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Crank
3 years ago
15

You plan to make six equal, end-of-year deposits over the next six years into an account that will pay you 7% interest annually.

the first deposit will occur one year from today and the last will occur six years from today. if you need to have $2,000 in the account at the end of 6 years, how much do you need to deposit at the end of each year in order to have the required amount?
Business
1 answer:
irga5000 [103]3 years ago
6 0
The answer is $27.70 a year
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Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

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(Being the issuance of the common stock is recorded)

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Therefore, the cash account and the common stock is increased.

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3 years ago
1. Given the nominal interest rate of 17​% and the expected inflation of 13​%, then the value of the real interest rate is ___ ?
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Answer:

According to fisher equation

(1+nominal Interest rate)=(1+real interest rate)(1+inflation)

1) So 1.17=(1+R)(1.13)

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R=0.0353

Real interest rate = 3.53 percent

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NIR= 0.072

Nominal interest rate = 7.2 percent

A lender prefers a higher real interest rate as he will earn more money on the amount he has lend if the real interest rate is higher.

A borrower will prefer a lower real interest rate as he will have to pay lower interest payments on an amount if the real interest rate is lower.

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3 years ago
Distinguish between the substitution and income effects of a price change. If a good’s price increases does each effect have a p
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Read more: What's the difference between the income effect and the substitution effect? | Investopedia http://www.investopedia.com/ask/answers/041415/whats-difference-between-income-effect-and-substitution-effect.asp#ixzz4wcsy3IOK
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3 years ago
Outlines give you a chance to organize your thinking before determining word choice and sentence structure.
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a. Make each sub-point exclusive

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Outline is a type of table of content that helps a reader to understand the scenario of the overall article or piece. Making an effective outline is a challenging task. However, the following things certainly can make an effective outline.

Putting the main idea in the title is one of them. Under the title, break the topic or title into major components (Option F). Using sub-points make the piece more relevant (Option A). Besides, moving sub-points to larger group or components make the article beautiful (Opposite of Option B). Do not separate the main topic from the title make an outline unclear (Opposite of Option D).

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Answer:a.

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