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Alexxandr [17]
3 years ago
6

How do you get the profit?

Business
1 answer:
Colt1911 [192]3 years ago
8 0

buy for less money and sell for more money

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Susan Wilson wants to accumulate $14,500 by the end of 12 years. If the annual interest rate is 5.70 percent and interest compou
Aleksandr [31]

Answer:

She have to invest $7,387 today to achieve goal

Explanation:

Future value is the accumulated value of principal and compounding interest after some period of investment.

Target Future value = A = $14,500

Number of year = 12 years

Yearling compounding = 2 time a year

Total compounding = n = 12 x 2 = 24 compounding periods

Interest rate = r = 5.7% yearly = 5.7% / 2 = 2.85% semiannually

A = P ( 1 + r )^n

$14,500 = P ( 1 + 2.85% )^24

$14,500 = P x 1.963

P = $14,500 / 1.963

P = 7,386.65

P = 7,387

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Price decreases and demand increases

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