Consider a scenario in which nondurable goods spending is $400 million, durable goods spending is $300 million, new residential
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Answer:
Future value will be larger with smaller compounding period; $373.4 more would be earned with shorter compounding period.
Explanation:
Given:
Amount to be invested = 29,000÷2 = $14,500
Duration if amount invested = 25 years
Rate = 4% or 0.04 compounded annually
Value of investment at the end of 25 years =
= $38,654.63
Future value if compounded annually is $38,654.63
Future value if semi-compounded annually:
Duration = 25×2 = 50 periods
Rate = 0.04÷2 = 0.02
Value of investment at the end of =
= $39,028.03
Future value if semi-compounded annually is $39,028.03
As such, future value is larger if compounding period was 6 months.
They would have earned $373.40 more that is (39,028.03 - 38,654.63), with shorter period.
In many companies, the chief executive officer (CEO), who holds the top management position in the company, also serves as chairman of the board. This is often the case with companies that have grown rapidly and still retain the initial founder in those roles.