Problem 01.034 Simple and Compound Interest Durco Automotive needs a $1 million balance in its contingency...
Problem 01.034 Simple and Compound Interest Durco Automotive needs a $1 million balance in its contingency fund 3 years from now. The chief financial officer (CFO) wants to know how much to deposit now into Durco’s high-yield investment account. Problem 01.034.b Simple and Compound Interest Determine the amount if it grows at a rate of 11% per year using compound interest. The amount if it grows at a rate of 11% per year using compound interest is $
Homework Answers
| A | B | C | D | E | F | G | H | I | J | K | L |
| 2 | |||||||||||
| 3 | Using compound interest rate i, the future value after year n of amount A deposited today can be calculated as follows: | ||||||||||
| 4 | FV | =A*(1+i)n | |||||||||
| 5 | |||||||||||
| 6 | Given the following, | ||||||||||
| 7 | FV | $1,000,000 | |||||||||
| 8 | i | 11% | |||||||||
| 9 | n | 3 | |||||||||
| 10 | |||||||||||
| 11 | A | =FV/ (1+i)n | |||||||||
| 12 | $731,191.38 | =D7/((1+D8)^D9) | |||||||||
| 13 | |||||||||||
| 14 | Hence Amount to be deposited today is | $731,191.38 | |||||||||
| 15 | |||||||||||
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Problem 01.034 Simple and Compound Interest Durco Automotive
needs a $1 million balance in its contingency...
If a company wants to have $100,000 in a contingency fund 10 years from now, the...
If a company wants to have $100,000 in a contingency fund 10 years from now, the amount the company must deposit each year in years 6 through 9, at an interest rate of 10% per year, is closest to (a) $19,588 (b) $20,614 (c) $21,547 (d) $22,389
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Pls, answer correctly. Skip if you don't know correct answer. Problem 10 - Simple and Compound...
Pls, answer correctly. Skip if you don't know correct
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Pls, answer correctly. Skip if you don't know correct
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