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poizon [28]
2 years ago
10

How much money should be deposited today in an account that earns 3 %compounded semiannually so that it will accumulate to $ 13,

000 in three​ years?
Business
1 answer:
Elden [556K]2 years ago
5 0

Answer:

PV= $11,889.05

Explanation:

Giving the following information:

Future Value (FV)= $13,000

Number fo periods (n)= 3*2= 6 semesters

Interest rate (i)= 0.03/2= 0.015

<u>To calculate the initial deposit, we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 13,000 / (1.015^6)

PV= $11,889.05

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Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi
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Answer:

$3,667.44

Explanation:

The amount you would be willing to pay today can be determined by finding the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $25

Cash flow in year 5 = $25 + $5000

I = 7%

Present value = $3,667.44

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Retailers of all sizes can explore cpfr as a strategic option, but in order to be scalable, ________ is needed.
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You are asked to make comparisons of two pairs of countries. The first pair are the Latin American countries of Chile and Argent
aleksklad [387]

Answer:

Part a: According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.

Part b: The per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.

Explanation:

<em>Part a:</em>

According to Solow model higher per capita real GDP will be in Chile because of its highest saving rate.

In Solow model the GDP per capita is defined as

                                           y=k^{\alpha}=f(k)

Also the steady state path is given as

sf(k)=(s+n)k\\\frac{s}{s+n}=\frac{k^*}{f(k^*)}\\\frac{s}{s+n}=\frac{k^*^{\alpha-1}}{k^*}\\\frac{s}{s+n}={k^*^{\alpha-2}}

As all other parameters are same thus the country with higher value of s will have a higher per capita GDP.

According to the Solow model, higher saving rate means larger capital stock and high level of output at the steady state.

Higher saving rate leads to faster growth in Solow model. So there is higher per capita real GDP for the country that has higher saving rate.

<em>Part b:</em>

In Simple Solow Model, the steady state per Capita GDP, y^* is the function of the steady state per capita capital stock given as k^*

Now this indicates that

y^*=f(k^*)

where f is an increasing concave function i.e. f'>0 and f''<0

Thus the sole dependence of per capita GDP is on per capita capital stock.

Thus the per capita capital stock or the labour ratio is the primary factor for these differences in the simple Solow model.

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