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Irina18 [472]
3 years ago
6

a semiannual interest of 3.5%. Any money he invests would have to be left in the fund for at least five years if he wanted to wi

thdraw it without penalty. a) What is the nominal interest rate on this investment? b) What is the annual effective interest rate? c) If James deposits $8,000 in the fund now, how much will it be worth in five years?
Business
1 answer:
Lemur [1.5K]3 years ago
8 0

Answer:

Results are below.

Explanation:

Giving the following information:

The semiannual interest of 3.5%.

A) We need to calculate the nominal interest rate:

Nominal interest rate= 0.035/2= 0.0175

B) Real interest rate:

Real interest rate= (1.0175^2) - 1= 0.03531

It compounds interest twice a year. Therefore, is higher

C) Investment= $8,000

We will use the following formula:

FV= PV*(1+i)^n

n= 10

i= 0.175

PV= 8,000

FV= 8,000*(1.0175^10)

FV= $9,515.56

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Flint Suppliers reported cost of goods sold for 2017 of $880,000 and retained earnings of $1,230,000 at December 31, 2017. Flint
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Answer:

corrected amounts  cost of goods sold = $916500

corrected amounts Retained Earnings = $1159000

Explanation:

given data

cost of goods sold = $880,000

retained earnings = $1,230,000

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ending inventories 2017  = $71,000

to find out

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and now we get corrected amounts Retained Earnings that will be as

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corrected amounts Retained Earnings = $1159000

8 0
2 years ago
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Answer:

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