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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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Answer:

optimistic call objective.

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7 0
3 years ago
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4 years ago
Last year, you set aside an advertising budget of $5,000 to place ads in different newspapers, social media platforms, and the l
aleksandrvk [35]

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<h3>How much do you spend on advertising?</h3>

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Find out more on budget variance at brainly.com/question/25625268.

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3 years ago
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iVinArrow [24]

Explanation:

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6 0
4 years ago
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