Answer:
Present value (PV) = $1,000
Interest rate (r) =8% = 0.08
Number of years (n) = 18 months = 1.5 years
No of compounding periods in a year = 4
Future value (FV) = ?
FV = PV(1 + r/m)nm
FV = $1,000(1 + 0.08/4)1.5x4
FV = $1,000(1 + 0.02)6
FV = $1,000 x 1.1262
FV = $1,126
Explanation:
The amount to be received in 18 months is $1,126. This is obtained by compounding the present value at 8% compounded quarterly for 18 months. The formula to be applied is the formula for future value of a lump sum(single investment).
Answer:
The correct answer is letter "A": The amount that would be paid today to receive a single amount at a specified date in the future.
Explanation:
The present value (PV) of a single sum tells us how much a future sum of money is worth today given a specified rate of return. This is an important financial concept based on the principle that money received in a specific time in the future is not worth as much as an equal sum received today.
Answer:
Letter B is correct.<u> Method of authotity.</u>
Explanation:
The method of acquiring knowledge by authority is one of the most widespread ways of obtaining knowledge in society. It is characterized as the implementation and learning of a new idea or belief because some authority figure affirmed a certain concept as true, which ensures greater reliability. and acceptance. As examples of authorities, we can mention: doctors, teachers, bosses, government, parents and others.
But in an ideal scenario it is important to analyze what methods and sources the authority figures have determined for a conclusion about something, one should seek to exercise critical sense to rationalize the beliefs and decisions that are imposed as truth. .
To the nearest dollar, it would cost $3,564