If MM's proposition II without taxes is true, what is the return to investors who invest $20 in a stock, borrow another $20 to b
1 answer:
You might be interested in
The formula for future value of annuity that exists future value of annuity = P × .
Save each year to reach their goal exists $2152.48
Save each year to reach their new goal exists $2869.97
<h3>What is meant by future value of annuity?</h3>The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, or discount rate, is the future value of an annuity. The future value of the annuity increases with the discount rate.
Given: amount saved = 120,000
Rate of Interest earned = 12.0 %
time = 18th birthday
Where, annual savings = P
The formula for future value of annuity that exists future value of annuity = P × ................(1)
where r exists rate and n exists a time period
put her value
$ 120,000 = P ×
= $ 2152.48
Save each year to reach their goal exists $ 2152.48 and for $ 160,000 on 18 th Birthday
we consider here annual savings = P
From (1),
Future value of annuity = P ×
$ 160,000 = P ×
P = $2869.97
Therefore, Save each year to reach their goal exists $2152.48
save each year to reach their new goal is $2869.97
To learn more about future value of annuity refer to:
#SPJ4