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mart [117]
3 years ago
13

Your goal is to have $7,500 in your bank account by the end of six years. If the interest rate remains constant at 8% and you wa

nt to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.) $1,022.37 $1,226.84 $1,124.61 $817.90
Business
1 answer:
Sergio [31]3 years ago
8 0

Answer:

$1,022.37

Explanation:

We need to sovle for the quota which genereated a futute value of 7,500 dollars after 6 years assuming a constant 8% interest rate.

FV \div \frac{(1+r)^{time} - 1 }{rate} = C\\  

FV  $7,500.00  

time            6 years

rate            0.08

7500 \div \frac{(1+0.08)^{6} -1 }{0.08} = C\\  

<em>C  $ 1,022.365 </em>

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sleet_krkn [62]

Answer:

To not get life insurance because he has no dependents is reasonable.

Explanation:

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3 years ago
Explain whether each of these expenses of a textile mill is a fixed cost or a variable cost, and why. (a) repairs to a leaking r
Gekata [30.6K]

Answer:

Fixed costs are those costs that do not vary with the level of production. While, variable cost are those costs that change with the level of production or per unit consumption.

(a) Repairs to a leaking roof- Fixed cost as it has nothing to do with the level of production.

(b) Cotton- Variable cost as it depends on the number of units produced.

(c) Food for the miller's cafeteria- Variable as it depends on production. The more you produce the more workers you need and thus more is the food requirement.

(d) Night security guard-  Fixed cost as it does not change with the number of units produced by the textile mill.

(e) Electricity- Variable cost as it depends on the units of electricity consumed. The more you produce the more electricity will be consumed.

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3 years ago
Read 2 more answers
A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields
Kobotan [32]

Answer: The correct answer is "an intermarket spread".

Explanation: This is an example of <u>an intermarket spread</u> swap.

  • An intermarket spread swap, is the exchange of 2 bonds within different parts of the same market in order to obtain a higher yield.
7 0
3 years ago
Ratio analysis:___________.
Mnenie [13.5K]

Answer:

D. Serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Explanation:

Ratio analysis serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Ratio analysis can be defined as the analysis of different pieces of financial information in the financial statements of a business.

Ratio analysis is used to get insight about the financial wellbeing of a business. It is used by analysts to determine various aspects of a business, such as its profitability, liquidity, and solvency.

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As Bart Brownlee approached retirement, he decided the time had come to invest some of his nest egg in a conservative fund. He c
Serga [27]

Answer:

$1,275

Explanation:

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= Invested amount × fund charges a load percentage

= $30,000 × 4.25%

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