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Y_Kistochka [10]
3 years ago
11

Your brother has asked you to help him to choose an investment. He has $6,000 to invest today for a period of two years. You ide

ntify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years?
Business
1 answer:
kramer3 years ago
3 0

Answer:

$ 6, 529.40

Explanation:

The value of the investment will be the future value of $6000 invested at 4.25 percent compounded quarterly for two years.

The formula for calculating the future is as below.

FV = PV × (1+r)n

where FV = Future Value

PV = Present Value : $6000

r = annual interest rate: 4.25 % divide by four

n = number of periods: 8 (2 x 4)

Since interest is paid quarterly or four times per year, the applicable interest rate will be 4.25 /4 = 1.0625%

There will be 8 periods( 4 quarters per year x 2)

Fv = 6000 x (1 + 1.0625/100)8

Fv =6000 x (1+ 0.010625)8

Fv =6000 x 1.08822900

Fv= 6529.3740

FV= $ 6, 529.40

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Acme Enterprises began the new year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this
Sedaia [141]

Answer:

Acme's current balance of accounts payable is $6000

Explanation:

The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.

The closing balance can thus be calculated as:

Closing balance = Opening balance + Credit purchases - Payment to Accounts payable

Closing balance = 3000 + 4000 - 1000

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Which of these is not something to consider when trying to get a positive return on investment (roi) for higher education?
Fantom [35]

Something not to consider when trying to get a positive return on investment (ROI) for higher education is: c. the type of food that is offered on the meal plan.

<h3>What is rate of return?</h3>

Rate of return can be defined as a net gain (profit) or loss that is associated with an investment over a specified period of time, and it's usually expressed as a percentage of the investment's initial cost.

This ultimately implies that, the rate of return must be higher than the rate of inflation in order for any business firm or individual to earn money on their investments.

Also, a positive return on investment (ROI) entails a net gain (profit) from an investment over a specified period of time. This ultimately implies that, the type of food that is offered on the meal plan isn't something to consider when trying to get a positive return on investment (ROI) for higher education.

Read more on return on investment here: brainly.com/question/23603222

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Complete Question:

Which of these is not something to consider when trying to get a positive return on investment (ROI) for higher education?

a. The cost of attendance.

b. The financial aid package that is offered to you.

c. The type of food that is offered on the meal plan.

d. Your expected career income.

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