2 years ago

Consider three investment plans at an annual rate of 9.38%.

Business

1 answer:

PolarNik [594]2 years ago

7 0

Answer:

Investor A = $545216 .

Investor B = $352377

Investor C = $897594

Explanation:

Annual rate ( r ) = 9.38%

N = 41 years

Calculate the balance at age of 65

1) For Investor A

balance at the end of 10 years

= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845

Hence at the end of 65 years ( balance )

= $33845 (FIP, 9.38 %, 31) ≈ $545216 .

2) For investor B

at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377

3) For Investor C

at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594

You might be interested in

A company headquartered in Vancouver, British Columbia, is building a pipeline in Russia. The invoice amount is due in 90 days a

Alinara [238K]

Answer:

C. Sell 28,000,000 rubles

Explanation:

By doing so, the company will immediately receive the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.

In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.

5 0

3 years ago

Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. Th

N76 [4]

Answer:

e. None of these.

3 0

2 years ago

It is reported that an annuity-immediate with $100 annual payments for s years has an accumulated value of $933.52 at the time o

Gre4nikov [31]

Answer:

Check the explanation

Explanation:

The Expressed accumulated value (which is the overall sum an investment holds at present, which also includes the capital that was invested and the gain it has received to date. The accumulated value can also be referred to as an cash value.) of this third annuity at the time of its last payment can be seen in the attached image below: