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mamaluj [8]
4 years ago
8

You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for t

he next 3 years, and 4.3 percent for the final 7 years. How much do you have to deposit today
Business
1 answer:
melomori [17]4 years ago
3 0

Answer:

PV= 19,042.84

Explanation:

Giving the following information:

You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for the next 3 years, and 4.3 percent for the final 7 years.

<u>To calculate the initial deposit, we need to use the following formula for each interest rate:</u>

<u></u>

PV= FV/(1+i)^n

<u>Last 7 years:</u>

PV= 32,000/(1.043^7)

PV= $23,831.96

<u>Year 4 - 7:</u>

PV= 23,831.96/1.036^(3)

PV= 21,432.88

<u>Finally, for year 0 to 4:</u>

PV= 21,432.88/ 1.03^(4)

PV= 19,042.84

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A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.

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3 years ago
Suppose that an industry is characterized as follows: C  100  2q2 each firm’s total cost function MC  4q firm’s marginal cost
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In a department meeting, javier shares some research on new software he thinks the company should purchase. roger agrees with ja
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3 years ago
1. Which of the following questions would be permissible to ask during an interview with a candidate who
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I would say the first one

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7 0
3 years ago
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