Answer:
Difference= $3,090.15 in favor of compounded interest
Step-by-step explanation:
Giving the following information:
Present value (PV)= $8,500
Ineterest (i)= 0.025/12= 0.00208
Number of periods (n)= 360 months
<u>We will calculate the future value of each option and determine the difference:</u>
<u>Simple interest:</u>
FV= (PV*i*n) + PV
FV= (8,500*0.00208*360) + 8,500
FV= $14,864.8
<u>Compounded interest:</u>
FV= PV*(1+i)^n
FV= 8,500*(1.00208^360)
FV= $17,958.95
Difference= $3,090.15
Answer:
Rule by a small group : Oligarchy
Rule by Citizens : Democracy
Rule by No one Anarchy
Rule by king or Queen : Monarchy
Answer:
<h2>The constant growth valuation formula is not appropriate to use unless the company’s growth rate is expected to remain constant in the future.</h2>
Step-by-step explanation:
The value of a stock can be calculated with the <em>constant growth valuation formula</em>, but it's mandatory that the stock has to have a constant growth, because it depends on this rate. Actually, the present value of a stock is calculated with this formula <em>when it can be assumed that its growth is constant.</em>
On the other hand, if the stock value is zero, if it has no growth at all, then, this formula can't be applied, because this variable will be missing.
If you see the image attached, you're gonna look for <em>'g'</em>, which represents the growth rate.
The number of years it would take sales to reach $1,750,000 is 14.65 years.
<h3>What is the number of years?</h3>
The formula that can be used to determine the number of years it would take for the sales to reach $1,750,000 is:
Number of years : In (FV / PV) / r
Where:
- FV = future level of sales - $1,750,000
- PV = present level of sales = 850,000
- r = rate of growth - 4.931998%
Number of years : In ($1,750,000 / 850,000) / 0.04931998
Number of years : In (2.06) / 0.04931998
Number of years : 14.65 years
To learn more about how to determine the number of years, please check: brainly.com/question/21841217
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<h3>
Answer: Choice C) x^4 - 2</h3>
Explanation:
If the exponent is negative, then that means we apply the reciprocal. So something like x^(-2) becomes 1/(x^2). A polynomial cannot have a variable in the denominator like this. So we can rule out choices A, B, and D. Choice C is the only thing left. It is a polynomial because the exponent is a positive whole number.
