All categories

3 years ago

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually.

Business

1 answer:

aleksley [76]3 years ago

3 0

Answer:

a) Future Value = $530

b) Future Value = $561.8

c) Present Value =$566.037

d) Present Value =$533.99

Explanation:

FV = PV × (1+r)^n

FV -future Value , r- interest rate,n- number of years , PV-present Value

FV = 500 ×(1.06)^1 =

Future Value = $530

FV = 500 × 1.06^2 =

Future Value = $561.8

c) Present Value

PV = FV × (1+r)^(-n)

PV = 600 ×1.06^(-1)=566.037

Present Value =$566.037

PV = FV × (1+r)^(-n)

FV -future Value , r- interest rate,n- number of years , PV-present Value

PV = 600 ×1.06^(-2) = 533.99

Present Value =$533.99

a) Future Value = $530

b) Future Value = $561.8

c) Present Value =$566.037

d) Present Value =$533.99

You might be interested in

You have a better chance at success in the business world when your interest and personality match the career choice. True False

enot [183]

this is true. Personality and interest are two factors that relate to career success.

4 0

3 years ago

Read 2 more answers

How are most travel itineraries arranged?

bekas [8.4K]

Event by event so you know the schedule

4 0

3 years ago

Which of the following statements about the relationship between interest rates and bond prices is true? I) There is an inverse

BaLLatris [955]

Answer: A. I and IV only

Explanation:

The relationship between bond prices and interest is an inverse one. This is because bonds have fixed rates so when for instance interest rates increase, the fixed rate of bonds will become less attractive as people would want to make the higher interest. They will therefore demand less of bonds and the prices will drop. The reverse is true.

Also, long term bonds are more affected by interest rate changes then short term bonds. This is because, as they have a longer term till maturity, they will be even less attractive when interest rates rise.

7 0

3 years ago

Browning's has a debt-equity ratio of .47. what is the equity multiplier?

jek_recluse [69]

A. 1.47

Have a good night

4 0

3 years ago

Which of the following taxpayers may not use the standard mileage method of calculating transportation costs? a. A self-employed

frozen [14]

Answer:

The correct answer is (E)

Explanation:

A standard method of calculating transportation cost is used to maintain equality among organisations. This method is applied to all the workers and government employees, but it has some rules and regulations. If an employee for example attorney is using his vehicle for calling on clients is fine as long as the car average fuel consumption is standard. For example, if an attorney used his Tesla for calling on clients is not a standard way which is why transportation cost will not be calculated by the standard mileage method.

4 0

4 years ago