The accounting book or computer program where each day's transactions are first recorded is called a:
1 answer:
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Answer:
Compounding interest rate, r = 10.41%
Explanation:
As the investment will be doubled after 7 years from now, the future value of the current investment will be = $10,000 × 2 = $20,000
Therefore,
Number of periods (years), n = 7
Future value, FV = $20,000
Principal = Present Value, PV = $10,000
we have to determine the compounding interest rate, r.
We know,
r =
Putting the values into the formula, we can get,
r =
or, r =
With the help of calculator, we can find the value of = 1.1041
or, r = (1.1041 - 1)
or, r = 0.1041
Therefore, interest rate = 10.41%
Answer:
$1,667.67
Explanation:
Given:
Balance in savings account at the beginning of the year = $2,000
Price level at the beginning of the year = 100
Price level at the end of the year = 120
Anything that is worth $120 in the beginning of the year is worth $100 at the end of the year.
Anything worth $1 in the beginning is worth 100/120 at the end.
So, $2,000 is worth = $1,667.67 at the end of the year.
Real value of savings is close to $1,667.67.