1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sergio [31]
3 years ago
13

Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. If he can earn 7 percent on any investme

nt that he makes, what is the future value of his investment cash flows at the end of three years
Business
2 answers:
artcher [175]3 years ago
6 0

Answer:

Total future value= $16,402.09

Explanation:

Giving the following information:

Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. He can earn 7 percent on any investment that he makes.

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

FV= PV*(1+i)^n

Year 1= 4,450*1.07^3= 5,451.44

Year 2= 4,775*1.07^2= 5,466.90

Year 3= 5,125*1.07= 5,483.75

Total future value= $16,402.09

erastova [34]3 years ago
3 0

Answer:

$15,329

Explanation:

year            cash flows     future value year 3

  1                   $4,450        x 1.07² = $5,094.81

  2                  $4,775         x 1.07 = $5,109.25

 <u> 3                  $5,125              x 1 = $5,125         </u>

                                                $15,329.06

if you want to check if the answer is correct, use an excel spreadsheet and first determine the present value of the 3 cash flows =NPV(7%,4450,4775,5125) = $12,513.08 and then multiply by 1.07³ to get the future value = $15,329.06

You might be interested in
is the person responsible for the business value of the project and for deciding what work to do and in what order when using a
Romashka-Z-Leto [24]

Answer:

product owner

Explanation:

The Scrum method is a framework for developing, delivering, and sustaining complex products in many fields of including research, sales, marketing and advanced technologies as seen below. In this methodology, the individual responsible for the business value of the project and for deciding what work to do is the product owner. This individual is usually the project's key stakeholder which gives him the responsibility of providing the vision of what the product should ultimately be to the rest of the team..

4 0
3 years ago
The foreign exchange market is a market for converting the currency of one country into that of another country.
3241004551 [841]

Answer:

a. True

Explanation:

The foreign exchange market is a market for converting the currency of one country into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

4 0
2 years ago
If the economy is experiencing an inflationary gap, the Fed should conduct ______ monetary policy to ______ aggregate demand.
Romashka [77]
The answer is Contractionary and Decrease
6 0
2 years ago
Stockholders, employees and environmentalists are examples of stakeholders whose interests
Gelneren [198K]

Stockholders, employees and environmentalists are examples of stakeholders whose interests and needs often conflict.

<h3>Who is a stakeholder?</h3>

A stakeholder can be defined as an independent individual, organization or social group that has an interest in a particular business organization (company), and as such they can either affect or be affected by the decisions taken in the business.

This ultimately implies that, stockholders, employees, investors, and environmentalists are examples of stakeholders whose interests and needs often conflict.

Read more on stakeholders here: brainly.com/question/15532995

#SPJ1

7 0
2 years ago
You purchased six call option contracts on ABC stock with a strike price of $32.50 when the option was quoted at $1.65. The opti
snow_lady [41]

Answer:

$270

Explanation:

Calculation to determine the net profit or loss on this investment

Using this formula

Total profit/Loss =Stock value -Strike price-Option quoted)×100×Call option

Let plug in the formula

Total profit = ($34.60 - $32.50 - $1.65) × 100 × 6

Total profit =$0.45×100×6

Total profit= $270

Therefore the net profit on this investment is $270

4 0
3 years ago
Other questions:
  • An internal report that helps management analyze the difference between actual performance and budgeted performance based on the
    13·1 answer
  • Dée Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $56 per share. She borrows $3,500 from her b
    10·1 answer
  • On Joe Martin’s graduation from college, Joe’s uncle promised him a gift of $12,000 in cash or $900 every quarter for the next 4
    12·1 answer
  • Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama
    7·1 answer
  • need asap plz!!! Questlon 5 of 10 Which statement best describes the idea of the law of supply? A . The supply of a product decr
    12·1 answer
  • Read one article in newspaper, then, explain the specific ideas contained in various
    8·1 answer
  • A manager is asked to initiate activities that will support environmental scanning. Which activity should be used by this manage
    5·1 answer
  • Upton Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products usin
    15·1 answer
  • The economic rule of thumb that only future costs and benefits, not past commitments, should be considered in making a decision
    6·1 answer
  • a. As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!