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Gelneren [198K]
3 years ago
13

If you need $20,000 in your bank account in 6 years, how much must be deposited now? The interest rate is 10%, compounded contin

uously.
Business
1 answer:
denpristay [2]3 years ago
5 0

Answer:

$11,289.48

Explanation:

The computation is shown below:

Given that

Amount = $20,000

Time period = 6 years

Interest rate = 10%

For this question, we use the formula that is presented below:

A = P × (1 + r)^n

where,

A = Amount

P = Principal

r = rate

t = time period

So,

$20,000 = P × (1 + 0.10)^6

$20,000 = P × 1.771561

So, P equal to

= $11,289.48

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Answer:

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3 years ago
Gary is the marketing manager for an automobile dealership. his boss tells him the firm's primary goal is to increase its local
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3 years ago
Levi's Levees always evaluates projects using the payback method. What is the payback period for the following set of cash flows
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Answer:

3.14 years

Explanation:

Year              Cash flow                Accumulated cash flows

0                    -$4,900                            -$4,900

1                       $1,150                             -$3,750

2                      $1,350                            -$2,400  

3                     $2,230                                -$170

4                     $1,250                              $1,080

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7 0
3 years ago
What happens to each company's net income if sales increase by 20%?
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The company's net income will grow higher if it increases by 20% and then it will just keep getting higher and higher. Hope this helped, have a great day! :D
8 0
3 years ago
If a proposed expenditure of $80,000 for a fixed asset with a 4-year life has an annual expected net cash flow and net income of
Whitepunk [10]

Answer: a. true

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Cash payback period = Investment/ Cash inflow

= 80,000/32,000

= 2.5 years

<em>Statement is proven true. </em>

6 0
3 years ago
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