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
77julia77 [94]
3 years ago
15

2. Sally Medavoy will invest $8,000 a year for 3 years in a fund that will earn 10% annual interest. If the first payment into t

he fund occurs today, what amount will be in the fund in 3 years
Business
1 answer:
ipn [44]3 years ago
5 0

Answer: $10,746

Explanation:

Using Compound interest formula

A= p(1+r/n) *nt

A= final amount =?

P= initial principal =$8, 000

r = interest rate = 0.1

n= nob of times interest applied(3)

t=nob of times period elapsed (3)

A = 8,000 (1+0.1/3) *9

A = 8000 (3+0.1/3) *9

A= 8000 (3.1/3) *9

A = 8000 (1.0333) *9

A = 8000 × 1.34327

A= $10,746

You might be interested in
You own 25 percent of Unique Vacations, Inc. You have decided to retire and want to sell your shares in this closely held, all-e
Akimi4 [234]

Answer:

$6 million

Explanation:

If 25% of the firm is worth $1.5 million, then 100% of the firm will be worth $6 million (= $1.5 million x 4).

This is an all equity firm, which means it has no liabilities, and it is also a closely held corporation which makes it harder for a stockholder to sell his/her shares. Basically the fair value of the 1,000 shares is the money you can get from your fellow shareholders.

3 0
3 years ago
If the company were to issue an annual zero-coupon bond with a maturity of 2 years and par value of $1,000, what would be the ar
Firdavs [7]

Answer:

Note: <em>The complete question is attached as picture below</em>

1a. The one year spot rate can be calculated using the one year zero bond.

PV * (1 + S1) = FV

1 + S1 = 1000 / 900

S1 = 1.1111 - 1

S1 = 0.1111  

S1 = 11.11%

1b. PV of the 2 year bond = $950

Annual coupon = 1000 * 5% = $50

950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2

950 = 50 / 1.1111 + 1,050 / (1 + S2)^2

1,050/ (1 + S2)^2 = 950 - 45 = 905

(1 + S2)^2 = 1050 / 905

1 + S2 = 1.160221/2

S2 = 7.714%

1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2

Price of the 2 year zero bond = 1,000 / 1.1602

Price of the 2 year zero bond = 861.9203586

Price of the 2 year zero bond = $861.92

3 0
3 years ago
An economy has two firms, Russell Farms and the Cider Mill. Russell Farms owns orchards. It sells some of its apples to the publ
noname [10]

Answer:

a. GDP will increase

b. No effect on GDP

c. GDP will increase

d. GDP will increase

e. GDP will rise

Explanation:

Gross domestic product is the total monetary value of all the finished goods produced in the country during a specific period. When a new house is constructed it will create value for the economy and GDP will rise but when an old house is resold again there is no addition in the monetary value so there will be no effect on GDP.

6 0
3 years ago
[Maggie] called her insurance agent after estimating the damages. She had already spent $2,000 on pumping out the water and repa
Nina [5.8K]

Answer:

A,D,E

Explanation:

Took on Edgen2021

7 0
2 years ago
This term considers whether the organization had an operating surplus, broke even,
trasher [3.6K]

Answer:

break even is when an organisation doesn't make profit nor loss.

4 0
3 years ago
Other questions:
  • Which of the following is an advantage of consumer credit?
    10·1 answer
  • All the following are examples of start-up costs EXCEPT
    8·2 answers
  • ​Brown's, a local​ bakery, is worried about increased costs particularly energy. Last​ year's records can provide a fairly good
    6·1 answer
  • Valuing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments had a zero balance. On Decemb
    11·1 answer
  • The following are the transactions for Evans Company: a. Sold merchandise for $645. The cost of goods sold was $375. b. Sold mer
    10·1 answer
  • Multiple Choice Question The following selected information pertains to Wilson Company. Current liabilities: $100; long-term lia
    8·1 answer
  • Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $420,000; Allowance for Doub
    12·1 answer
  • Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate
    6·1 answer
  • How many people make 1 million per year in the world
    10·1 answer
  • The U.S. government agency that advises and assists small businesses by providing management training and financial advice and l
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!