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mr_godi [17]
3 years ago
5

On the day of a child's birth, a parent deposits $35,000 in a trust fund that pays 4% interest, compounded continuously. Determi

ne the balance in this account on the child's 24th birthday. (Round your answer to two decimal places.)
Business
2 answers:
Dmitrij [34]3 years ago
6 0

Answer:

$91,409

Explanation:

Balance = 35000*e^(0.04*24)=$91409

BlackZzzverrR [31]3 years ago
6 0

Answer:

$91,409 .32

Explanation:

the formula used to calculate continuously compounded interest:

A = Peˣⁿ

where:

  • A = future value = ?
  • P = principal = $35,000
  • e = mathematical constant = 2.71828
  • x = interest rate = 4% = 0.04
  • n = periods = 24 years

A = $35,000 x 2.71828⁰°⁰⁴ˣ²⁴ = $35,000 x 2.71828⁰°⁹⁶ = $35,000 x 2.61169 = $91,409.32

Continuously compounding interest means that your money and earned interest is earning interest all the time, i.e. it is continuously compounding infinitely many times per year.  

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1. A creditor's claim to the property of an individual or business is called
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Answer:

c. liabilities.

Explanation:

liabilities are the creditors claims to the assets of the business/property.

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2 years ago
When a closed economy is in equilibrium, we know with certainty that
faust18 [17]

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inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

4 0
2 years ago
What is capitol gain?
Triss [41]

Explanation:

  • It is the amount of profit gained by the organization by selling the stock, bond or other real estates.
  • If the value of selling price is higher than the cost price then it means that the capital gain is achieved.
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5 0
3 years ago
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible i
azamat

Answer:

Investment in stock C is $122450.3311 rounded off to $122450.33

Explanation:

A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:

Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N

Where w represents the weight of each stock in the portfolio.

Let investment in stock C be x

1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51

1 = 0.26572  +  0.36448 + 1.51x / 500000

1 - 0.6302 = 1.51x / 500000

0.3698 * 500000 = 1.51x

1844900 / 1.51 = x

x = $122450.3311 rounded off to $122450.33

4 0
3 years ago
In the month of October, Tran Incorporated had salaries of $15,000 for factory managers, $18,000 for financial managers, and $42
Sloan [31]

Answer:

The correct answer is C.

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Giving the following information:

$15,000 for factory managers

$18,000 for financial managers

$42,000 for company executives.

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$64,000 for office workers.

To calculate the labor cost we need to separate between indirect and direct labor:

Indirect labor:

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Direct labor:

Factory workers= 98,000

Total labor cost= $113,000

7 0
3 years ago
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