PLEASE HELP ME I AM STUCK

Determine the amount of money that must be invested now (time 0) at 10% nominal interest, compounded monthly, to provide an

Veseljchak [2.6K]

Answer:

the amount of money that must be invested now is $21068.87

Explanation:

Given that:

Nominal interest = 10%

Annuity = 7000

n = 8 years

The Effective interest rate is calculated by using the formula:

Effective interest rate = $( 1 + \dfrac{r}{100 \times n})^n-1$

Effective interest rate = $( 1 + \dfrac{10}{100 \times 8})^8-1$

Effective interest rate = 0.1045

Effective interest rate = 10.45 %

Thus ; the the amount of money that must be invested now is the present value with the annuity of $7, 000 per year for 12 years, starting eight years from now.

$PV = 7000(\dfrac{(1+ 0.1045)^{12}-1}{0.1045(1 + 0.1045)^{12}})( \dfrac{1}{(1+ 0.1045)^8})$

PV = 7000 × 6.666056912 × 0.4515171371

PV = $21068.87

Thus; the amount of money that must be invested now is $21068.87

4 0

3 years ago

Coffee and tea are substitutes for consumers. An increase in the price of coffee coupled with an increase in the number of tea g

hammer [34]

Answer:

Explanation:

As the coffee prices are relative higher than what it actually ends up paying, person will pay above their face value to obtain. Same will apply the same idea for that concept.

As tea is also icnreases we will pushed there.

In the long term we should review how this is done as usually end up here and allone

Therefore the compete sentences will be:

An increase in the price of coffee coupled with an increase in the number of tea growers the lower adverzare will occur within a year Also, we could check for it at 12.600

6 0

4 years ago

Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets

alekssr [168]

Answer:

$7.15

Explanation:

Calculation for Other The cost of wages and salaries and other overhead that would be charged to each bouquet made is:

Wages and salaries charged to each bouquet produced = (60%*$180,000)+(50%*$70,000)/20,000 bouquet

Wages and salaries charged to each bouquet produced = $108,000+$35,000/20,000 bouquet

Wages and salaries charged to each bouquet produced = $143,000/20,000 bouquet

Wages and salaries charged to each bouquet produced = $7.15

Therefore The cost of wages and salaries and other overhead that would be charged to each bouquet made is:$7.15

7 0

3 years ago

Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces mod

Tasya [4]

Answer:

True

Explanation:

Intel is a major computer hardware supplier in the world, and its friend Microsoft buys hardware parts from them which it uses in manufacturing computers such as processor chips.

In respect to the bargaining power of suppliers in Porter's five forces model of industry competition, Intel acts as a supplier to Microsoft. And because of Intel's bargaining power like its market dominance and limited competitors, it can set prices which the–Microsoft has no choice but to purchase.

4 0

3 years ago

The four people below have the following investments. Invested Amount Interest Rate Compounding Jerry $ 11,400 12% Quarterly Ela

Vinvika [58]

Jerry's future value is $24,978.80

Elaine future value is 19,352.40

George future value is 31,443.62

Kramer future value is 28,022.87

Kramer has the greatest investment accumulation because he earned the highest interest.

<h3>What are the future values?</h3>

The formula for calculating future value:

FV = P (1 + r)^nm

FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years

Jerry : 11,400 x ( 1 + 0.12/4)^(4 x 5) = 24,978.80

Elaine : 14,400 x (1 + 0.06/2)^(2 x 5) = 19,352.40

George: 21,400 x (1.08)^5 = 31,443.62

Kramer : 17,400 x (1.10)^5 = 28,022.87

To learn more about future value, please check: brainly.com/question/18760477

#SPJ1

3 0

2 years ago