Options :
A)net present value of the $25,000.
B)future value of the $25,000.
C)internal rate of the return on the $25,000.
D)present value of $25,000.
Answer: B)future value of the $25,000.
Explanation: The Smith's calculation and subsequent result which yielded $31,000 refers to the future value of $25,000. The initial $25000 is the present value of the amount held. If the initial amount is saved or deposited over a certain number of years in an account which yields a certain rate of interest per annum and is compounded either on a monthly, yearly, quarterly or semiannual basis as the case may be, in this scenario above, the interest is called mounded annually. This initial amount will grow and yield an amount which is greater than the present deposit. This is called the future value of the initial deposit.
Answer:
Intangible assets might include: A trademark, a patent, copyright, or even a brand.
Answer:
Christopher
He will need to contribute $661.51 every quarter for seven years.
Explanation:
a) Data and Calculations:
To save up to $20,000 for a house down payment seven years from now, Christopher needs to save every quarter:
Results
PMT = $661.51
N (# of periods) = 28
I/Y (Interest per year) = 2.25
PV (Present Value) = 0
FV (Future Value) = $20,000
P/Y (# of periods per year) = 4
C/Y (# of times interest compound per year) = 4
PMT made at the of each quarter
Sum of all periodic savings = $18,522.41
Total Interest = $1,477.59
Answer: c.disruptive
Explanation: A disruptive Innovation is one that leverages new technologies to attack existing markets from the bottom up (existing market/new technology).
