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Kazeer [188]
3 years ago
15

You just inherited ?$12 comma 00012,000. while you plan to squander some of it? away, how much should you deposit in an account

earning 44?% interest per year if? you'd like to have ?$12 comma 00012,000 in the account in 88 ?years?
Business
1 answer:
soldier1979 [14.2K]3 years ago
6 0
44% annual interest sounds too good to be true, but we'll work with it.
Don't know exactly how much is <span>$12 comma 00012,000.
I will work with $1,000,000  (one million).  You can scale the results to the right amounts.

Future value = $1,000,000
i=0.44 
n=88
Present value=$1,000,000/(1+0.44)^88=$1.159*10^(-8), not even one cent!

However, if the interest rate is 4% for 88 years (more likely), then
Present value=F/(1.04^88)=1,000,000/1.04^88=$317,000.50.
That's the amount you need to put in today to get $1000000 in 88 years at 4% APR (compounded annually).</span>
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Fund flows that occur within a quarterly reporting period are referred to as _______________ cash flows.
valentina_108 [34]

Answer:

The options are

A. Inter period

B. Intra period

C. Regular

D. Irregular

The answer is B. Intra period

Intra period cash flow is defined as the flow which occurred in a certain period of time. In the example above , the cash flow occurred within quarterly reporting period of time.

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3 years ago
When the Fed buys​ $100 worth of bonds from a primary​ dealer, reserves in the banking system A. increase by more than​ $100. B.
ruslelena [56]

Answer:

The correct answer is D.

Explanation:

The fed buys $100 worth of bonds from a primary dealer. The fed will pay the dealer for these bonds. This will cause an increase in the total reserves by $100. The money supply will increase by more than $100. The extent of increase in the money supply depends on the required reserve ratio. This is an example of an expansionary monetary policy.

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3 years ago
Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made
koban [17]

Answer:

2.64%

Explanation:

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(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

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3 years ago
What best describes the difference between stocks and bonds
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Stocks pay interest to investors through the year. Bonds only pay interest at fixed time during the year.
7 0
3 years ago
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The perfect tender rule required that the seller __________________________________. reject the goods in part if they are not a
Hitman42 [59]

Answer:

The correct answer is letter "E": deliver goods in conformity with the contract.

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