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
tia_tia [17]
3 years ago
7

Assume that the future value of an ordinary annuity is $3,246, the annual payment is $1,000, and the interest rate is 8 percent.

How many years will it take the $1,000 annual payments to grow to $3,246?
a. 1 year
b. 3 years
c. 5 years
d. 7 years
Business
1 answer:
olga_2 [115]3 years ago
5 0

Answer: b. 3 years

Explanation:

Based on the future value of $3,246 and the annual payment of $1,000, one can guess that the number of payments (years) till the future value is reached will be 3 years.

Plug 3 years in to find out if you are right;

= Annuity * (( (1 + r)^n - 1) / r)

= 1,000 * (( ( 1 + 8%)³ - 1) / 8%)

= $3,246

<em>Answer is proven to be 3 years. </em>

You might be interested in
If a man originally paid ​$4000 in property​ taxes, what will his new tax payment be if he saves 8​% this​ year?
choli [55]

Answer : The new tax payment when he saves 8 % tax this year is, $3680

Explanation :

As we are given that,

Original property​ tax paid by a man = $4000

Percent rate of saving tax = 8 %

First we have to calculate the amount of tax he saved.

Amount of tax he saved = \$ 4000\times 8\%

Amount of tax he saved = \$ 4000\times \frac{8}{100}

Amount of tax he saved = $320

Now we have to calculate his new tax payment when he saves 8 % tax this year.

New tax payment = Original property​ tax - Amount of tax he saved

New tax payment = $4000 - $320

New tax payment = $3680

Thus, the new tax payment when he saves 8 % tax this year is, $3680

3 0
3 years ago
Which sentence in the given text describes an element of the marketing mix that could help
vredina [299]

Answer:

C

though all had the 4p elements only c had a chance to build the business

8 0
3 years ago
If many banks fail, this is likely to: A) increase the ratio of currency to deposits. B) decrease the ratio of currency to depos
alex41 [277]

Answer:

A - Increase the ratio of currency to deposits

Explanation:

when banks are failing people will start having doubts about the banks resulting in not trusting their operations.This occurence will make people keep their monies

4 0
3 years ago
Foreign exchange risk arises when:
ivolga24 [154]

Answer:

Business transactions are denominated in foreign currencies.

Explanation:

Foreign exchange can be referred to as the exchange of one country's currency for another currency. The exchange of these currencies occurs in an exchange market known as forex market.

Foreign exchange risk is a financial risk in which changes in the exchange rate may result in the loss of investment value or huge financial breakdown.

The most effective approach to preventing foreign exchange risks is for organizations to make and receive all forms of payment in their own currency.

6 0
4 years ago
You are considering acquiring a common share of Sahali Shopping Center Corporation that you would like to hold for 1 year. You e
Lena [83]

Answer:

32.37

Explanation:

7 0
3 years ago
Other questions:
  • What is true about the stock market? Investors always make money from investing in the stock market. All stock markets feature p
    14·2 answers
  • Why do firms enter an industry when they know that in the long run economic profit will be​ zero? Firms would enter an industry
    7·1 answer
  • Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used
    9·1 answer
  • Write the script for a one-minute explanation of basic project management concepts.
    12·1 answer
  • A category of assets that typically has zero in the Free Assets column in a Statement of Affairs is:
    9·1 answer
  • What are the location factors of coca-cola? (Give me 2-4 factors)
    8·1 answer
  • The manager of the customer service department told one of her subordinates that, unless he agrees to see her outside of the off
    12·1 answer
  • Last year a company spent $11 million on Internet advertising. If that amount increases by 17 percent this year, how much will t
    9·1 answer
  • Lemony lemonade has​ 3,200 gallons of lemonade in wip​ inventory, with​ 76% of materials already added. The lemonade is​ 50% thr
    15·1 answer
  • On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!