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Alexxandr [17]
3 years ago
7

Shane wants to invest money in a CD account that compounds semiannually at 6% annual rate. Shane would like the account to have

a balance of $100,000 four years from now. How much must Shane deposit to accomplish his goal? A) $78.941 B) $88,849 C) $25,336 D) $22.510
Business
1 answer:
gayaneshka [121]3 years ago
8 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Shane wants to invest money in a CD account that compounds semiannually at a 6% annual rate. Shane would like the account to have a balance of $100,000 four years from now.

To calculate the present value we need to use the following formula:

PV= FV/(1+i)^n

i=0.06/2=0.03

n= 4*2=8

PV= 100,000/ (1.03)^8

PV= 78,940.92

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The correct option is (c) note receivable

A formal credit arrangement between a creditor and debtor is called note receivable.

<h3>What receivable means?</h3>

Receivables, sometimes referred to as accounts receivable, are sums of money owing to a business by its clients for products or services that have already been provided or utilized but have not yet been paid for.

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debit

Notes receivable typically have a debit balance. Debits increase notes receivable and credits decrease them, just like with other assets.

<h3>What type of account is notes receivable?</h3>

The value that a company is owed in promissory notes is recorded as notes receivable, which makes them an asset.

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is:
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