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nikitadnepr [17]
3 years ago
8

You have your choice of two investment accounts. Investment A is a five-year annuity that features end-of-month $2,500 payments

and has an interest rate of 11.5 percent compounded monthly. Investment B is a 10.5 percent continuously compounded lump sum investment, also good for five years. How much would you need to invest in B today for it to be worth as much as investment A five years from now
Business
1 answer:
oee [108]3 years ago
5 0

Answer:

$119,176.06

Explanation:

Calculation for How much would you need to invest in B today

First step is to calculate the Future value of annuity (FVA)

FVA =$2,500 * ({[1 + (.115 / 12)](5 × 12) - 1} / (.115 / 12))

FVA = $201,462.23

Since we have known the FVA Second Step will be to calculate the Present value (PV)

PV = $201,462.23 × e-1 × .105 × 5

PV= $119,176.06

Therefore the amount that you would need to invest in B today will be $119,176.06

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A. Quantitative perspective

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He is relying more in the figures to assist his clients.

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A company changes from the straight-line method to an accelerated method of calculating depreciation, which will be similar to t
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4 0
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Use the following information to work Problems 8 and 9.
IRISSAK [1]

Answer:

Change in CPI = 0.092%

Explanation:

As we know that ,

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As given,

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If energy is not changed means energy is constant , then

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