Your answer is:
It is too difficult to compete with major retailers like Target and Best Buy.
When a lot of people buy things from a store, there is a lot of turbulence in many stores, espeically in big retailers. The answer will be It is too difficult to compete with major retailers like Target and Best Buy.
Best of Luck!
Answer:
1. Interest compounded annually = $18,049.74
2. Interest compounded quarterly = $18,493.77
3. Interest compounded Monthly = $18,598.16
4. Interest compounded continuously = $18,651.19
Explanation:
First let me state the formula for compound interest:
The future value of a certain amount which is compounded is the total amount (Principal + interest) on the amount of money, after compound interests have been applied, and this is shown below:
FV = PV
where:
FV = Future value
PV = Present value = $7,000
r = interest rate in decimal = 0.07
n = number of compounding periods per year
t = compounding period in years = 14
For interests compounded continuously, the Future value is given as:
FV = PV ×
where
is a mathematical constant which is = 2.7183
Now to calculate each on the compounding periods one after the other:
1. Interest compounded annually:
here n (number of compounding periods annually) = 1
Therefore,
FV = 7,000 ×
FV = 7,000 × = $18,049.74
2. Interest compounded quarterly:
here, n = 3 ( there are 4 quarters in a year)
FV = 7,000 ×
FV = 7,000 × = $18,493.77
3. Interest compounded Monthly:
here n = 12 ( 12 months in a year)
FV = 7,000 ×
FV = 7,000 × = $18,598.16
4. Interests compounded continuously:
FV = PV ×
FV = 7,000 × 2.66446 = $18,651.19