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elena-14-01-66 [18.8K]
4 years ago
6

_________ payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss be

low.
Finding the future value (FV), or _______, is the process of going from today's values to future amounts. The FV equation is

FV=PV(1 + I)^N
Business
1 answer:
geniusboy [140]4 years ago
8 0

Answer:

a. Single

b. Compounding

Explanation:

Lump sums refers to a single payment that is made to a person or an organisation at a specified time. This is different from installment payment that is made as a number of smaller payments over a specified period of time.

Compounding refers to a method of reinvesting earnings or profits from assets or investment with aim of generating extra earnings over time.

Compounding is the foundation of Future Value  (FV) as it considers the present value (PV) of an asset, the total number of years, how frequent the compounding takes place in a year, and the annual interest rate as given in the formula in the question which represented as follows:

FV = PV(1 + I)^N

Where;

FV = Future Value

PV = Present Value

I = annual interest rate

N = number of years

Therefore, single payments are known as lump sums. We can solve for the future value or the present value of a lump sum as we discuss below.

Finding the future value (FV), or compounding, is the process of going from today's values to future amounts.

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Use the drop-down menus to complete the steps for creating a subform.
Maksim231197 [3]

Answer:

Design, Design, Click and Drag, Subform Wizard

Explanation:

Enginuity 2022

7 0
2 years ago
Lindsey holt owns stock in the galloway gems company. she knows in advance that the dividend on this stock is a $1.50 per share.
solniwko [45]

According to the given statement Lindsey holt purchased preferred stock.

The correct option is B.

<h3>What is the preferred stock?</h3>

Preferred stock, which is a component of share capital and is commonly referred to as a combination indicator, is an asset that has any combination of features that common shares does not, such as those of an equity and a promissory note.

<h3>How do preferred stocks work?</h3>

securities with a repaired par value that pays dividends at a fixed rate, generally based on a proportion of the par value. The market price of preferred shares, like bonds, is dependent on changes in interest rates. When interest rates rise, the value of the preferred stock falls.

To know more about preferred stock visit:

brainly.com/question/15078323

#SPJ4

I understand that the question you are looking for is:

Lindsey Holt owns stock in the Galloway Gems Company. She knows in advance that the dividend on this stock is a $1.50 per share and that it is a promised or contractual and constant dividend . Given this, you know for sure that she purchased which type of stock?

A. Green chip

B. Preferred

C. Penny

D. Uncommon

E. Growth

4 0
1 year ago
Which of the following is true about mortgage-backed securities? I) They aggregate individual home mortgages into homogeneous po
quester [9]

Answer:

I ,II and IV

Explanation:

Mortgage backed securities are either a claim for equity in a pool of mortgages, or a duty secured by a pool. Such claims reflect home loan securities. Loans borrow from mortgage lenders and then sell bundles of those loans on the resale market.

Specifically, once those loans are paid off, they sell their claim to the mortgage cash inflows. The issuer of the mortgage needs to maintain the loan, receiving principal and interest payments, and transfers those payments on to the mortgage borrower.

Therefore according to the given situation the correct answer is I, II, IV

6 0
3 years ago
The public debt surpassed GDP during the 1940s 1950s 1960s 1970s 1980s 1990s early 2000s then fell steadily, reaching its lowest
ElenaW [278]

Answer:

The public debt as a percentage of GDP in the United States, reached its lowest point in recent decades, in 2001, when it represented 54.9% of GDP.

After that year, this indicator began to increase, at first slowly, and from 2007 on very rapidly, propelled in part by the financial crisis. In 2010, the public debt as percentage of GDP was 89.3%.

6 0
3 years ago
An equivalent description of the holding of a receive-floating pay-fixed swap is as follows: A. An exchange of a long position i
serious [3.7K]

Answer:

The correct answer is

A)  An exchange of a long position in a fixed-rate bond for a short position in a floating-rate note.

Explanation:

Swapping a fixed interest for a floating one can occur if the fixed interest tenure in comparison to a floating exchange rate becomes less expensive for the entity who took the loan.

Also executing a swap in interest rates (that is giving up the fixed tenure for the floating tenure) helps to ensure that liabilities are kept at minimum whilst assets are maximised.

It is important to note that the capital remains unmodified.

Cheers

4 0
3 years ago
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