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marin [14]
3 years ago
14

Use the following information to answer the next three questions.

Business
1 answer:
nalin [4]3 years ago
6 0

Answer:

The  alignment of numbers in the first part of the question is off. However, you solve this question as shown below. The correct answer is C. $1,124.

Explanation:

This is a one-time cashflow type of question where the principal amount is invested once and no other addition is made to the account. You use the future value formula to solve the result of the compounding effect at year 3.

FV formula;

FV = PV(1+r)^n

PV = 800

discount rate; r = 12% or 0.12

total duration of investment; n = 3

therefore; FV = 800(1+0.12)^3

FV = 800 * 1.404928

FV = 1123.94

To the nearest whole dollar, the amount will grow to $1,124

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a. 9.43%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

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To find the IRR using a financial calacutor:

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I hope my answer helps you

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4 years ago
Intranets are an effective tool for gauging employee opinions and reactions to policy changes.
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False

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