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kompoz [17]
3 years ago
10

Your client invested $10,000 in an interest-bearing promissory note earning an 11% annual rate of interest, compounded monthly.

How much will the note be worth at the end of 7 years, assuming that all interest is reinvested at the 11% rate
Business
1 answer:
REY [17]3 years ago
7 0

Answer:

The correct answer is $21,522.04.

Explanation:

According to the scenario, the given data are as follows:

Present value = $10,000

Rate of interest  = 11%

Rate of interest (r) ( compounded monthly) = 11% ÷ 12 = 0.00916

time period  = 7 years

Time period ( compounded monthly) (t) = 7 × 12 = 84

So, we can calculate the future value by using following method:

FV = PV × ( 1 + r)^t

By putting the value, we get,

FV = $10,000 × ( 1 + 0.00916)^84

FV = $21,522.04

You might be interested in
A company assigns overhead cost to completed jobs on the basis of 113% of direct labor cost.the job cost sheet for job 313 shows
Zielflug [23.3K]

A) total manufacturing cost
10,500×(113÷100)=11,865

B) total manufacturing cost
27,235+10,500+11,865=49,600
the unit product cost for job 313
49,600÷1,600=31

Hope it helps!

4 0
3 years ago
Bakers corp will pay a dividend of 5.15 8.05 and 11.25 per share for each of the next three years respectively. the company will
Pani-rosa [81]

Answer: $19.40

Explanation:

Based on the information given in the question, the following can be deduced:

D1 = $5.15

D2 = $8.05

D3 = $11.25

Rate of return = 11% = 0.11

The current stick price will be calculated as:

= 5.15/(1 + 0.11) + 8.05/(1 + 0.11)^2 + 11.25/(1 + 0.11)^3

= 5.15/1.11 + 8.05/(1.11)^2 + 11.25/(1.11)^3

= $4.64 + $6.53 + $8.23

= $19.40

5 0
3 years ago
Sager Industries is considering an investment in equipment that will replace direct labor. The equipment has a cost of $86,000 w
PtichkaEL [24]

Answer:

130.77%

Explanation:

depreciation expense per year using straight method = (purchase cost - salvage value) / useful life = ($86,000 - $7,000) / 10 = $7,900

total costs = depreciation expense + operating and energy costs = $7,900 + $4,190 = $12,090

average rate of return = total savings / total costs = $15,810 / $12,090 = 1.30769 = 130.77%

7 0
2 years ago
One reason some economists doubt that patent protection encourages innovation is that economic studies show that inventors recei
makkiz [27]

Answer:

one-third to one-half; already had patents

Explanation:

One reason some economists doubt that patent protection encourages innovation is that economic studies show that inventors receive only one-third to one-half of the total economic value of their inventions in countries that already had patents.

4 0
3 years ago
McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively. If it
fomenos

Answer:

Total= $107,130.79

Explanation:

Giving the following information:

McClary Tires plans to save $20,000, $25,000, $27,500, and $30,000 at the end of each year for Years 1 to 4, respectively.

The discount rate is 3.3%.

To calculate the future value, we need to use the following formula for each cash flow:

FV= PV*(1+i)^n

Cf1= 20,000*1.033^3= 22,046.06

Cf2= 25,000*1.033^2= 26,677.23

Cf3= 27,500*1.033= 28,407.5

Cf4= 30,000

Total= $107,130.79

4 0
3 years ago
Read 2 more answers
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