Answer:
P = $1664.12 pay with 9% compounded monthly
P = 1652.98 pay with 9% compounded continuously
Explanation:
given data
time period = 20 year
amount = $10000
solution
we get here compound interest for 9% compounded monthly that is express as
FV = .................1
here P is principal amount and r is interest rate and n compound in year and FV is future value
$10000 =
solve it we get
P = $1664.12 pay with 9% compounded monthly
and
for 9% compounded continuously
FV = ............2
$10000 = P\times e^{0.09\times 20}
solve it we get
P = 1652.98 pay with 9% compounded continuously
Answer:
The tax rate is the same for all income levels.
Explanation:
A proportional tax system is a tax mechanism that applies equal rates to all income brackets. This system does not segregate based on income earned. The proportional tax system is also the flat rate system.
Since the proportional tax system applies the same rate to all taxpayers, it means that the low income, middle, and high-income earners pay tax at the same rate. The proportional tax system contrasts with other methods, such as the progressive tax system that considers income levels.
Answer:
The prize is worth 4.26 million dollars today.
Explanation:
Giving the following information:
Cash flow= $500,000
Interest rate= 10% compounded annually
Number of years= 20
First, we will calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500,000*[(1.10^20) - 1]} / 0.10
FV= $28,637,499.75
Now, the present value:
PV= FV/(1+i)^n
PV= 28,637,499.75/1.10^20
PV= $4,256,781.86
The prize is worth 4.26 million dollars today.
Answer:
$12,500
Explanation:
Assets are classified under current and fixed categories. Among items that Granger owns, a boat is an asset; specifically a fixed asset since it can be utilized over a year. Same reason for a car, which is also a fixed asset. Tools help in operating a business hence considered fixed assets as they can be utilized for more than a year. The total value of assets is (4000+8000+500)
Total value = $12,500