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USPshnik [31]
3 years ago
15

If you wish to accumulate $150,000 in 10 years, how much must you deposit today in a bank account that pays an annual interest r

ate of 12%
Business
1 answer:
Leni [432]3 years ago
4 0

Answer:

PV= $48,295.99

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Number of periods (n)= 10 years

Interest rate (i)= 12% = 0.12

<u>To calculate the initial investment (PV), we need to use the following formula:</u>

PV= FV / (1+i) n

PV= 150,000 / (1.12^10)

PV= $48,295.99

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crimeas [40]

4320 .  this prob would have been answered faster under the mathmatics topic


8 0
3 years ago
One tip for working with colleagues from different generations is to multiple choice stick to basic technology for teamwork. def
grandymaker [24]
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A. defer to the oldest team member.
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7 0
3 years ago
Read 2 more answers
Wesimann Co. issued 10-year bonds a year ago at a coupon rate of 7 percent. The bonds make semiannual payments and have a par va
drek231 [11]

Answer:

$1,123.69

Explanation:

We can use the yield to maturity formula to determine the current market price of the bonds.

YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

  • YTM = 5.3% / 2 = 2.65%
  • coupon = $1,000 x 7% x 1/2 = $35
  • face value = $1,000
  • n = 9 years x 2 = 18

0.0265 = {35 + [(1,000 - M)/18]} / [(1,000 + M)/2]

0.0265 x [(1,000 + M)/2] = 35 + [(1,000 - M)/18]

0.0265 x (500 + 0.5M) = 35 + 55.56 - 0.05555M

13.25 + 0.01325M = 90.56 - 0.05555M

0.0688M = 77.31

M = 77.31 / 0.0688 = $1,123.69

7 0
3 years ago
True/False
alexgriva [62]

Answer:

True

Explanation:

Revenue accounts are accounts were entries of the sales of products as well as the revenue generated by firm or company are properly recorded.

Expense accounts are accounts where that show us the expenses generated by a firm or company. Such expenses are the things the company spends money on which could be purchase of raw materials, payment of labour, repairs of machineries e.t.c.

An accounting period is a duration of time where accounts in a firm or company are balanced and closed for that period.

Revenue and expense accounts must be closed out because their balances apply to only one accounting

period.

3 0
4 years ago
Which of the following factors does NOT influence financial planning?
EastWind [94]

Answer:

D

Explanation:

Investment is not defined until it is current and shown

8 0
3 years ago
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