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swat32
2 years ago
6

3. Suppose Tyrone wants to open a savings account that earns 3.5% simple interest per year. He wants it to be worth $1500 in 4 y

ears. How much does he need to deposit in the account today to make that happen? Round to the nearest whole dollar.
Business
1 answer:
saw5 [17]2 years ago
3 0

Answer:

$1,307

Explanation:

The computation of the future value by using the following formula is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years  

$1,500 = Present value × (1 + 0.035)^4

So, the present value is

= $1,500 ÷ (1.035)^4

= $1,307

Hence, the present value is $1,307 and the same is to be considered

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Suppose American Bank has​ $500 in deposits and​ $200 in reserves and that the required reserve ratio is 10 percent. In this​ si
Alekssandra [29.7K]

Answer:

A. ​$50 in required reserves.

Explanation:

Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.

As per given data

Deposits = $500

Reserves = $200

Required Reserve ratio = 10 percent

Required reserve = Reserve required / Total Deposit

0.1 = Reserve required / $500

Reserve Required = $500 x 0.1

Reserve Required = $50

Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150

6 0
3 years ago
Henry wants to send his son to computer school which will start one year from today. Payments of $2,000 are due at the end of ea
egoroff_w [7]

Answer:

Henry shall invest $3,018 at present to get $2,000 at each year end for 2 years.

Explanation:

Provided interest rate = 12%

Payment to be made is at the end of year 2 and at the end of year 3

Because it is provided that the payment has to be made at the end of next two years,

Therefore,

Present value interest factor (PVIF) @ 12% for second and third year will be considered.

As today we are at beginning of year 1

First payment will be made at end of next year that is year 2

Second payment at end of third year that is year 3

PVIF

Year 2 = \frac{1}{(1+0.12)^2} = 0.797 \times 2,000 = $1,594

Year 3 = \frac{1}{(1+0.12)^3} = 0.712 \times 2,000 = $1,424

Present value of investment = $1,594 + $1,424 = $3,018

Final Answer

Henry shall invest $3,018 at present to get $2,000 at each year end for 2 years.

8 0
3 years ago
I need help. Can someone explain to me how to graph and find this.
Jlenok [28]
Copy and paste it in google see what it gives u
3 0
3 years ago
A company's normal selling price for its product is $23 per unit. However, due to market competition, the selling price has fall
zmey [24]

Answer:

$2.720

Explanation:

Under the inventory at the lower of cost or market method, we value inventory by taking the lowest value, either market, or cost. In this case, the cost, or replacement cost, is lower than the market value, so the value of the inventory will be found by multiplying the units by the replacement cost:

170 units x $16 per unit  = $2.720

4 0
3 years ago
Xin chào tôi đẹp trai còn bạn thì không
valkas [14]

không đẹp trai vì tôi đẹp gái haha

3 0
2 years ago
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