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weeeeeb [17]
4 years ago
9

You have just deposited $8,500 into an account that promises to pay you an annual interest rate of 6 percent each year for the n

ext 6 years. You will leave the money invested in the account and 10 years from today, you need to have $19,320 in the account. What annual interest rate must you earn over the last 4 years to accomplish this goal? Select one: 12.51% 11.55% 11.37% 14.07% 10.01%
Business
1 answer:
Pachacha [2.7K]4 years ago
8 0

Answer:

12.51%

Explanation:

after the first 6 years, you will have:

FV = PV (1 + r)ⁿ

  • PV = $8,500
  • r = 6%
  • n = 6

FV = $8,500 (1 + 6%)⁶ = $12,057.41

If you need to have $19,320 in 4 years, then you must determine r:

$19,320 = $12,057.41 (1 + r)⁴

$19,320 / $12,057.41 = (1 + r)⁴

1.6023 = (1 + r)⁴

⁴√1.6023 = 1 + r

1.1251 = 1 + r

1.1251 - 1 = r

0.1251 = r

r = 12.51%

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5 0
2 years ago
Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when
luda_lava [24]

Answer:

B. The selling price of the product and the consideration promised in the contract differ significantly.

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6 0
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Among the 1018 ​respondents, 128 said that rising gas prices are "not at all annoying." what percentage of respondents said that
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Therefore, the percentage of respondents who said is not annoying is 12.57%.

7 0
3 years ago
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