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3 years ago

What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

1 answer:

3 0

Use
$F=P(1+i)^n$

Substituting
F=1000, P=863.84, n=3
solve for i
$1000=863.84^(1+i)^3$
solving for i
=>
$i=(\frac{1000}{863.84})^{\frac{1}{3}}-1$
=0.0500

Answer: the annual interest rate is 5%

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2 years ago

Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year

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Answer:

Feb 1=> Cash ( debit) = 2,444,000.

Prefered stock (credit) = 2,350,000.

Paid in capital in excess of par value-preferred stock(credit) = 94000.

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Paid in capital in excess of par value-preferred stock(credit) = 375000.

Explanation:

(A). On FEB. 1, the accounts and Explanation is given below:

Cash ( debit) = 2,444,000 {that is from; 47,000 × $52}.

Prefered stock (credit) = 2,350,000 { that is from; 47,000 × $50}.

Paid in capital in excess of par value-preferred stock(credit) = 2,444,000 - 2,350,000 = 94,000.

(B). On JULY 1, the accounts and Explanation is given below;

"July 1 Issued 62,500 shares for cash at $56 per share."

=> Cash (debit) = 62500 × 56 = 3,500,000.

Prefered stock (credit) = 3,125,000 { that is from; 62,500 × $50}.

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2 years ago

Read 2 more answers

you invest $1300 in an account at interest rate r, compounded continuously. Find the time required for the amount to double and

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Answer:

1. For the amount to double: 9.37 years

2. For the amount to triple: 14.85 years

Explanation:

The equation for continuosly compounded interest is:

$F=P\times e^{rt}$

Where:

P is the amount that you invest today: $1,300
F is the value after t years: the double or triple of $1,300
r is the annual interest rate: 0.074

1. For the amount to double:

Substitute the values and solve for t:

$2\times \$1,300=\$1,300\times e^{0.074t}\\ \\ 0.074t=\ln 2\\ \\ t=\ln 2/0.074=9.37years$

2. For the amount to triple:

$3\times \$1,300=\$1,300\times e^{0.074t}\\ \\ 0.074t=\ln 3\\ \\ t=\ln 3/0.074=14.85years$

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3 years ago

Carlton files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to:____.

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Answer:

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