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2 years ago

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]2 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

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2 years ago

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Vanyuwa [196]

Answer:

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3 years ago

With a pull marketing strategy,A. orders for merchandise are generated at the store level based on sales data captured at POS te

o-na [289]

Answer:

A. orders for merchandise are generated at the store level based on sales data captured at POS terminals.

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3 years ago

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2 years ago

Monitor Muffler sells franchise arrangements throughout the United States and Canada. Under a franchise agreement, Monitor recei

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Answer:

1. $163,800

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3. $ 607,120

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1. Computation of the amount that Monitor would calculate as the stand-alone selling price

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Less: stand-alone selling price of training $ (18,200)

Less: stand-alone selling price of building and equip $ (578,000)

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Note that five-year will give us 60 months (5*12months and September to December will give us 4 months

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2 years ago