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Rzqust [24]
2 years ago
12

Compute the future value of $2,000 compounded annually for 20 years at 6 percent. (Do not round intermediate calculations and ro

und your answer to 2 decimal places, e.g., 32.16.) b. Compute the future value of $2,000 compounded annually for 15 years at 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Vinvika [58]2 years ago
7 0

Answer:

A) FV= 6414.27

B) FV=2000*(1.09^15)= 7284.97

Explanation:

Giving the following information:

A) Present value=  $2,000

Compounded annually for 20 years at 6 percent.

n= 20

i=0.06

B) Present value= $2,000

Compounded annually for 15 years at 9 percent.

n=15

i= 0.09

To calculate the Final Value we need to use the following formula:

FV= Present value*(1+interest rate)^n

A) FV= 2000*(1.06^20)

FV= 6414.27

B) FV=2000*(1.09^15)= 7284.97

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musickatia [10]

Answer:

The answer is =16.7%

Explanation:

Earnings before interest and taxes(EBIT) = $145,000

Tax rate is 25%

Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%

So the Net income is 0.75 x $145,000

Net income = $108,750

The project is financed by 100percent equity and the cost is $650,000.

ROE(Return on Equity) = net income/equity

$108,750/$650,000

=16.7%

7 0
3 years ago
Real property subject to a lien is referred to as:
antoniya [11.8K]
The owner of the  property, who allow  the lien, is relate to as  the Lienee and the person who has the advantage of the lien is referred to  as the  Lienor or Lien holder.
In the United States, the term lien usually pertain to a wide range of encumbrances and would involve other forms of mortgage or charge.
7 0
3 years ago
HEH, Inc. owns a large parcel of land which will be used for commercial development. Upon the sale of the property to HEH, Inc.,
Naily [24]

Answer:

covenant.

Explanation:

Based on the information provided within the question it can be said that the type of deed that is in place is called a covenant. This term refers to any agreement that has been made in a written form such as a lease, deed, or other legal contract. Which is what HEH, Inc. has made with the written agreement stating that the lake cannot be touched.

6 0
2 years ago
Why does a​ $1 increase in government purchases lead to more than a​ $1 increase in income and​ spending? A. Through the governm
MArishka [77]

Answer:

D. Through the government purchases​ multiplier, the​ $1 increase in government spending will lead to an increase in aggregate demand and national​ income, which will lead to an increase in induced spending.

Explanation:

We know,

Multiplier = Changing real equilibrium GDP ÷Change of government spending.

If we increase the multiplier, government spending will lead to an increase in aggregate demand that is potential GDP is higher than actual GDP and national​ income, which will lead to an increase in induced spending. Therefore option D is the correct answer as options A, B, and C do not meet the requirements.

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2 years ago
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When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is <u>low </u>so the quantity of money demanded will be <u>high</u>.

If interest rates go up, the demand for money will go down. Once it equals the new money supply, there will be no more difference between how much money people are holding and how much they want to keep, and the story is over. This is why (and how) a decline in the money supply raises interest rates.

As interest rates rise, the amount of money demanded decreases because the opportunity cost of holding money decreases. As interest rates rise, aggregate demand shifts to the left. The interest rate effect arises from the idea that higher price levels reduce the real value of household holdings.

Learn more about interest rates here: brainly.com/question/1115815

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7 0
1 year ago
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