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hichkok12 [17]
4 years ago
6

Given below are the present value factors for $1.00 discounted at 6% for one to five periods. Interest is compounded annually at

6%. Periods Present Value of $1 Discounted at 6% per Period 1 0.943 2 0.890 3 0.840 4 0.792 5 0.747 What amount should be deposited in a bank today to grow to $9400 three years from today?
Business
1 answer:
sp2606 [1]4 years ago
6 0

Answer:

$7,896

Explanation:

In order to solve this problem we have to use the present value of $1 discounted at 6% for 3 years = 0.84

We can determine the amount that we should deposit today to have $9,400 in three years by multiplying $9,400 times 0.84 = $7,896

If you want to check your answer you can use the future value formula:

future value = $7,896 x 1.06³ = $7,896 x 1.191 = $9,404

The result is slightly different due to rounding numbers, 0.84 should have been 0.839619283. If we use all the decimals then our answer should be $7,892.421261

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Both you and your older brother would like to have $28,500 in 14 years. Because of your success in this class, you feel that you
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How much less than your brother will you have to deposit today is $1,820.78.

First step

Future value = Present value × (1 + interest rate)^number of years

$28,500 = Present value × (1 + 0.105)^14

Present value= $28,500 ÷ 1.105^14

Present value= $28,500 ÷ 4.04642869977

Present value=$7,043.25

Second step

Future value = Present value × (1 + interest rate)^number of years

$28,500 = Present value × (1 + 0.087)^14

Present value= $28,500 ÷ 1.087^14

Present value= $28,500 ÷3.21524163645

Present value=$8,864.03

Third step

Deposit today=-$8,864.03-$7,043.25

Deposit today= $1,820.78

Inconclusion how much less than your brother will you have to deposit today is $1,820.78.

Learn more about present value here:brainly.com/question/15904086

8 0
3 years ago
Sandra Stone, Vice President of International Operations for Global Apparel Corporation, was working with her subordinate, Pete
SVEN [57.7K]

Answer: develop a reentry plan for Pete prior to the completion of the overseas assignment.

Explanation:

The options to the question are:

A. develop a reentry plan for Pete prior to the completion of the overseas assignment.

B. limit communication to every-other-month status phone calls so as to not micromanage Pete.

C. save costs by avoiding a "look-see" trip for Pete and his family, given Pete's enthusiasm.

D. develop performance measures after Pete had completed his first year.

E. develop the assignment "on the fly" given the uncertainties involved.

From the question, we are informed that Sandra Stone, Vice President of International Operations for Global Apparel Corporation, was working with her subordinate, Pete Thompson, to plan for his upcoming 18-month overseas assignment to the firm's new office in Rome.

We are further told that based upon her experience with previous failed overseas assignments, she was taking steps to avoid another failure. Therefore, one of the key features of Sandra's plan for Pete was to develop a reentry plan for Pete prior to the completion of the overseas assignment. This will help to prevent another failed overseas assignment.

7 0
3 years ago
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Answer:

the action or a process of keeping financial accounting

5 0
3 years ago
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The unreported or illegal production of goods and services in the economy that is not counted in gdp is termed:
UkoKoshka [18]
It is the underground economy. The underground economy alludes to illicit financial action. Exchanges in the underground economy are illicit either in light of the fact that the great or administration being exchanged is itself unlawful or in light of the fact that a generally licit exchange does not agree to government revealing necessities. The main class incorporates medications and prostitution in many wards.
5 0
3 years ago
The City of Ruth has been awarded a $1,000,000 federal reimbursement grant to improvebike trails. The city has incurred $418,000
galina1969 [7]

Answer:

The answer is: $238,000

Explanation:

The City of Ruth should recognize as revenue the difference between their incurred qualifying expenditures in improving bike trails and the federal government reimbursement.

Revenue = $418,000 - $180,000 = $238,000 due from the federal government.

6 0
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