A firm sells two products, Regular and Ultra. For every unit of Regular sold, two units of Ultra are sold. The firm's total fixe
1 answer:
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Answer:
$13,316.54
Explanation:
Data provided in the question:
Inflation rate, i = 1.2% = 0.012
Deposits = $11,000
Interest rate, r = 6% = 0.06
Time, t = 4 years
since compounded monthly, number of periods n = 12
Now,
Future value of money with the interest
= Deposits ×
= $11,000 ×
= $13,975.38
Considering the inflation,
Amount after 4 years = Future value × [1 - i ]ⁿ
= $13,975.38 × [1 - 0.012]⁴
= $13,316.54
Let P = the principal
The apr is r = 15.21% = 0.1521
The compounding interval is n = 365
The time is t = 1 year
The value after 1 year is
That is,
A = P(1 + 0.1521/365)³⁶⁵ = 1.1642P
The interest is 1.1642P - P = 0.1642P
The effective percent interest rate is
100(0.1642P/P) = 16.42%
Answer: 16.42%
The apr is r = 15.21% = 0.1521
The compounding interval is n = 365
The time is t = 1 year
The value after 1 year is
That is,
A = P(1 + 0.1521/365)³⁶⁵ = 1.1642P
The interest is 1.1642P - P = 0.1642P
The effective percent interest rate is
100(0.1642P/P) = 16.42%
Answer: 16.42%