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Colt1911 [192]
3 years ago
6

Sarah Gray wants to invest a certain sum of money at the end of each year for five years. The investment will earn 4% compounded

annually. At the end of five years, she will need a total of $45000 accumulated. How should she compute her required annual investment? g
Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

How should she compute her required annual investment?

$ 36.987  

Explanation:

With the present value formula we can calculate how she has to invest today to get $45,000 at the end of the 5 years, with a compounded rate of 4%.

Principal Present Value  =  F /  (1 + r)^t  

In this case we have the future value and we need to find the present value that we have to invest to get the money expected.

Principal Present Value  =  45,000 /  (1 + 4%)^5 = $36,987  

If we invest today $36,987, with a compounded interest rate of 4% we get at the end of the period, 5 years, the total sum of $45,000.

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Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bear
kompoz [17]

<u>Solution and Explanation:</u>

  • When interest rate is 8%, opportunity cost is 800 dollar per year for 10000.
  • When interest rate is 10%, opportunity cost is 1000dollar per year for 10000.

McQ ans is C I.e. Qunatity demand decreases as interest rate rises because Md=KPY-hi

It is to kept in mind that with the change in the quantity that is being demanded may fluctuate with the change in the interest rate. The relationship between the price and demand goes hand in hand.  

7 0
3 years ago
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a p
Svetlanka [38]

Answer:

B. $34,000; -$1,000

Explanation:

Accounting profit equals total revenue minus explicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 = $34,000.

Economic profit equals total revenue minus the sum of both explicit and implicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 - $35,000 = -$1,000

4 0
3 years ago
Consider the market for Ping golf clubs. Suppose the price of memberships at local golf courses increases. Assume memberships at
Tema [17]

Answer:

Left

Explanation:

Complement goods are goods that are used together. If the price of one good goes up, consumers would demand less of the other good.

If the price of club membership increases, the demand for club membership would fall. Since membership has fallen ,there won't be need to purchase golf clubs as they are complements, so the demand for golf clubs would fall and the demand curve for golf clubs would shift to the left.

I hope my answer helps you

5 0
3 years ago
Suppose that today’s date is April 15. A bond with a 10% coupon paid semiannually every January 15 and July 15 is listed in The
Ray Of Light [21]

Answer:

1,011.429 dollars

Explanation:

The dealer is willing to sale bond (we purchase from the dealer) at the ask price

In this case 1,011.429 dollars per bond.

If anyone want's to purchase those bonds will have to pay this amount per bond.

The opposite to the ask price is the bid price, which is the price at which the dealer is willing to purchase bond (we sale it to the dealer).

3 0
3 years ago
In two or three sentences, describe how you would use some of the budgeting tools to help manage your money.
Bas_tet [7]

Answer:

Budgeting tools provide notifications and reminders to help us keep track of our spending and savings.

Explanation:

We may use a budgeting program to keep track of how much we spend. Budgeting tools can assist us in reducing undesirable and unneeded spending. It can also help us be more disciplined with our spending and save more money. We may set up notifications or reminders to help us keep track of our spending.

5 0
2 years ago
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