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puteri [66]
3 years ago
6

Christy Reed has been depositing $2,000 in her savings account every December since 2001. Her account earns 7 percent compounded

annually. How much will she have in December 2012? (Assume that a deposit is made in December of 2012.What is the Future Value?
Business
1 answer:
Sergio [31]3 years ago
7 0

Answer:

Future Value is $35776.902

Explanation:

Given data

saving = $2000

rate = 7 % = 0.07

time = 12 year

to find out

Future Value?

solution

we will apply here future value formula that is

Future Value = saving × (1 + rate)^time - 1 /  rate

put all value here and we get

Future Value =2000 × (1 + 0.07)^12 - 1 / 0.07

Future Value = 2000 × 17.888451

Future Value is $35776.902

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Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per
hodyreva [135]

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0
3 years ago
the industry life cycle is described by which of the following stage(s)? a. start-up. b. consolidation. c. absolute decline. d.
Mandarinka [93]

Startup, growth, shakeout, maturity, and decline are the typical five stages of an industry life cycle.

How can the industry life cycle be discovered?

The life cycle of an industry consists of four phases: peak, contraction, trough, and expansion. A company's cycle location is used by an analyst to project future financial performance and estimate forward valuations (such as forward price-earnings ratios).

Which phases comprise the industry's life cycle?

The stages of introduction, growth, maturity, and decline comprise the four phases of an industry's life cycle. When new products are created, industries are born, and there is a lot of uncertainty about the size of the market, product specifications, and main competitors.

Learn more about industry life cycle here:

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6 0
2 years ago
The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 26 percent of its bu
Ghella [55]

Answer: See Explanation

Explanation:

The work done for each day is written below:

Thursday night = 24%

Friday night = 26%

Saturday night = 34%

Wednesday night = 100% - (24% + 26% + 34%) = 100% - 84% = 16%

Let's assume that sales in a week is represented by x. Therefore average sales in week if x = 1 will be 1/4 = 0.25.

Seasonal relative will be:

= Sales in a day /Average sales in a week

Wednesday = 16% / 0.25 = 0.16 / 0.25 = 0.64

Thursday = 24% / 0.25 = 0.96

Friday = 26% / 0.25 = 1.04

Saturday = 34% / .25 = 1.36

3 0
3 years ago
The polluter-pays principle places moral responsibility on corporations for what?
Nataly [62]

For their past pollution, is what the polluter-pays principle places moral responsibility on corporations. The polluter needs to pay principle places moral responsibility on corporation because they need to increase the result of their past pollution not to be worse. So the answer in this question is for their past pollution.

6 0
3 years ago
Julia, an economics professor, is giving a presentation on her research. what presentation delivery method should julia use if s
fiasKO [112]
I think the best way would be to use applications that allow one to connect to any place around the worlds through the internet. One example is the use of skype. Julia can give out her skype ID to people around the world and use this to connect to the presentation.
3 0
4 years ago
Read 2 more answers
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