1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and
Korolek [52]

Answer:

Activity 2= $11.15

Explanation:

Giving the following information:

Total Activity Activity Cost Pools Total Cost Product A Product B Total

Activity 2 $40,140 2,000 1,600 3,600

<u>To calculate the activity rate for Activity 2, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Activity 2= 40,140 / 3,600

Activity 2= $11.15

4 0
3 years ago
Under which model of oligopoly are firms more likely to engage in a price war, driving down prices to marginal cost and resultin
madam [21]

Answer:

The price leardership model of oligopoly

6 0
3 years ago
The financial perspective of the balanced scorecard is concerned with
Pavel [41]

Answer:

D. The​ company's ability to improve and create value

Explanation:

The financial perspective is concerned the businesses are still very much in increasing the revenue and focus how to curtail the cost so as to be increasing the profit and creating value for the concern. So here balanced score card is used to assess businesses meeting their financial goal to what extent.

3 0
3 years ago
Who is affected by our government’s fiscal policies?
Norma-Jean [14]

The answer is C- The entire economy

3 0
3 years ago
Which of the following describes a saturated market?
Alecsey [184]
The answer is b many people want this product and havent purchased it yet
4 0
3 years ago
Read 2 more answers
Other questions:
  • In what way does the article describe the two-party system as a positive system when compared with a multiparty system?
    6·2 answers
  • The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would
    10·1 answer
  • Fernandez Corporation purchased a truck at the beginning of 2020 for $50,000. The truck is estimated to have a salvage value of
    12·1 answer
  • The type of cover letter written to request assistance and support from the author’s job network:
    6·1 answer
  • Is a production process that generates customized products in high volumes?
    14·1 answer
  • Harry Corporation's common stock currently sells for $179.85 per share. Harry paid a dividend of $10.18 yesterday, and dividends
    5·1 answer
  • Blackmon Brothers law firm used 165 legal pads over the last three weeks (15 days). It takes them three days to get more, and th
    8·1 answer
  • Iverson Company purchased a delivery truck for $45,000 on January 1, 2018. The truck was assigned an estimated useful life of 10
    12·1 answer
  • True/False
    7·1 answer
  • Lack of access to key distribution channels is considered weakness true or false​
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!