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Andrej [43]
3 years ago
5

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much interest is earned on the i

nvestment? a. $4,740 b. $7,458 c. $7,672 d. $17,567 Please select the best answer from the choices provided A B C D
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer:

Option (c)  $7,672

Explanation:

Data provided in the question:

Investment amount i.e principle = $9,875

Interest rate,r = 4.8%

Time, t = 12 years

Now,

Future value = Principle ×\left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}

n = number of times compounded per year

Future value == 9875\times\left( 1 + \frac{ 0.048 }{ 12 }\right)^{\Large{ 12 \cdot 12 }}

Future value =9875\times{ 1.004 } ^ { 144 }

Future value =9875\times1.776866

Future value = $17,546.55

Also,

Future value = Principle + Interest

Therefore,

$17,546.55 = $9,875 + Interest

or

Interest = $17,546.55 - $9,875

= 7671.55 ≈ $7,672

Hence,

Option (c)  $7,672

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C. using more liberal credit terms to increase sales

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In tort law, what is proximate cause?
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Answer:

B

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2 years ago
A company has recorded the last five days of daily demand on its only product. Those values are 120, 125, 124, 128, and 133. The
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Safety stock is a term used by logistics personnel to describe additional inventory held to reduce the risk of stock-outs (shortages of raw materials or packaging) due to supply and demand uncertainties. Adequate safety stock allows business operations to continue as planned. Safety stock is held when demand, supply, or production is uncertain and acts as insurance against stockouts.

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8 0
1 year ago
A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol
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Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

  • the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing.

Explanation:

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3 years ago
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Answer:

The journal entry to record the issuance of new stocks is:

Dr Cash 164,800

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When you issue new stocks, the common stock account increases by par value (= 10,300 stocks x $7). Any money obtained over par value must be recorded under the additional paid in capital account (= 10,300 x $9).

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