A year has two semesters, then
n = 2<span>v(t)=p<span><span>(<span>1+<span>r/2</span></span>)</span><span>2t
</span></span></span><span>
3875.79 = 1900∗<span><span>(<span>1+(<span>0.04/2)</span></span>)^</span><span>2t
</span></span></span><span>
2.0398895 = <span><span>(<span>1+<span>0.042</span></span>)^</span><span>2t
</span></span></span>Apply natural logarithm on both sides
<span>ln(2.0398895) = ln<span>[<span><span>(<span>1+<span>0.042</span></span>)^</span><span>2t</span></span>]
Then simplify,
</span></span><span>0.712896 = 2t∗ln(1.02)
</span><span>t = <span>0.712896 / (<span>2∗ln(1.02))
</span></span></span><span><span>
t=18 years
I hope my answer helped you. Have a nice day!</span></span>
A: become more aggressive
Depends on what you are trying to fix
The settlement option that provides for ongoing payments for
a period of time is called annuity. The annuity is a type of insurance contract
in which they provide an individual an annual income for a long period of time
such as an example of this is a pension.
Answer:
d. 13.31%
Explanation:
IRR is the rate at which NPV = 0
IRR 13.31%
Year 0 1 2 3
Cash flow stream -1100.000 450.000 470.000 490.000
Discounting factor 1.000 1.133 1.284 1.455
Discounted cash flows project -1100.000 397.136 366.060 336.804
NPV = Sum of discounted cash flows
NPV Project = 0.000
Where
Discounting factor = (1 + discount rate)^(Corresponding period in years)
Discounted Cashflow = Cash flow stream/discounting factor
IRR = 13.31%
Therefore, The project's IRR is 13.31%
