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Doss [256]
3 years ago
12

Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return

is 8.75%. What will be the present value of your investment? A. $163,125 B. $1,857,673 C. $12,112 D. $150,000
Business
1 answer:
tekilochka [14]3 years ago
4 0

Answer:

PV= $12,111.93 = $12,112

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Interest rate (i)= 8.75% = 0.0875

Number of periods (n)= 30

<u>To calculate the present value (PV), we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 150,000 / (1.0875^30)

PV= $12,111.93

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nata0808 [166]

Answer:

-$130,000

Explanation:

The computation of the net loss deducted from his return is shown below:

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Since the value comes in negative which reflects the net loss for the year

We simply deduct the revenues from the expenses so that the net income or net loss could come

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3 years ago
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Answer:

                                  Journal Entry

Date   Account Titles and Explanation         Debit          Credit

Jan 1   Cash                                                    $511,875

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