Credit is the ability to _____ and ____

Calculate the future value in six years of $8,000 received today if your investments pay (Do not round intermediate calculations

slamgirl [31]

Answer:

a) Annual effective rate = 5%

PV of payment received today = $8,000

Asked to find value in 6 years

FV of payment = PV * (1+r)^6

FV = 8000*(1.05)^6

FV = $10,720.77

b) Annual effective rate = 7%

PV of payment received today = $8,000, Asked to find value in 6 years

FV of payment = PV * (1+r)^6

FV = 8000*(1.07)^6

FV = $12,005.84

c) Annual effective rate = 9%

PV of payment received today = $8,000, Asked to find value in 6 years

FV of payment = PV * (1+r)^6

FV = 8000*(1.09)^6

FV = $13,416.80

d) 9% semi-annual compounding -> Semi-annual rate = 9%/2 = 4.5% and this needs to be compounded twice because there are 2 semi-annual periods in a year

effective rate(1+r) = (1+.045)^2

r = 9.2025%

Annual effective rate = 9.2025%

PV of payment received today = $8,000, Asked to find value in 6 years

FV of payment = PV * (1+r)^6

FV = 8000*(1.092025)^6

FV = $13,567.05

e) 9% Quarterly compounding -> Quarterly rate = 9%/4 = 2.25% and this needs to be compounded 4 times because there are 4 quarters in a year

effective rate(1+r) = (1+.0225)^4

r = 9.3083%

Annual effective rate = 9.2025%

PV of payment received today = $8,000, Asked to find value in 6 years

FV of payment = PV * (1+r)6^

FV = 8000*(1.093083)^6

FV = $13,646.13

3 0

3 years ago

What is a corporation? a partnership that raises money through loans from the goverment a company whose owner is personally resp

Vikki [24]

Answer:

False

Explanation:

A corporation is "a group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members."

Reference: Boundless, Boundless.com. “Boundless Business.” Lumen, 2019

3 0

3 years ago

Read 2 more answers

The resource management planning process includes the following steps:

mote1985 [20]

Answer:

The correct answer is C

Explanation:

Resource management plan is a kind of tool which is used by the project managers in order to manage the resources. Basically, a resource management plan is used to control the most vital resource of every project, which is the human resource.

The last and final step in the resource management plan is maintaining or keeping a resource inventory.

6 0

3 years ago

Government is typically a ________.

xxTIMURxx [149]

Answer: D. net demander of funds because it borrows more than it saves

The government incurs more debts than gain profits as shown by most financial reports. The government is viewed similarly to that of business firms being net demanders by loaning huge amounts to financial institutions indirectly. The indirect borrowing done by government is done through debt security selling.

8 0

3 years ago

Nemesis, Inc., has 215,000 shares of stock outstanding. Each share is worth $81, so the company's market value of equity is $17,

Ksivusya [100]

Answer:

$81, $75, and $69

a. Market value of existing shares = 215000 * $81 = $17415000

Value of New shares issued = 48000 * $81 = $3888000

$21,303,000

Price after issue of new shares = 21,303,000 / (215000 + 48000)

= 21,303,000 / 263,000

= $81

Conclusion: No changes ($0 per share

b. Market value of existing shares = 215000 * $81 = $17415000

Value of New shares issued = 48000 * $75 = $3600000

$21015000

Price after issue of new shares = 21015000 / (215000 + 48000)

= 21,015,000 / 263,000

= $79.90

Conclusion: There is a decrease in amount (81 - 79.90) = $1.10 per share

c. Market value of existing shares = 215000 * $81 = $17415000

Value of New shares issued = 48000 * $69 = $3312000

$20,727,000

Price after issue of new shares = 20,727,000 / (215000 + 48000)

= 20,727,000 / 263,000

= $78.81

Conclusion: There is a decrease in amount (81 - 78.81) = $2.19 Per share

4 0

4 years ago

Credit is the ability to _____ and _____ later.

Credit is the ability to _ and _ later.