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Natasha2012 [34]
3 years ago
15

Calculate the future value of $1,000 in a. Four years at an interest rate of 7% per year. b. Eight years at an interest rate of

7% per year. c. Four years at an interest rate of 14% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? b. Eight years at an interest rate of 7% per year. The future value of $1,000 in 8 years at an interest rate of 7% per year is (Round to the nearest dollar.) c. Four years at an interest rate of 14% per year. The future value of $1,000 in 4 years at an interest rate of 14% per year is (Round to the nearest dollar.) d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? (Select the best choice below.) A. This results because you earn interest on past interest. Since more interest has been paid at the end of the time period than at the beginning, the money grows faster. B. The interest earned in part (a) is based on a lower effective annual interest rate. C. The annual interest rate in part (b) is slightly higher than the rate assumed in part (a). This is because of compounding D. The amount of interest earned in part (a) is really half of the amount of interest earned in part (b) since in part (b) the money grows for twice as many years as in part (a).
Business
1 answer:
sergij07 [2.7K]3 years ago
7 0

Answer:

We need to use the future value of an investment formula:

F = PV (1 + i)^{n}

Where:

  • F = Future value
  • PV = Present value
  • i = interest rate
  • n = number of compounding periods

a. Four years at an interest rate of 7% per year.

F = 1,000 (1 + 0.07)^{4} \\F = 1,310

b. Eight years at an interest rate of 7% per year.

F = 1,000 (1 + 0.07)^{8\\\\

F = 1,718

c. Four years at an interest rate of 14% per year.

F = 1,000 (1 + 0.14)^{4} \\F = 1,688

d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

The correct answer is A.

Because compound interest capitalizes. This means, that the interest earned in the first year becomes part of the principal, and from that increased principal amount, the new interest rate for the second year is calculated.

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In business proposal Jean must present his innovation, market research, customer segments, entrepreneur ecosystem in which the business would operate. The marketing strategy, sales forecasting on well researched market research which provides solid grounds for forecasting, future targets, etc. So these all things must be considered while writing. I have prepared a business proposal and worked as a market researcher for that business proposal, traveled 300km for gathering market research. Paper work is nothing in startup. Everything is your market research, understanding your customers, competitors and costs that are associated with the products that we are going to offer.

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A company pays $35,000 per period to rent a small building that has 12,000 square feet of space. This cost is allocated to the c
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Explanation:

As the question says, a total of $35,000 is paid for 12,000 square feet of space and that the rent is apportioned on the basis of space.

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Answer:

i am not sure for the first one, but for the second its a corporation

Explanation:

there are a lot of regulations connected with corporations and the taxation of these organizations

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