1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
JulijaS [17]
3 years ago
14

What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?

Business
1 answer:
gladu [14]3 years ago
6 0

Answer:

FV = $16126.99655 rounded off to $16127

Explanation:

To calculate the future value of a sum of money, we simply multiply the present value by (1 + interest rate) for the period of time that we require the amount to be compounded. Thus, the formula for the future value of a sum of amount with annual compounding is,

FV = P * (1+i)^t

Where,

  • FV is future value
  • PV is present value
  • i is the interest rate
  • t is the period of time

For semi annual compounding, we simply divide the annual i by 2 and multiply the t by 2. So, Future value of an amount with semi annual compounding will be,

FV = P * (1 + i/2)^t*2

FV = 12000 * (1 + 0.06/2)^5*2

FV = 12000 * (1+0.03)^10

FV = $16126.99655 rounded off to $16127

You might be interested in
Grouping pieces of information together to expand the effective capacity of short-term memory is termed _________.
Goryan [66]

Answer:

The correct answer is Chunking

Explanation:

3 0
3 years ago
5) Scanlin, Inc. is considering a project that will result in initial aftertax cash savings of $2.1 million at the end of the fi
rewona [7]

Answer:

The PV of future cash flow is $22,925,764, therefore the company should take on the project

Explanation:

In order to know if the company should take on the project we have to calculate the PV of future cash flow as follows:

PV of future cash flow=<u>    D1    </u>

                                        RE-g

To calculate this formula we requre to calculate the WACC and the discount rate as follows:

WACC=(1.00/1.80×0.11)+0+(0.80/1.80×0.046)

WACC=0.0611+0+0.02044

WACC=0.081556

WACC=8.16%

After having calculated the WACC we can calculate the project discount rate as follows:

project discount rate=WACC + Additional risk factor

=8.16%+3%

=11.16%

Therefore, PV of future cash flow= <u>$2,100,000</u>

                                                            0.1116-0.02

PV of future cash flow= <u>$2,100,000</u>

                                            0.0916

PV of future cash flow=$22,925,764

The PV of future cash flow is $22,925,764, therefore the company should take on the project

4 0
3 years ago
During her performance review, Tuli’s manager tells her that numerous customers have not been satisfied with her assistance. Acc
romanna [79]

<em>Tuli can improve her performance by means of observing relational level in terms of customer assistance satisfaction thru establishing good business relationship to all people involve in her work. Starting from her co-workers to business associates, clients, suppliers and even stakeholders. No matter how good a product is, if one person couldn't handle a good attitude in making transaction with their clients or co-workers, the company could experience a great loss and revenue. Therefore, Tuli can do the following: </em>

<em>1. She must communicate more often and in a friendly way to all who she is working with. She could start every conversation with politeness and friendly greetings to everyone. </em>

<em>2. She must always put a personal touch on her work such as giving joy to her customers and co-workers as she delivers products and services. </em>

<em>3. She must learn to become a good teamworker. As long as she knows how to work with other people, then she could learn from them and get tips from them. Good relationship to her customers will help her and the company to establish a good reputation to all clients.</em>

5 0
3 years ago
A cognitive psychologist believes that people learn better when they spread out their studying over several days, so she creates
Ainat [17]
The participants were tested according to the number of days they Mandarin every 20 minutes. It's been testing which would be the best model to study a foreign language. This is an experimental study of identifying the most effective method based on the experiments.
8 0
3 years ago
LinkedIn Prospecting?
prohojiy [21]

Answer:

<em><u>Sales prospecting is what it sounds like: Sifting through a mountain of businesses and individuals to uncover the prospects who are most likely to convert into paying customers with a little effort, like a miner panning for gold. Like prospecting for gold, it takes a lot of time.</u></em>

<em>#CarryOnLearning</em><em> </em>

4 0
3 years ago
Read 2 more answers
Other questions:
  • (LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among
    8·1 answer
  • Maas LLP developed software that helps farmers to plow their fields in a manner that prevents erosion and maximizes the effectiv
    11·1 answer
  • An art director is an an example of?
    15·2 answers
  • In 1-2 sentences, explain how wage discrimination results in unequal pay.
    14·1 answer
  • A company should immediately recognize: any gain when it constructs a piece of equipment at a cost savings. any gain when it mak
    8·1 answer
  • The purpose of advertising is _____.
    9·2 answers
  • Your coin collection contains fifty-four 1941 silver dollars. Your grandparents purchased them for their face value when they we
    14·1 answer
  • The first step in the human resources planning process is to: a. assess future labor demand. b. prepare a forecast of human reso
    14·1 answer
  • Jason wants to open a checking account with a ​$100 deposit. Jason believes he will write 15 checks per month and use other​ ban
    15·1 answer
  • Jules &amp; Associates had the following information available related to revenues and expenses for the current period: Services
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!