This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose
Question:
This problem demonstrates the dependence of the future value of an annuity on the interest rate. Suppose $1000 is invested at the end of each year for 20 years. Calculate the future value if the investments earn an annually compounded rate of return of
a 5%.
b. 6%.
c. 7%.
d. 8%.
Note that the future value increases proportionately more than the interest rate.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 70% (10 reviews)
a Given Similarly FV n 20 PMT ...View the full answer
Answered By
Nimlord Kingori
2023 is my 7th year in academic writing, I have grown to be that tutor who will help raise your grade and better your GPA. At a fraction of the cost on other sites, I will work on your assignment by taking it as mine. I give it all the attention it deserves and ensures you get the grade that I promise. I am well versed in business-related subjects, information technology, Nursing, history, poetry, and statistics. Some software's that I have access to are SPSS and NVIVO. I kindly encourage you to try me; I may be all that you have been seeking, thank you.
4.90+
360+ Reviews
1070+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
This problem demonstrates the dependence of an annuitys future value on the compounding frequency. Suppose $1000 is invested at the end of each year for 25 years. Calculate the future value if the...
-
This problem demonstrates the dependence of an annuitys future value on the size of the periodic payment. Suppose a fixed amount will be invested at the end of each year and that the invested funds...
-
This problem demonstrates the dependence of an annuitys present value on the size of the periodic payment. Calculate the present value of 25 end-of-year payments of: a. $1000. b. $2000. c. $3000. Use...
-
Recall the heat equation which we solved numerically T= = DTxx There we implemented an explicit numerical scheme (FTCS) which led to a conditionally stable solution - meaning that for certain time...
-
Hydrogen enters the turbine of an Ericsson cycle at 1500 kPa and 900 K, with a mass flow rate of 1 kg/s. The temperature and pressure at the inlet to the compressor are 320 K and 150 kPa...
-
The Bode plot of a dynamic system is shown in Figure 10.78, in which the asymptotes are also given. Following the rules of sketching Bode plots, find the transfer function of the system. FIGURE 10.78...
-
Figure P27.18 shows three particles passing near the north end of a bar magnet. Particle 1 is an electron, and particles 2 and 3 are protons. All three particles move at the same speed. (a) Determine...
-
Tidal Corporation was organized on January 1, 2017. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1...
-
which a disk A of radius r rotates about a fixed vertical axis with angular displacement q1. A bar B of length h is pinned to A such that the axis of rotation is a radial line of A. (Note this is a...
-
A owns 100 shares of Humdrum Corporation which he purchased several years ago for $10,000. Humdrum has $12,000 of accumulated earnings and profits. What are the tax consequences to A on the...
-
Many people make their annual RRSP contribution for a taxation year close to the end of the year. Financial advisors encourage clients to contribute as early in the year as possible. How much more...
-
Alison wants to rent a storage locker to store her possessions while she travels in Europe for the next year. The storage operator has quoted her a price of $118.50 per month, payable at the start of...
-
A truck of mass 10 tonnes (metric) is traveling at a velocity of 65 miles per hour. Determine (a) Kinetic energy (KE). (b) How high a ramp is necessary to bring it to a stop if the mechanical energy...
-
Which of the following is a common example of a short-term financing arrangement? a. Bond anticipation notes. b. Grant anticipation notes. c. Tax anticipation notes. d. Revenue anticipation notes. e....
-
Common expenditures in a Capital Projects Fund include a. bond issue costs. b. payments to contractors. c. bond discounts. d. All of the above are common expenditures in a Capital Projects Fund. e....
-
Which of the following statements regarding the required GAAP reporting for a Capital Projects Fund is false? a. A GAAP-basis balance sheet and a Statement of Revenues, Expenditures, and Changes in...
-
Which of the following statements concerning deriving government-wide financial statements is true? a. Adjustments made to convert governmental funds to governmental activities are posted to the...
-
An Internal Service Fund established by a county is intended to operate on a breakeven basis. How might a government dispose of increases or decreases in net assets remaining at year-end?
-
On December 1, 2013, a state government awards a city government a grant of $1 million to be used specifically to provide hot lunches for all schoolchildren. No money is received until June 1, 2014....
-
What are technical skills At what level are they most important and why?
-
Repeat Exercise 4.146 for the respondents mothers education (MAEDUC). Data from 4.146 Is someones education (EDUC) affected by his or her fathers education (PAEDUC)? Use a statistical analysis to...
-
Is someones education (EDUC) affected by his or her fathers education (PAEDUC)? Use a statistical analysis to answer the following questions: a. How strong is the linear relationship between the two...
-
Calculate the coefficient of correlation of the amount of education of the respondents and their spouses (EDUC and SPEDUC). What does this statistic tell you about the relationship between the two...
-
Johnny's Lawn Service camed $200,000 of service revenues for 2020. $190,000 was collected in cash and $10,000 remains in Accounts Receivable as of 12/31/20. S155,000 of expense was incurred during...
-
Company BW has $500,000 loan outstanding. The annual loan interest rate is 6% with monthly compounding (meaning BW is making monthly payments). Find the annual after-tax cost of debt for the loan.
-
The hierarchical system of classification is intended to be a map of evolution. Explain this statement. What is implied about species that occur on the same branch of a phylogenetic tree?
Study smarter with the SolutionInn App