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ziro4ka [17]
3 years ago
12

Bill wants to give Maria a $630,000 gift in 3 years. If money is worth 6% compounded semiannually, what is Maria's gift worth to

day?
Business
1 answer:
olga_2 [115]3 years ago
5 0

Answer:

$527,615.08

Explanation:

The formula that describes the present value of an investment compounded semiannually is:

PV = \frac{FV}{(1+\frac{r}{2}^{(2*t)})}

For a future value of $630,000 obtained at a 6% annual rate for 3 years, the present value is:

PV = \frac{630,000}{(1+\frac{6}{2}^{(2*3)})}\\PV=\$527,615.08

Maria's gift is worth $527,615.08 today.

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If there is an unanticipated increase in aggregate demand, which of the following is most likely to occur?
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Answer:

A. an increase in the price level (inflation)

Explanation:

When there is an unanticipated increase in aggregate demand it usually result in the general increase in the price level of that good demanded (inflation). This is because when there is an unpredicted increase in demand for a good, the demand becomes higher than the supply for that good at that particular period. Because the supply is now less than the aggregate demand, the prices of the commodity is then increased to discourage demand. The increase in the price of the commodity (inflation) therefore is a direct result from the increase in the aggregate demand for that commodity.

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In this statement, which type of spending is President
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<u>Answer: </u>Option 2 discretionary

<u>Explanation:</u>

Spending can be mandatory spending or discretionary spending. Mandatory spending means the spending on essentials goods such as food. Discretionary spending means the spending on recreation and entertainment where people have additional money in hand after meeting their necessary expenses.

In this speech Obama speaks about the non essential expenses when they are controlled more investments can be made. He says when all the departments cut down their discretionary expenses then can result in economic growth.

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All of the following are potential consequence of not paying debts on time EXCEPT
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Yesterday a transformer in tenisha’s neighborhood blew and her entire block lost electricity. because she must upload her week 4
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3 years ago
Your father is now planning to retire, and his employer has promised him a guaranteed, but fixed, income of $50,000 per year for
ohaa [14]

Answer:

(C) 18,844.47

Explanation:

You need to use the  Inflation-Adjusted Return formula:

InflationAdjustedReturn=\frac{1+return}{1+inflationrate}-1

So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process

InflationAdjusted ReturnYear1=\frac{1+return}{1+inflationrate}-1=\frac{1+50000}{1+0.05}-1=47,619

InflationAdjusted ReturnYear2=\frac{1+returnyear1}{1+inflationrate}-1=\frac{1+47,619}{1+0.05}-1=45,351

InflationAdjusted ReturnYear3=\frac{1+returnyear2}{1+inflationrate}-1=\frac{1+45,351}{1+0.05}-1=43,192

And so on...

InflationAdjusted ReturnYear20=\frac{1+returnyear19}{1+inflationrate}-1=\frac{1+19,787}{1+0.05}-1=18,844

Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer

Online calculator:

https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/

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