answer: Discharged

Explanation:

Discharge contract is one of the type of concept that helps in making the various types of agreement between the two members or any two companies.

The discharged contract is basically discharged by using the various types of operation of laws and also b terminating the different types of obligations.

According to the given question, the Clyde contracts with the deep-hole excavation Inc., is one of the type of discharged contract for the process of digging an agriculture farm. Therefore, Discharged contract is the correct answer.

8 0

3 years ago