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3 years ago

What is the present value of $900 annuity payment over 6 years if interest rates are 10%

Business

1 answer:

Rudik [331]3 years ago

8 0

Answer:

$ 508.03

Explanation:

To calculate present value of an annuity, N, we can use the formula;

$N=\frac{A}{(1+r)^n}$

From the question, the future value of the annuity is A=$900, the percentageW interest rate per compounding period is r=10%=0.1, and the number of deposit to be made in the annuity is n=6

We plug the values into the formula to get:

$N=\frac{900}{(1+0.1)^6} = \frac{900}{1.1^{6} } = 508.03$

Therefore the present value is $508.03

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Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and ac

bezimeni [28]

Answer: A. True

B. True

C. False

Explanation:

A. Both Mutual Savings Banks and Credit Unions are owned by the their depositors. Credit Unions are owned and operated by members for the purpose of creating banking services for themselves at a cheaper cost.

Mutual Savings Banks are also owned by members who felt that traditional banks did not favour them.

B. Demand Deposit accounts exist in both commercial banks and Credit Unions but with different names. In Commercial banks they are known as Checking accounts for the most part but Credit Unions call them Share Draft Accounts and members of the Union can use these accounts by writing drafts like Commercial banks allow cheques.

C. While Credit Unions were formed usually for people in the same organisations or people with a common bond, Mutual Savings Banks were generally meant to uplift the lower economic classes so they did not share a common bond as Credit Union members do.

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3 years ago

Money invested is usually used to do which of the following?

Sergeeva-Olga [200]

It should be noted that money invested is to C. Achieve long-term goals

<h3>What is money?</h3>

It should be noted that money is a means of exchange. It is required for our transactions.

When money is invested, the purpose is simply to achieve long-term goals. This can be an increase in revenue, prepare for future financial needs, etc.

Learn more about money on:

brainly.com/question/24373500

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2 years ago

What is an example of digital citizenship

shusha [124]

The answer is C. Email Etiquette

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2 years ago

Rayburn owns all the shares of Newcastle Corporation, which operates as an S corporation. Rayburn's basis in the stock is $15,00

maksim [4K]

Answer:

$7,000 $-0-

Explanation:

For Rayburn to know what to record from the cash distribution, he will need to subtract his basis in the stock from the cash distribution he receives

Therefore $22 000 - $15 000 = $7 000.

And Newcastle has no income =$-0-

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3 years ago

You want to quit your job and go back to school for a MBA 4 years from now, and you plan to save $8,800 per year, beginning imme

dsp73

Answer:

d. $40,510.15

Explanation:

The following tables will make it easier understanding the calculations.

Every year, you add the deposit of $8,800 to the starting amount, calculate the 5.7% interest over the balance, add the interests to the balance and obtain the final balance of the year, which is the starting balance of the next year.

First year:

Start ($): 0

Deposit ($): 8,800

Balance ($): 8,800

Interest($): 5.7% × 8,800 = 501.60

Final balance ($): 8,800 + 501.60 = 9,301.60

Second year:

Start ($): 9,301.60

Deposit ($): 8,800

Balance ($): 9,301.60 + 8,800 = 18,101.60

Interest($): 5.7% × 18,101.60 = 1,031.79

Final balance ($): 18,101.60 + 1,031.79 = 19,133.39

Third year:

Start ($): 19,133.39

Deposit ($): 8,800

Balance ($): 19,133.39 + 8,800 = 27,933.39

Interest($): 5.7% × 27,333.39 = 1,595.20

Final balance ($): 27,933.39 + 1,595.20 = 29,525.59

Fourth year:

Start ($): 29,525.59

Deposit ($): 8,800

Balance ($): 29,525.59 + 8,800 = 38,325.59

Interest($): 5.7% × 38,325.59 = 2,184.56

Final balance ($): 38,325.59 + 2,184.56 = 40,510.15

7 0

3 years ago