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Harman [31]
4 years ago
10

Spartan Credit Bank is offering 7.6 percent compounded daily on its savings accounts. You deposit $6,000 today. How much will yo

u have in the account in 5 years, 10 years, 20 years?
Business
2 answers:
bulgar [2K]4 years ago
6 0

Answer:

FV in 5 years $8,654

FV in 10 years $12,482

FV in 20 years $25,965

Explanation:

Future value is the amount that includes the principal amount invested and interest earned on this amount including the compounding effect.

Formula for Future value is as follow

FV = PV ( 1 + r )^n

Where

PV = Present value = $6,000

r = rate of interest = 7.6%

FV= Future Value

5 years

n = numbers of year = 5

FV = $6,000 (1 + 7.6%)^5 = $8,654

10 years

n = numbers of year = 10

FV = $6,000 (1 + 7.6%)^10 = $12,482

20 years

n = numbers of year = 20

FV = $6,000 (1 + 7.6%)^20 = $25,965

Tju [1.3M]4 years ago
6 0

Answer:

5 years = $8777.36

10yeras = $12,828.64

20years = $27,429.01

Explanation:

Future Value(FV) =?

INTEREST RATE= 7.6% daily = (0.076/365)

Present value = $6,000

A) Future value in 5 years

FV = PV ×(1 + r)^n

FV = $6000 × (1 + (0.076/365))^(5×365)

FV = $6000 ×1.462226748225

=$ 8,773.36

B.) 10 years

FV = $6000 × (1 + (0.076/365))^(10×365)

FV = $6000 × 2.138107063225316

FV = $12,828.64

C. 20 years

FV = $6000 × (1 + (0.076/365))^(20×365)

FV = $6000 × 4.5715018138139866

FV = $27,429.01

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Answer:

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Explanation:

Please check the answer section.

6 0
3 years ago
A company bills customers for services provided. the company records this transaction with a:_______
geniusboy [140]

A company bills customers for services provided. the company records this transaction with a  Debit Accounts Receivable.

A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.

The definition of a customer is a person who purchases products or services at a store, restaurant, or other retail establishment. An example of a customer is someone who goes to an electronics store and buys a television. (informal) A person, especially a person, who interacts with others in some way.

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6 0
1 year ago
The ________ allows a company to capture the highest economies of scale.
Klio2033 [76]
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3 0
3 years ago
Ken makes a monthly income of $3000 after taxes. Every month, he spends 40% of his income on clothing. How much money does Ken s
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$1200
 
7 0
4 years ago
You are offered a chance to buy an asset for $200,500 that is expected to produce cash flows of $100,000 at the end of Year 1, $
Lapatulllka [165]

Answer:

What rate of return (IRR) would you earn if you bought this asset?

8,48%

Explanation:

To find the IRR it's necessary to know which is the discount rate that applied to the cash flow of the assets gives a value that compensate the investment of $200,500.

Year 1   $100.000  / (1+0,0848)^1    =  $92.182    

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$92.182  + $35.690 + $41.398 + $31.230 =  $200,500

There is no way to find the IRR without Excel, the only way is to try with different rates in the current cash flow formula.

3 0
3 years ago
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