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Anuta_ua [19.1K]
4 years ago
14

8000 dollars is placed in an account with an annual interest rate of 7%. To the nearest tenth of a year, how long will it take f

or the account value to reach 53900 dollars?
Business
1 answer:
Luden [163]4 years ago
5 0

Answer:

273.48 tenths of years

Explanation:

This is a Time Value of Money (TVM)First, convert the annual interest rate to a tenth of a year rate;

= 7% *(1/10) = 0.7%

Interest rate ; I/Y  = 0.7%

Present value; PV = -8000

Future value ; FV = 53900

Recurring payment; PMT = 0 (since this is not an annuity)

then compute the duration; CPT N = 273.48 tenths of years

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Answer:

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Explanation:

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As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.

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