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nydimaria [60]
3 years ago
10

The future value and present value equations also help in finding the interest rate and the number of years that correspond to p

resent and future value calculations. If a security of $6,000 will be worth $7,300 five years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security?
Business
1 answer:
Vilka [71]3 years ago
4 0

Answer:

4%

Explanation:

Solution:

Calculation for the the implied interest rate the investor will earn on the security

Using this formula

Future value = Present Value (1+r)^t

Where,

Future value =$7,300

present value = $6,000

t= period = 5 years

r= interest implied = ??

Let plug in the formula

Future value = Present Value (1+r)^t

$7,300 = $6,000 (1+ r)^5

1+ r = ($7,300/$6,000 )^(1/5)

1+ r = 1.216666666^(1/5)

1+ r = 1.04

r= 1.04-1

r= 0.04*100

r= 4%

Therefore the implied interest rate the investor will earn on the security will be 4%

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Explanation:

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2 years ago
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Natali [406]

Answer:

I think it's A) Always just answer the question the customer has.

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4 0
2 years ago
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VMariaS [17]

Answer:

the requirements are missing, so I looked for a similar question:

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2017 = $62,976 / $50,555 = 1.25

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2017 = ($62,976 - $26,042) / $50,555 = 0.73

2018 = ($67,600 - $27,500) / $57,000  = 0.70

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2017 =  $24,086 / $50,555 = 0.48

2018 = $24,500 / $57,000 = 0.43

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2018 = $373,473 / [($391,671 + $430,000) / 2] = 0.91

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2018 = $254,500 / [($26,042 + $27,500) / 2] = 9.51

f. Receivables turnover = sales / average accounts receivable

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8 0
3 years ago
Eurodollars are _________. A. dollar denominated deposits at any foreign bank or foreign branch of an American bank B. dollar de
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Answer:

A. dollar denominated deposits at any foreign bank or foreign branch of an American bank

Explanation:

  • Are dominations deposited in US dollars in banks that are outside the united states thus are not under the rule or jurisdiction or federal laws. The eurodollar rate is also known as the LIBOR rate is equal to the base rate adjusted by minimum reserve requirements.
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Answer:

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