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arlik [135]
3 years ago
8

A 20-year annuity of forty $7,000 semiannual payments will begin 10 years from now, with the first payment coming 10.5 years fro

m now. a. If the discount rate is 11 percent compounded monthly, what is the value of this annuity 4 years from now?
Business
1 answer:
nika2105 [10]3 years ago
7 0

Answer:

The value after 4 years = $59,079.75

Explanation:

To calculate the value of the annuity in four years from now

we first calculate the Present value of the annuity pretending we are at the beginning of the payment year

Pv =  C[1-1/(1+r)^t]/r

c= $7,000

r = 11% /2 = 0.055

t= 20 *2 = 40

Pv = 112,322.87

Then we make the Pv in 10 years the total amount the investment

A = P(1+r)^t

A = 112,322.87

r = 0.055

t= 10*2 =20

P = 38496.30

After getting the Principal amount of the investment then we can get the value after 4 years making

n = 4*2 =8

A = $59079.75

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Answer:

U.S. citizens would purchase more goods from the E.U. for less money

Explanation:

In this scenario $1=€1, and when inflation occurs the purchasing power of the Euro will reduce.

One will need more euros to buy goods, for example if I buy a shirt for €3 the price may now be €5. So more euros are needed to buy the same goods.

Since the dollar did not experience inflation, its purchasing power will remain the same and stronger than the euro.

Thus the dollar will be able to now but more goods compared bro the euro.

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His month, Susan, the branch manager of Intrepid Car Rentals, has heard several complaints from customers that Intrepid employee
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Answer:

A. Policy

Explanation:

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Policies are made up of rules and guidelines which tells and guide employees on their activities and responsibilities in an organization.

5 0
3 years ago
Jim makes a $1,000 deposit in an account paying 4% interest per year. He would like to withdraw two equal amounts: in one year a
FromTheMoon [43]

Based on the amount that Jim deposited and the interest paid per year on the account, withdrawing in two equal amounts would require an amount of <u>$530 per year. </u>

<h3>How much should Jim withdraw per year?</h3><h3 />

Assuming the amount that can be withdrawn is x, the relevant formula would be:

(1,040 - x)  x 104 = 100x

Solving for x gives:

108,160 - 104x = 100x

108,160 = 100x + 104x

108,160 = 204x

x = 108,160 / 204

=  $530

Find out more on future value at brainly.com/question/16180669.

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Answer:

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Explanation:

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