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pochemuha
3 years ago
5

Bill O’Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He

has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $26,600. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What interest rate, compounded annually, must Bill earn to accumulate enough to pay for the trip? (Round your interest rate to the nearest whole percentage.)
Business
1 answer:
Maurinko [17]3 years ago
8 0

Answer:

10%

Explanation:

Use future value formula

Future Value =  Present Value ((1+r)^n)

26,600 =  20,000 ((1+r)^3

26,600/20,000 = (1+r)^3

1.33 = (1+r)^3

1.33^1/3 = 1+r

1.0997 = 1+r

1.0997 - 1 = r

r = 0.997 = 9.97% = 10% (rounded of to the nearest whole percentage)

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The virtual organization is what is being used by Sally, Greg, John, and Amar in the question above.

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4 years ago
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a
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Answer:

The bond will sell for the amount of $869.17

Explanation:

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3 years ago
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4 0
3 years ago
Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $165
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Answer:

$3,500

Explanation:

Placing a stop-loss order at $165 means that the last amount that the stock traded, it had a price of $165 per share.

Based on that, it is evident that each stock has lost $35 when compared to the price at which the stop-loss order was placed and the initial cost per share of $200.

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(TCO 2) An object of interest to the end user is
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3 years ago
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