What are 3 places an investigative person might want to work

For a given single sum invested at 8% for four years, how will the future value be affected if the compounding period is changed

Lorico [155]

Answer:

Future Value will increase

Explanation:

Future Value = Present Value (PV)*(1 + i)^n

Let Amount be $10,000

Interest = 12% compounded annually

Period = 4

Future Value = $10,000 * (1 + 12%)^4

Future Value = $15,735.19

Let Amount be $10,000

Interest = 12% compounded quarterly

Period = 4 (4*4)

Future Value = $10,000*(1 + 3%)^16

Future Value = $16,047.06

Conclusion: The future value will increase.

5 0

3 years ago

On January 1, 1980 Moses deposit $1850 into a savings account paying 5.6% interest compounded quarterly if he hasn’t made any ad

artcher [175]

Answer: 12.86 years.

Explanation: Rule of 72 says that to know in how many years the amount can double can be done by using the interest rate. The rule of 72 says that 72 divided by the annual interest rate will give the number of years it will take to double the amount.

Rule of 72:

Rate of interest = 5.60%/4

Number of years to double the investment = 72 ÷ 1.4

Number of years to double the investment = 51.43/4 = 12.86 years

Therefore, it will take 12.86 years for the $1850 to get double to $3700.

4 0

3 years ago

Read 2 more answers

The basic message of _____ is that potential world production is greater with unrestricted free trade than it is with restricted

antiseptic1488 [7]

Lets talk about all the terms. First of all, zero-sum game theory and rational choice theory are mathematical theories that are used to analyze financial phenomena. The first one is against this view and the second one is a general framework that does not say what its stance is; it is certainly not the basic message of rational choice theory. The mercantilist theory is a theory that favors trade restrictions, so this is not the right choice. THe theory of absolute and comparative advantage are related; the first one says that only a country can make a product in a good way, while the second theory claims that eeach country should specialize in what it is best at producing. The comparative advantage theory makes the case that if there are many goods, one should not need to bother to produce those which he is bad at producing; he should produce a surplus of his specialty and then trade with others (and their specialty products). Thus, comparative advantage is the correct choice.

3 0

3 years ago

The following data are for a series of increasingly extensive flood control projects:

igomit [66]

Answer:

b. $28,000 and $12,000 respectively

Explanation:

The marginal cost and marginal revenue refers to the additional cost or revenue that is generated for adding an additional unit or increasing the ouput by one unit,

In thi case, moving to Large reservoir from Medium reservoir

Marginal cost: 72,000 - 44,000 = 28,000

It cost 28,000 to move to a large reservoir

Marginal revenue :64,000 - 52,000 = 12,000

It generates additional benefit for 12,000

8 0

3 years ago

The following transactions took place for Smart Solutions Inc. 2017 a. July 1 Loaned $79,000 to an employee of the company and r

OLEGan [10]

Answer:

a.

1 July 2017 Notes receivable $79000 Dr

Cash $79000 Cr

b.

31 Dec 2017 Interest receivable $3950 Dr

Interest revenue $3950 Cr

c.

30 June 2018 Interest receivable $3950 Dr

Interest Revenue $3950 Cr

1 July 2018 Cash $7900 Dr

Interest receivable $7900 Cr

d.

1 July 2018 Cash $79000 Dr

Notes receivable $79000 Cr

Explanation:

a.

The receipt of note against issuing loan will cause a credit to cash against notes receivable.

b.

The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.

The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950

c.

First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950

Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.

d.

The cash will be debited and notes receivable account will be closed by crediting it.

8 0

3 years ago