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Brut [27]
2 years ago
5

Suppose your bank account pays interest monthly with an effective annual rate of 6%. What amount of interest will you earn each m

onth? If you have no money in the bank today, how much will you need to save at the end of each month to accumulate $100,000 in 10 years?
Business
2 answers:
Anna [14]2 years ago
5 0

Answer:

The monthly interest rate is 0.5%

The monthly savings must be $610.21

Explanation:

Firstly we are given an effective annual rate of 6% therefore to find the effective monthly rate we will divide this interest rate by 12 months as a year has 12 months, the monthly rate is 6%/12= 0.5%.

To now calculate the the monthly savings we will use the future value annuity as this is the monthly deposits that will accumulate an interest in 10 years to be a future amount of $100000, so to simplify the given information :

$100000 is the future value of the monthly savings Fv

0.5% is the monthly interest rate i

10 years  x 12 months = 120 payments is the number of saving deposits in 10 years.

now we will substitute the above information to the following future value formula:

Fv = C[((1+i)^n -1)/i]

C is the monthly savings deposits that will be accumulated during the 10 year course in which we will calculate.

$100000 = C[(1+0.5%)^120 -1)/0.5%] after substituting we solve for C

$100000/[(1+0.5%)^120 -1)/0.5%] = C

$610.2050194 = C now we round off to two decimal places.

$610.21 = C is the monthly savings that will accumulate to $100000 in 10 years.

Bess [88]2 years ago
4 0

Answer:

0.4868%

$615.47

Explanation:

Given that

a. EAR = 6%

Thus,

Equivalent monthly rate = (1 + r)^n - 1

Where r = EAR

Therefore

= (1 + 0.06)^1/12 - 1

= 1.0048675 - 1

= 0.0048675 × 100

= 0.4868%

b. Given that

Monthly rate = 0.4868%

Future value = 100,000

Time = 10 years

Recall that

FV annuity formula = C × (1/r) × ([1 + r ]^n - 1)

Where

C = payment

Therefore

100000 = C (1/0.004868) × ([1 + 0.004868]^120 - 1)

C = 100,000/(1/0.004868) × ([1 + 0.004868]^120 - 1)

C = $615.47 per month

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Ideally, the Behavior Analyst should leave the business card, the name of the individual to be served, and the name of the service that will be provided. In this case, option B is the correct answer.

We can arrive at this answer because:

  • The Behavior Analyst needs to show that he tried to contact the customer and show that he is interested in contacting him again.
  • For this reason, he shows that the customer can get in touch with him, leaving the business card, with the contact forms.
  • To make this contact more professional and thus increase the credibility of the service, the Behavior Analyst leaves the name of the person to be served and the service that will be provided.

This type of behavior shows commitment to customer service, which gives the Behavior Analyst credibility and increases the chances of a contract.

More information:

brainly.com/question/14343395?referrer=searchResults

7 0
1 year ago
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
Tatiana [17]

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

Growth rate = 4% = 0.04

Inflation = 3% = 0.03

Marginal tax rate = 30% = 0.3

Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

8 0
2 years ago
White Pearl Cosmetics markets skin care products for teenage girls between 16 and 19. In approaching its international markets,
Anna35 [415]
I think (but I’m not sure) it’s global
3 0
2 years ago
The rationality assumption as used in economicsA. is widely accepted by other social science disciplines as well.B. states that
NNADVOKAT [17]

Answer:

(D) presumes that everyone can perform sound logical analysis at all times

Explanation:

Economics assumes that everyone is rational and will always choose an option that yields the highest utility in all cases. This accounts for the term "the rational human being" in Economics.

5 0
2 years ago
As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets o
fgiga [73]

Answer:

See below

Explanation:

a. Earnings per share

= After tax earnings / Number of common shares outstanding

= $3,000,000 / 761,000

= $3.9 per share

b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:

= Common stock market value / Earnings per share

= $40 / $3.9

= 10.26

c. The book value of a share of Bozo Oil's common stock

Book value = (Assets - Liabilities) / Number of shares outstanding

= ($15,000,000 - $9,000,000) / 761,000

= $6,000,000 / 751,000

= $7.88

7 0
3 years ago
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