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Allushta [10]
3 years ago
10

How much money would you have to deposit today in order to have $5,000 in three years if the discount rate is 6 percent per year

? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Stells [14]3 years ago
8 0

Answer:

$4,198.10

Explanation:

Compounding and discounting are the methods used to determine the present and future value of money.

Compounding shows the Future value of an amount today while discounting shows the present value of a future amount.

Fv = Pv ( 1 + r )^n

where

Fv = Future value

Pv = Present value

r = discount rate

n = time

5000 = Pv ( 1 + 0.06)^3

Pv = 5000(1.06)^-3

= $4,198.10

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Explanation:

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On october 22, 2016, leahy corp. sold land to heller co., its non-wholly owned subsidiary. the land cost $122,000 and was sold t
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The purpose of cascading the balanced scorecard throughout the organization is: _____________
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b. To ensure strict hierarchical control of the organization.

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2 years ago
Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He
Yuliya22 [10]

Answer:

The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.

Explanation:

The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:

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6 0
3 years ago
Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he
mario62 [17]

Answer: Bank B is the better investment. In 10 years, her $2,000 will grow to $4,317.85, and with bank A, her $2,000 will grow to $3,700.

Explanation:

Bank A was offering 8.5% simple interest. $2000 with 8.5% simple interest. = A = P(1 + rt)

A = 2000(1+(0.085*10))

= 2000(1+0.85)

= 2000(1.85)

= 3,700

Bank B was offering 8% compounded annually

= A = P(1+r/n)^nt

A= 2000(1+8%/1)^1*10

A= 2000(1+0.08)^10

A= 2000(1.08)^10

A= 2000*2.1589

= 4,317.85

8 0
3 years ago
Read 2 more answers
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