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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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Which of the following behavior patterns may be a characteristic of minors
Schach [20]

Answer:

Self conscious about appearance

Explanation:

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7 0
3 years ago
"Investment X offers to pay you $5,800 per year for 9 years, whereas Investment Y offers to pay you $8,600 per year for 5 years.
Butoxors [25]

Answer:

Present value of investment X = $41,225.37

Present value of investment Y = $37,233.50

Explanation:

The present value of the cash flows can be found by discounting the cash flows at the discount rate.

This can be found using a financial calculator

Cash flow each year from year 1 to 9 for investment X = $5,800 

Discount rate = 5%

Present value = $41,225.37

Cash flow each year from year one to year 5 for investment Y = $8,600 

Discount rate = 5%

Present value = $37,233.50

I hope my answer helps you

5 0
3 years ago
Manufacturers sometimes offer a quantity discount to buyers on what kind of order?
Sergeu [11.5K]
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6 0
3 years ago
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Currently the U.S. Olympic Committee (USOC) pays Olympic athletes $25,000 for each gold medal, $15,000 for a silver medal, and $
Mkey [24]

Answer:

Option A                  

Explanation:

In simple words, Valence is individuals mental attitude towards result in second order. In this situation, the consequence of the first requirement is title earning and the consequence of that same second order is really the monetary support the competitors receive from either the USOC. Motivational Force (MF) = Survival rate * Instrumentality * Valence as according to Vroom's expectation principle.

7 0
3 years ago
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