All categories

3 years ago

Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Business

1 answer:

gregori [183]3 years ago

8 0

Answer:

future value = 240.076 = 240.08

so correct option is $240.08

Explanation:

given data

present value = $125

rate = 8.5 % = 0.085

time = 8 year

to find out

future value

solution

we get here future value that is express as

future value = present value × $(1+r)^{t}$ ...........................1

here r is rate and t is time period

put here value in equation 1

future value = present value × $(1+r)^{t}$

future value = $125 × $(1+0.085)^{8}$

future value = 240.076 = 240.08

so correct option is $240.08

You might be interested in

9. Efficient markets hypothesis Which of the following are consistent with the efficient markets hypothesis? Check all that appl

atroni [7]

Answer:

The answer is: Stock markets reflect all available information about the value of stocks

Explanation:

Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.

7 0

3 years ago

Im bored who wanna talk im hella cool and lowkey chill ;)

N76 [4]

Answer:

GO BACK TO CLASS

Explanation:

dude

3 0

3 years ago

Read 2 more answers

Japan has the ability to produce either 10,000 televisions or 5,000 cars in a day. The United States has the ability to produce

lisabon 2012 [21]

Answer:

<h2>The United States has the comparative advantage in car production.</h2>

Explanation:

Japan has a lower opportunity cost of producing televisions compared to cars, implying that Japan basically has to give up or sacrifice or trade off relatively less number of cars to produce one more television compared to the production of one more car.
Alternatively, US has a lower opportunity cost of producing cars relative to televisions meaning that US has to give up, sacrifice or trade off less number of televisions to manufacture one more car in comparison to the production of one more television.
Hence, in this case,US has a comparative advantage in the production of cars and Japan has a comparative advantage in production of television and both countries can produce these respective commodities by using relatively less productive resources or factor inputs.

8 0

3 years ago

On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later, on January

abruzzese [7]

Answer:

$7,250

$284,562.5

Dr. Bond Payable $290,000

Dr. Loss on Retirement $18,487.5

Cr. Bond Discount $5,437.5

Cr. Cash $303,050

Explanation:

Bond is issued on the discount when it is issued below the face value.

Discount value = Face value - Issuance value = $290,000 - $282,750 = $7,250

Carrying value of the bond is the net of face value of the bond and un-amortised bond discount.

Carrying value = 290,000 - ($7,250 x (20-5) / 20) = $284,562.5

Bond Discount = $7,250 x 15/20 = $5,437.5

5 0

3 years ago

A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.1 percent. What must

kvv77 [185]

Answer:

The expected return on this stock is 11.38%.

Explanation:

We apply the Capital Asset Pricing Model (CAPM) to solve the problem.

Under the CAPM, we have:

Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate).

in which:

Risk-free rate is given at 3.1%;

Beta is given at 1.15;

Return on Market is given at 10.3%;

So:

Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate) = 3.1% + 1.15 * ( 10.3% - 3.1%) = 11.38%.

Thus, the answer is 11.38%.

8 0

4 years ago