1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sunny_sXe [5.5K]
3 years ago
7

10. Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per year. b. 10 years at an interest rate of 5%

per year. c. 5 years at an interest rate of 10% per year. d. Why is the amount of interest earned in part(a) less than half the amount of interest earned in part (b)
Business
1 answer:
timofeeve [1]3 years ago
4 0

Answer and Explanation:

The computation is shown below;

Given that,

Principal = P = $2000

As we know that

Future value (FV) = P × (1 + R)^n

here,

R = Rate of interest,

N = no of years

Now

A) N = 5, R = 5% = 0.05

FV = $2,000 × (1.05)^5

= $2,553

The Interest earned is

= $2,553 - $2,000

= $553

B) N = 10, R = 5% = 0.05

FV = $2,000 × (1.05)^10

= $3,258

The Interest earned is

= $3,258 - $2,000

= $1,258

C) N = 5, R = 10% = 0.10

FV = $2,000 × (1.10)^5

= $3,221

D) Option A

As in the part B the time period is 10 years as compared with the part A i.e. 5 years having the interest rate same

Also the cumulative interest would be greather than double as compared with part A

You might be interested in
Can we chat I am bored I had instagram too​
Otrada [13]

Answer:

well l'm not on instagram

4 0
2 years ago
Read 2 more answers
The fifth step of the financial planning process is to create and implement the financial action plan. What is involved in this
alexgriva [62]

Answer:

Developing an action plan that identifies ways to achieve your financial goals.

7 0
2 years ago
Tamara is a Managerial Accountant at Everything New. Everything New manufactures furniture. Tamara purchased leather to be used
Murrr4er [49]

Answer:

B. Raw Materials

Explanation:

Raw materials are the basic components of manufacturing and production process in a goods manufacturing entity.  Raw Materials  are used in the production of a finished products (such as Crude Oil is a raw material for Petrol, Milk is a raw material for Yogurt, Yarn is a raw material for Garment whereas  Petrol, Yogurt and Garment are the finished products).

Keeping in view the above discussion, the leather purchased by the Tamara, to be used on some of the furniture to be manufactured by the Everything New, shall be classified as Raw Materials.

Answer is B. Raw Materials

4 0
2 years ago
Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen
Fudgin [204]

Answer:

  • The richest quintile has the ability to save a larger percentage of its income.
  • Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

7 0
3 years ago
Ohlson Co. is preparing an Excel spreadsheet for its 20-year, 4.5%, $500,000 bonds payable. The bonds were issued on January 1 t
uranmaximum [27]

Answer:

=E7*C2/2

Explanation:

The interest expense will be the carrying value of the bond times the effective interest rate.

On cell C8 we have the interest expense

On E7 we have the carrying value which is the outstanding balance.

Then, on C2 we got the effective rate

As this is an annual formula, we must divide by two to convert to semiannual rate.

A file is attached for how the excel sheet looks like

6 0
2 years ago
Other questions:
  • Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 6 percent. The bond sells for $98
    8·1 answer
  • Imagine your 16-year-old daughter wants to attend a Friday night high school party, and you do not know who will be attending. U
    13·1 answer
  • The English publisher of a book called Cambridge gave a New York publisher permission to sell that book any place in the world e
    8·1 answer
  • Sales of the cooler freeze packs made by the company Coolpaxx have been declining. Online sales information is shared with the s
    8·1 answer
  • The following data were gathered to use in reconciling the bank account of Photo Op. Company: Balance per bank $ 14,400 Balance
    12·1 answer
  • At year end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities (including preferred sto
    11·1 answer
  • The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay p
    5·1 answer
  • As of December 31, 2019, Sheffield Corp. had $3000 of raw materials inventory. At the beginning of 2019, there was $2500 of mate
    7·1 answer
  • The final step in active listening involves
    15·1 answer
  • A recent Supreme Court ruling made it easier to prosecute insider trading cases by
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!