Answer:
a. $173
Explanation:
The computation of the amount of interest earned in five years is shown below;
But before that following calculations need to be done
As we know that
Simple interest = Present value × rate of interest × time period
= $2,500 × 8% × 5
= $1,000
Now the future value is
Future value = Present value × (1 + rate of interest)^number of years
= $2,500 ×(1 + 8%)^5
= $2,500 × 1.4693280768
= $3,673
Now the compound interest is
Compound interest = Future value - Present value
= $3,673 - $2,500
= $1,173
Now interest on interest is
Interest on interest = Compound interest - Simple interest
= $1,173 - $1,000
= $173
I believe the answer is: Term insurance
Term insurance is significantly cheaper compared to other type of insurance because it only cover risk plan without considering potential return in the future.
The amount of term insurance usually paid at a fixed rate on a limited period of time.
Answer:
The minimum deposit will be of 3,081 and after 40 year it will get 1,000,000 dollars
Explanation:
We have to solve for the C of an annuity growing
g 0.05
r 0.06
C 3,081
n 40
Answer:
Multi-purpose credit is the answer
Explanation:
Answer:
The correct answer is: False
Explanation:
