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
VashaNatasha [74]
3 years ago
12

For a given single sum invested at 8% for four years, how will the future value be affected if the compounding period is changed

from quarterly to annually?
Business
1 answer:
Lorico [155]3 years ago
5 0

Answer:

Future Value will increase

Explanation:

Future Value = Present Value (PV)*(1 + i)^n

<em>Let Amount  be $10,000</em>

<em>Interest = 12% compounded annually</em>

<em>Period = 4</em>

Future Value = $10,000 * (1 + 12%)^4

Future Value = $15,735.19

<em>Let Amount  be $10,000</em>

<em>Interest = 12% compounded quarterly</em>

<em>Period = 4 (4*4)</em>

Future Value = $10,000*(1 + 3%)^16

Future Value = $16,047.06

Conclusion: The future value will increase.

You might be interested in
"Evan lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the en
julsineya [31]

Answer:

co-operative ownership

Explanation:

Cooperative ownership is an apartment ownership  is the process where by a buyer receives shares of stock in the building corporation and a lease of the apartment being sold as the case of Mr Evan.

5 0
3 years ago
Fill in the blanks: Stock prices fall if investors either expect _________ growth rates or require _________ returns.A. higher,
devlian [24]

Answer:

C. lower, higher

The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also  the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price

Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.

Explanation:

7 0
3 years ago
Read 2 more answers
Identify the marketing research technique implied in the scenario. Tiara is planning to open a small café in her neighborhood. H
AnnyKZ [126]

Answer:

demographic and psychographic segmentation

Explanation:

Tiara's target market is based on age (demographic) and interests (psychographic)

5 0
3 years ago
In the market for beef, the price of a pound of beef falls Explain the effect of this event on the quantity of beef supplied and
Lera25 [3.4K]

Answer:

E. The quantity of beef supplied decreases and the supply of beef is unchanged.

Explanation:

In the market for beef, the price of a pound of beef falls. The effect is "the quantity of beef supplied decreases and the supply of beef is <u>unchanged</u>. The reason is that any price change of the product will not shift the demand or supply but changes the quantity supplied.

5 0
3 years ago
Use your knowledge about the advantages of international trade to complete each sentence. International tradeeconomic growth . I
Hoochie [10]

International trade has been significant for the globalization of free trade relations.

Explanation:

International trade has been responsible for the global economic growth in the 20th and 21st century .

International trade is responsible for the specialization of goods for one country which is at the most advantage for making that particular product while being able to import the others they may need

International trade makes it so that the types of goods and services available around the world can reach any other part of the world.

3 0
3 years ago
Read 2 more answers
Other questions:
  • What recently happened in the automobile industry that exemplifies the idea that "we need to value more the creation of ideas in
    5·1 answer
  • Merticao, a French textile company, supplied most of its products to its primary market in Hestonia, a North American nation. Ho
    7·1 answer
  • _________ memos state policies or procedures the writer wishes the reader to follow.
    9·1 answer
  • The returns on the common stock of Cool Toys are quite cyclical. In a boom economy, the stock is expected to return 23 percent i
    15·1 answer
  • A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts.
    8·1 answer
  • Suppose you deposit $2,454.00 into an account today. In 6.00 years the account is worth $3,868.00. The account earned ____% per
    14·1 answer
  • Which of the following is an example of a mixed cost?
    7·1 answer
  • Each year, Sunshine Motos surveys 7,500 former and prospective customers regarding satisfaction and brand awareness. For the cur
    15·1 answer
  • Menlove Corporation has provided the following cost data for last year when 100,000 units were produced and sold:
    12·1 answer
  • Which law signed by president george w. bush, allowed for more economic freedom amongst different kinds of businesses on the 401
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!