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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 :

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They work outside

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Answer: (A) Capitalist

Explanation:

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Therefore, Option (A) is correct.

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3 years ago

Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2013 for $300,000. This investment was ac

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Answer:

$280,950

Explanation:

As for the information given:

Closing balance of investment on 31 December 2015 = $440,000

Now the following adjustments need to be made to calculate the balance as on 1 August 2016

Add: Share of income from Jan to Jul 2016 = $4,000 $\times$ 7 months $\times$ 20% = $5,600

Less: Dividend Received = $20,000 $\times$ 20% = $4,000

Less: Amortization of patent = $6,000/12 $\times$ 7 = $3,500

= $440,000 - $1,900 = $438,100

Since Jabiru sold half of its investment, thus, value of its half of the investment shall be:

$438,100/2 = $219,050

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3 years ago

This assignment requires the application of your understanding of how the federal budget deficit affects economic variables.

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The impact of a federal budget deficit on interest rates and the trade balance is that it can bring about the inflow of foreign financial capital as well as a better exchange rate.

<h3>How can budget deficit have effect on trade balance?</h3>

When there is a stronger exchange rate there will be a little bit difficult for all the exporters that want to sell their goods to foreign countries, and at this time the imports will become cheaper.

In this case, trade deficit will definitely bring about an inflow of foreign financial capital as well as a good exchange rate.

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2 years ago

Your portfolio has a beta of 1.28. The portfolio consists of 25 percent U.S. Treasury bills, 31 percent Stock A, and 44 percent

Ivanshal [37]

Answer:

2.21

Explanation:

Portfolio beta = Respective beta*Respective weight

<em>Beta of market=1;Beta of risk-free assets=0</em>

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1.28 = 0 + 0.31 + 0.44*Beta of Stock B

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3 years ago