Answer:
The correct answer is A.
Explanation:
Giving the following information:
Shane wants to invest money in a CD account that compounds semiannually at a 6% annual rate. Shane would like the account to have a balance of $100,000 four years from now.
To calculate the present value we need to use the following formula:
PV= FV/(1+i)^n
i=0.06/2=0.03
n= 4*2=8
PV= 100,000/ (1.03)^8
PV= 78,940.92
Answer:
The correct answer is the third option: High Yield Savings Account.
Explanation:
To begin with, the name of <em>"High Yield Savings Account"</em> refers to a financial tool whose purpose is to act as a deposit account in order to save money with the plus of getting a higher interest rate than in other traditional saving accounts and also offers better returns than traditional checking accounts. Moreover, this typo of account does also tends to come with no monthly fees and low fees for certain situations like having non-sufficient funds. That is why this is best option for Jordan in order to save the money that he inherited.
I'll just attach my answer. The system seems to think that my answer contained swear words.
Answer:
5.56%
Explanation:
Annual payment = Monthly payment * 12
Annual payment = $1,900 * 12
Annual payment = $22,800
So, she can afford to pay $22,800 in a year
The interest rate is Lana getting = Annual payment / principal balance
= $22,800 / $410,000
= 0.0556
= 5.56%
Answer:
$24
Explanation:
Calculation to determine What will the estimated intrinsic value of the Shoe Barn Inc.'s stock
Using this formula
Estimated intrinsic value = Earnings * P/E Ratio for the industry
Where,
EPS = $2
Industry P/E = 12
Let plug in the formula
Estimated intrinsic value= $2 * 12
Estimated intrinsic value= $24
Therefore the estimated intrinsic value of the Shoe Barn Inc.'s stock is $24
