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solniwko [45]
2 years ago
12

Calculate the presentvalue of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b.

8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly.
Business
1 answer:
kaheart [24]2 years ago
5 0

Answer:

Given:

Amount = $5000

Tenure = 5 years.

Future value = Present value\times (1+r)^{n}

where

n is number of periods

r is rate per period.

(a) 6% compounded annually.

Interest is compounded annually

No of periods in 5 years = 5

Future value = 5000(1+0.06)^{5} = 5000 × 1.33823 = $6691.15

(b) 8% compounded annually

Interest is compounded annually

No of periods in 5 years = 5

Future value =5000(1+0.08)^{5} = 5000×1.46933 = 7346.65

(c) 10% compounded annually

Interest is compounded annually

No of periods in 5 years = 5  

Future value = 5000(1+0.10)^{5} = 5000×1.61051 = $8052.55

(d) 10% compounded semiannually

Interest is compounded semiannually

No of periods in 5 years is 5*2 = 10

Rate per period = 10÷2 = 5%

Future value =5000(1+0.05)^{10} = 5000×1.62889 = $8144.45

(e) 10% compounded quarterly

Interest is compounded annually

∴No of periods in 5 years = 5×4 = 20

Rate per period = 10÷4 = 2.5

Future value = 5000(1+0.025)^{20} = 5000×1.63862 = $8193.10

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Answer:

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Explanation:

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4 0
3 years ago
Describe two factors that have led to the greater interconnectedness of countries.
fomenos

Answer:

1. Liberalization of foreign trade and foreign investment policies

2. Information technology

Explanation:

1. Liberalization of foreign trade and foreign investment policies. Trade liberalization means removing constraint or impediments to free flow of trade among countries in the world. It enables import and export to take place hence led to interconnectedness of countries.

Also, foreign companies are allowed and able to locate their business outlet in their host country. Due to foreign investment policies, there is fusion of market and production thus leading to interconnectedness of countries.

2. Information technology. Constant improvement in information technology has led to interconnectedness of countries. For instance, the use of internet(social media) comes at a lower cost hence messages can be sent from a remote area and goes viral around the world immediately it is sent.

Also telecommunication gadgets such as mobile phones, telegraphs, fax connects people and business across several race and continents.

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3 years ago
The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A c
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6.8  will be the debt-to-EBITDA ratio.

EBITDA* 8.5=Transaction Value

(Transaction value * 0.8) / EBITDA = 6.8

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.

This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.

Learn more about the debt-to-income ratio here: brainly.com/question/24814852

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Which of the following statements about depreciation is correct?
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Answer:

The correct answer is letter "C": To calculate the cash produced by the business, it is necessary to add the depreciation charge back to accounting profits.

Explanation:

Depreciation indicates how much value was used up for an asset. It also tries to match an asset's cost to the profit this helps the business collect. Depreciation calculations used as income tax deduction offer companies and annual allowance for the use and deterioration of tangible assets. Besides, depreciation must be added to the company's accounting profits to determine the firm's total inflow.

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Which of the following is an advantage to belonging to a labor union?
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Some advantage of Labor union for workers are:

  1. Its helps to protect the interest of workers.
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<em>brainly.com/question/453055</em>

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