Answer:
<em>The future value of the investment will be $3,754</em>
Explanation:
<u>Future Value of Investment</u>
Suppose we have a principal P invested for a period of n years at an interest rate i compounded annually. The final value or future value FV of the investment can be computed by:
The case we are considering consists of a present value P=2,000 that will be used to purchase a n = 10-year certificate of deposit (CD). It pays i=6.5% interest. When the CD matures, 10 years from now its value will be
The future value of the investment will be $3,754
Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows default risk differences.
The more credit danger related to an enterprise the better the fee of going back presented on its monetary contraptions, and that is reflected in the example given within the query. The T bond has the lowest chance of default due to the fact it's far assured by using the Treasury, so the return is the lowest.
The excellent-rated company bond has the bottom return among company bonds, and the worst-rated pays the best return bonds can be noncallable for a time period, giving a length of constant hobby payments to the customer after which, become callable after that period to allow the company to reset the interest fee at the debt specifically if the marketplace has changed. Noncallable security is a monetary safety that can't be redeemed early by the company besides from the fee of a penalty.
Learn more about The interest rate here:-brainly.com/question/3405605
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The answer to the question above as to which is not a form of compensation is fixed working hours. Compensation can come to different forms and it includes bonuses, awards, promotion and higher opportunity to once career. Working on a fixed working hours is not a form of compensation because it is a standard form of employment. We can say that a Flexible working schedule or hour will be a compensation because it is a form of an advantage to the employee.
Answer:
$2,000
Explanation:
The computation of the profit in case of Product B processed further is shown below:
Sales value if processed further $35,000
Less: Sales value at Split-Off $30,000
Incremental revenue $5,000
Less: Additional costs $3,000
Incremental income $2,000
First we have to find out the incremental revenue after that deduct the additional cost so that the incremental income or we can say profit could arrive
