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
Slav-nsk [51]
3 years ago
15

Newman Finley wishes to become a millionaire. His money market fund has a balance of $296,375 and has a guaranteed interest rate

of 6%. How many years must Newman leave that balance in the fund in order to get his desired $1,200,000?
Business
1 answer:
Rus_ich [418]3 years ago
3 0

Answer:

Investment period = 24 years

Explanation:

The total amount that an investment made today would become  if invested at a particular rate for certain number of years is known as the future value.

The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.

FV = PV × (1+r)^n

1,200,000 = 296,375 × (1.06)^(n)

(1.06)^(n) = 1200000/96,375

(1.06)^(n) =4.048924504

find the log of both sides

n log 1.06= log 4.048924504

n= log 4.048924504/log 1.06

n = 24

It will take 24 years

You might be interested in
The economy's self-correcting mechanism (market forces) a. tends to push unemployment toward a specific point called the natural
lisabon 2012 [21]

Answer:

b. works better at correcting inflationary gaps than recessionary gaps.

Explanation:

The self correcting mechanism is a automatic process in which the aggregate market eliminates an inflationary gap created by a short-run equilibrium that is greater than full employment through increases in wages and other resource prices.

8 0
3 years ago
Even though they operate from out-of-the-way airports and offer few extra services, discount, no-frill airlines like Ryanair and
Taya2010 [7]

Answer: The correct answer is "D. the benefit of lower prices to be greater than the cost of reduced services and less convenience.".

Explanation: Consumers obviously consider the benefit of lower prices to be greater than the cost of reduced services and less convenience.

Discount and no-frills airlines have less costs to cover so they can offer lower and more affordable prices for consumers. These airlines have been successful because it turns out that consumers value or prefer the lower price rather than the additional services.

3 0
3 years ago
After a customer buys a computer or receives service from Tech Geek, a service representative contacts each customer to conduct
vova2212 [387]

Answer: False.

Explanation:

The survey information gathered from the customers is a form of getting feedback from the consumers of Tech Geek products/services, which is a form of input that enables the company improve on their products/services.

4 0
3 years ago
A bond that pays interest semiannually has a price of $975.11 and a semiannual coupon payment of $28.25. If the par value is $1,
Roman55 [17]

Answer:

5.79%

Explanation:

For the computation of current yield first we need to find the annual coupon is shown below:-

Annual Coupon = Coupon payment × Semi annual

= $28.25 × 2

= $56.5

Current Yield = Annual Coupon ÷ Market Price

= $56.5 ÷ $975.11

= 0.0579

or

= 5.79%

Therefore for computing the current yield we simply applied the above formula so that the correct rate could come

4 0
3 years ago
Ramsay, the ceo of a large corporation, was indicted for tax fraud. the government accused him of hiding a vast amount of the co
Harlamova29_29 [7]
In this type of situation, both Ramsay and the company will be investigated for the tax fraud case. Even if Ramsay was found not guilty, the company will still be investigated since the company is a separate entity and there is an alleged big amount hidden in company's assets. If the company is found guilty, it will still be liable for the case even if Ramsay was found not guilty. Most likely, the investigators will try to tie the case back to him anyway since he is one of the main representatives of the company. 
4 0
3 years ago
Other questions:
  • "icrosoft announced a 2 for 1 stock split. Before the split they had 5.4b shares outstanding and par value was $0.0000125. Befor
    10·2 answers
  • Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi
    7·1 answer
  • The fundamental purpose of the starting phase of a project is​ ________.
    13·1 answer
  • What is the total stockholders' equity based on the following account balances?Common Stock $1,300,000Paid-In Capital in Excess
    14·1 answer
  • Need calculation for What is the probability that the mean GPA for 64 randomly selected BYU- Idaho students will be less than 3.
    14·1 answer
  • Compare and contrast the U.S. Constitution and the Arizona Constitution. Discuss three findings that account for the significant
    10·1 answer
  • Auto insurance is needed primarily because of __________. (points : 2)
    11·1 answer
  • Suppose the market follows a single index model, where the index has standard deviation of 15%. For a stock with firm-specific r
    13·1 answer
  • Legislates and enforces regulations that
    6·1 answer
  • Investment methods, such as net present value and internal rate of return, ________
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!