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pychu [463]
2 years ago
8

If $360 is invested at an interest rate of 4% per year and is compounded quarterly, how much will the investment be worth in 18

years? Use the compound interest formula A = P(1 r over n)nt. $175. 86 $422. 39 $430. 61 $736. 96.
Business
1 answer:
podryga [215]2 years ago
5 0

The worth of investment in 18 years will be $1,096.96 after adding $736.96 of the interest amount compounded quarterly.

Computation:

Given,

P Principal amount =$360

r Interest rate =4%

t Time period =18 years

The formula used to determine the compound interest amount is:

A=P\times(1+r)^{n\times\;t}

Substituting the values in the formula:

\begin{aligned}A&=\$360\times(1+0.04)^{4\times18}\\&=\$360\times2.0471\\&=\$736.96\end{aligned}

Therefore, the correct answer for the worth of investment is $736.96.

To know more about compound interest, refer to the link:

brainly.com/question/25857212

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Major Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
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Answer:

a. $ 82, 063

b. - $ 19,206

c.  11.24%

Explanation:

Net Present Value is calculated by taking the Present Day (Discounted) value of all future Net Cash flows based on the company`s Cost of Capital and subtracting the Initial Cost of the Investment.

<em>Using a Financial Calculation</em>

a.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 8%

NPV = $ 82, 063

b.

Cash flow Amount

Cf0 = ($665,000)

Cf1  = $130,000

Cf2 = $130,000

Cf3 = $130,000

Cf4 = $130,000

Cf5 = $130,000

Cf6 = $130,000

Cf7 = $130,000

Cf8 = $130,000

i = 12%

NPV = - $ 19,206

c.

Internal Rate of Return = P  + ((N-P)×p/(p+n))

                                      = 8% + ((12%-8%)×$ 82, 063/($ 82, 063+ $ 19,206))

                                      = 11.24%

3 0
3 years ago
The quantity demanded x for a product is inversely proportional to the cube of the price p for p &gt; 1. When the price is $10 p
Delvig [45]

Answer:

$6.00

Explanation:

Given data

quantity demanded ( x )  ∝ 1 / p^3       for p > 1

when p = $10/unit , x = 64

initial cost = $140, cost per unit = $4

<u>Determine the price that will yield a maximum profit </u>

x = k/p^3 ----- ( 1 ).  when x = 64 , p = $10 , k = constant

64 = k/10^3

k = 64 * ( 10^3 )

  = 64000

back to equation 1

x = 64000 / p^3

∴ p = 40 / ∛x

next calculate the value of revenue generated

Revenue(Rx) = P(price ) * x ( quantity )

               = 40 / ∛x * x   =  40 x^2/3

next calculate Total cost of product

C(x) = 140 + 4x

Maximum Profit  generated = R(x) - C(x) = 0

                                              = 40x^2/3 - 140 + 4x  = 0

                                              =  40(2/3) x^(2/3 -1) - 0 - 4 = 0

                                            ∴ ∛x = 20/3    ∴     x = (20/3 ) ^3 = 296

profit is maximum at x(quantity demanded ) = 296 units

hence the price that will yield a maximum profit

P = 40 / ∛x

  = ( 40 / (20/3) )  = $6

                                             

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c. ​an adhesion contract.

d. ​fraud.

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Answer:

Part of the labor force and employed

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3 years ago
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