Answer:
It will take 10 years to have $20,000 on investment of $10,000.
Explanation:
Annual Rate of return = r = 7%
Compounded Value / Future Value = FV = $20,000
Investment Value / Present Value = PV = $10,000
Use Future value formula to solve this question:
Future Value = Present Value x ( 1 + Number of Year )^Number of year
FV = PV x
$20,000 = $10,000 x
=
$2 =
Log 2 = n log 1.07
0.30 = n x 0.03
n =
n = 10.00
n = 10 year (rounded off to nearest year )
It will take 10 years to have $20,000 on investment of $10,000.
The same thing the person above me said:)
I am willing to assist you in economics I passed with an A !
Answer:
The cash paid on May 8 is: $5,880
Explanation:
Credit terms of 2/10, net 30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
The company purchased $6,500 of merchandise on May 1. On May 6, it returned $500 of that merchandise.
The balance owed for merchandise = $6,500 - $500 = $6,000
On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to.
The company took the appropriate discount:
2% x $6,000 = $120
The cash paid = $6,000 - $120 = $5,880