Answer:
the fund balance is $1,727,056.25
Explanation:
The computation of the fund balance is shown below:
Given that
PMT = $125,000
NPER = 10
RATE = 7%
PV = $0
The formula is shown below:
= -FV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the fund balance is $1,727,056.25
Here basically the future value formula should be applied
A selfish leader that lets his/her desires above the good of their people.
Answer:
C nag sa got ko sa yo yang C DAHIL SA VARIABLE
Answer:
Market Price $985.01
Explanation:
We have to convert the US semiannually rate to annually.
![(1 + 0.078/2)^{2} -1 = 0.079521](https://tex.z-dn.net/?f=%281%20%2B%200.078%2F2%29%5E%7B2%7D%20-1%20%3D%200.079521)
Now this is the annual rate spected for a similar US Bonds
So we are going to calculate the present value using this rate.
Present value of an annuity of 78 for 20 years at 7.9521%
![C * \frac{1-(1+r)^{-time} }{rate} = PV\\](https://tex.z-dn.net/?f=C%20%2A%20%5Cfrac%7B1-%281%2Br%29%5E%7B-time%7D%20%7D%7Brate%7D%20%3D%20PV%5C%5C)
![78 * \frac{1-(1+0.079521)^{-20} }{0.079521} = PV\\](https://tex.z-dn.net/?f=78%20%2A%20%5Cfrac%7B1-%281%2B0.079521%29%5E%7B-20%7D%20%7D%7B0.079521%7D%20%3D%20PV%5C%5C)
PV = 768.55
And we need to add the present value ofthe 1,000 euros at this rate
![\frac{Principal}{(1 + rate)^{time} = Present Value}](https://tex.z-dn.net/?f=%5Cfrac%7BPrincipal%7D%7B%281%20%2B%20rate%29%5E%7Btime%7D%20%3D%20Present%20Value%7D)
![\frac{1,000}{(1 + 0.079521)^{20} = Present Value }](https://tex.z-dn.net/?f=%5Cfrac%7B1%2C000%7D%7B%281%20%2B%200.079521%29%5E%7B20%7D%20%3D%20Present%20Value%20%7D)
Present Value = 216.4602211
Adding those two values together
$985.01
The reasoning behind this is that an american investor will prefer at equal price an US bonds because it compounds interest twice a year over the German Bonds.
It is to provide your clients a visual demonstration of their current financial situation, the raw numbers on where they are today, and what it would take for them to reach their goals and dreams.