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Artyom0805 [142]
3 years ago
11

Brenda plans to reduce her spending by $80 a month. Calculate the future value of this increase in saving over the next 10 years

. (Assume an annual deposit to her savings account, and an annual interest rate of 5 percent.)
Business
1 answer:
DerKrebs [107]3 years ago
3 0

Answer:

Explanation:

Formula to be used is Future value of annuity, FVA = Annuity*{[(1+i)^n -1}/i;

i - interest rate; in this case i=5%

n - number of years; in this case n=10

Annuity = 12*80 =960, the yearly amount reduced from spending

So FVA = 960*{[(1+0.05)^10 - 1]}/0.05 = 960*0.62889/0.05 = 960*12.5778 =

= 12,074.68

So the future value of these savings is 12,074.68

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Answer:

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Explanation:

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3 years ago
Describe at least one global trend that you think offers a business opportunity in the global marketplace?
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If you are a passive investor who has a well-balanced international portfolio, how your expectation should be regarding the futu
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Answer:

Following are the responses to the given question:

Explanation:

This problem could be viewed as the upward sloping business cycle. The dividend curve is a graph that plots borrowing costs against time on the x-axis. As just a result, the upward slanting bond yield implies higher future borrowing costs for returns. Both as result, unless you're a minority shareholder, you'd become hopeful about long-term assets that will pay off in the potential.

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3 years ago
The Petit Chef Co. has 10.4 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments
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Answer:

8.10%

Explanation:

For computing the YTM we have to applied the RATE formula that is shown on the attachment

Data provided in the question

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The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative        

So, after solving this, the YTM is 8.10%

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