Q12) What is the most you would be willing to pay for a investment that will pay you $771.00 in one year, $164.00 in two years, and $667.00 in three years, if your required rate of return for this type of investment is 9.29% ? (1.5 points)
When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places.
Answers
The most you would be willing to pay for the investment is approximately $616.52, given a required rate of return of 9.29% and the cash flows provided over three years.
To calculate the present value of the investment, we can use the formula for the present value of a cash flow:
PV = CF1 /\((1 + r)^1\) + CF2 /\((1 + r)^2\) + CF3 /\((1 + r)^3\)
Where PV is the present value, CF1, CF2, and CF3 are the cash flows at each period, and r is the required rate of return.
Plugging in the values:
CF1 = $771.00
CF2 = $164.00
CF3 = $667.00
r = 9.29% = 0.0929
PV = 771 /\((1 + 0.0929)^1\) + 164 /\((1 + 0.0929)^2\) + 667 / \((1 + 0.0929)^3\)
Calculating the expression:
PV ≈ 771 / 1.0929 + 164 /\(1.0929^2\) + 667 /\(1.0929^3\) ≈ $616.52
Therefore, the most you would be willing to pay for this investment is approximately $616.52.
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Related Questions
Essay: Are Songs Poems?
Write an introduction.
What are your agurments? Which side are you on? Do you agree or
disagree? Explain
Answers
Songs can be considered poems. The use of figurative language, rhyme, and meter, and the intention to express thoughts and emotions are all characteristics shared by both forms of literature. While songs may have additional elements such as music, these elements do not diminish the poetic qualities of the text.
Songs and poems share similar traits. Both forms of literature have meter, rhyme, and rhythm. Therefore, it is essential to determine whether songs can be considered poems. In this essay, I will argue that songs can be considered poems.
Arguments The similarity between songs and poems can be seen in various ways. For instance, both forms of literature use figurative language, such as metaphors, similes, and personification. Moreover, both forms are written to express emotions, thoughts, and ideas, to tell a story, and to make social and political commentary.
Additionally, both forms of literature use rhyme and meter to emphasize specific words and to establish a sense of harmony. Songs, however, are unique in the way they use music to enhance their poetic qualities. The use of music adds another layer of complexity to the text and allows for a deeper emotional connection between the listener and the artist.
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JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $219,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?
Answers
Answer:Net working capital = $152,500
Explanation:
Net working capital = CA– CL
Where CA= Current Assets = Cash + Inventory + Accounts Receivable
and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes
CA=$54, 000 + $184,000 + $ 219,000 =$457,000
Current liabilities = Account payable + Notes payable + accrued wages and taxes
CL = $134,000 + $129,000 + $41,500 = $304,500
Net working capital = Current assets – Current liabilities
Net working capital = $457,000 – $304,500= $152,500
Net working capital = $152,500
Fill in the customer satisfaction survey You go to your in-house database, which houses eCompeteUSA's domestic and international sales as well as revenue composition over the past 10 years. You examine this data and apply some statistical analysis in order to help decide where to go next. What should you present at the next meeting to put your investigation on the right path?a. Present the trends in the growth of the U.S. eSports market, because the majority of eCompeteUSA's sales are domestic.b. Present data on eCompeteUSA's current revenue streams, broken down by source with sales trend extrapolations.c. After further consideration, you decide to step back and work on defining the research problem.
Answers
Answer: After further consideration, you decide to step back and work on defining the research problem.
Explanation:
Based on the options given, the answer will be "After further consideration, you decide to step back and work on defining the research problem".
It should be noted that the research problem isn't stated and one doesn't really know what the person wants to do. Do the right thing is to work on the research problem first before doing any other thing.
All of the following are ways to avoid injuries when working on computers except ________. So you are looking up at it ensuring proper lighting taking breaks purchasing an adjustable chair
Answers
Option a: All of the following are ways to avoid injuries when working on computers EXCEPT placing a monitor 12" from the eye.
When we talk about computer-related injuries, we mean any type of aches, pains, aches, pains, or syndromes resulting from computer use. In addition to repeated injuries, this includes conditions caused by poor workplace design, improper posture, and uncomfortable furniture.
To make matters worse, computer-related injury statistics show that the problem is becoming more common. Musculoskeletal disorders alone affect 1.8 million workers and incapacitate 600,000.
Computer-related injuries at work come in many forms. They can take the form of muscle spasms, strains, sprains, headaches, and joint pain.
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Complete question:
All of the following are ways to avoid injuries while working on computers except ______.
(a) placing a monitor atleast 12 inches from the eyes
(b) purchasing an adjustable chair
(c) ensuring proper lightening
(d) taking breaks
What is the alternate name for income tax return form1040?
The income tax return form 1040 is also known as the_____
Answers
Answer:
U.S. Individual Income Tax Return
Answer: "long form" is the answer
Juan is a young sales professional. He should feel that he is at a disadvantage because his
compensation is tied to his performance. T/F
Answers
Juan should not feel that he is at a disadvantage because his compensation is tied to his performance. In fact, having compensation tied to performance can be seen as an advantage for a sales professional. This statement is false.
Here's why:
Incentive for high performance: Tying compensation to performance creates a strong incentive for sales professionals to excel and achieve their targets. Knowing that their efforts directly impact their earnings motivates them to work harder and strive for success.
Reward for exceptional performance: With performance-based compensation, sales professionals have the opportunity to earn higher rewards when they exceed their targets or perform exceptionally well. This can provide a sense of accomplishment and financial satisfaction.
Control over earnings: Performance-based compensation gives sales professionals a certain level of control over their earnings. By putting in the effort, honing their skills, and effectively closing deals, they have the ability to increase their income potential.
Clear measurement of success: Performance-based compensation provides a clear and measurable indicator of success. Sales professionals can track their progress, identify areas for improvement, and set goals to increase their earnings.
While there may be risks associated with performance-based compensation, such as the possibility of not meeting targets or facing variability in income, it is generally considered a fair and rewarding system for sales professionals. It aligns their efforts with organizational goals and provides opportunities for growth and financial success based on their performance.
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Imagine you buy five burgers, two books, and a pair of jeans each period. In period 1,
burgers are $5, books are $12, and jeans are $30. In period 2, burgers are $6, books are
$14, and jeans are $28. What is the CPI based on your consumption?
Answers
Answer:
To find the answer, we use the Consumer Price Index (CPI) formula:
CPI = ( Cost of Market Basket in a Given Year / Cost of Market Basket in Base Year ) * 100
In this case, we will assume that the base year is period 1, and the given year is obviously period two.
Now, we simply plug the amounts into the formula:
CPI = ( 6 + 14 + 28 / 5 + 12 + 30 ) * 100
CPI = ( 48 / 47 ) * 100
CPI = 102.13
In other words, the inflation rate for this CPI was 2.13%
For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140. Marginal revenue at that output level is Group of answer choices equal to $140. greater than $140. less than $140. less than marginal cost. greater than average revenue.
Answers
A customer overhears a telephone conversation between her close friend and the friend's spouse, where the close friend mentions to her husband (who is the president of a large bank) how worried she is that she will have to move to California if her husband is successful in the takeover attempt of CalTrust Bank. The customer calls her sales representative at the broker-dealer where she maintains an account and places a market order to buy 1,000 shares of CalTrust Bank, which is immediately filled at $32.50 and then is reported by the agent to the customer. Who has violated the insider trading rules?
A The close friend
B The customer
C The agent
D All of the above
Answers
Explanation they heard something they shouldn’t have and made a move based on it which is highly illegal
What are two activities to do in china besides see the Great Wall?
Answers
Answer:
Explanation:
There are many interesting and fun activities to do in China besides seeing the Great Wall. Here are two options:
1. Visit the Terracotta Army in Xi'an:
The Terracotta Army is a collection of terracotta sculptures depicting the armies of Emperor Qin Shi Huang. The figures were buried with the emperor in 210-209 BCE and were rediscovered in 1974. Today, it's a UNESCO World Heritage site and one of the most popular tourist attractions in China.
2. Take a cruise down the Yangtze River:
The Yangtze River is the longest river in Asia and the third longest in the world. It flows through many famous Chinese cities like Chongqing, Wuhan and Shanghai. Taking a cruise down the river is a unique and relaxing way to experience the country's stunning natural scenery and rich cultural heritage. Along the way, you can also visit ancient villages, watch traditional performances and enjoy delicious local food.
PLEASE HELP ASAP::::
A tip employee’s earnings most closely resemble those of which of the following?
a.
An employee working on straight commission
b.
An employee working on commission plus salary
c.
An employee working on a piece-rate basis
d.
An employee working on a fixed salary
Please select the best answer from the choices provided
A
B
C
D
Answers
Answer: c. An employee working on a piece-rate basis
fashooo
what type of cost is never relevant and should be disregarded when making decisions?
Answers
Answer:
Irrelevant costs are those that will not change in the future when you make one decision versus another. Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.
Sunk cost is a type of cost that should be disregarded when making decisions.
Here, correct answer will be
Sunk cost is a cost that has already been incurred and cannot be recovered. It is a cost that has already been paid and cannot be changed, regardless of the present or future decision making process. For example, if you have already paid for a ticket to a concert, you cannot get the money back, even if you decide not to go to the concert.
Therefore, the cost of the ticket is considered a sunk cost and should not be taken into account when making decisions. It should be disregarded because they can lead to bad decision making and can cause people to act irrationally.
People tend to think that since they have already paid for something, they should get some sort of return on their investment, even if it means making a bad decision.
Therefore, sunk cost should be discarded when making decisions to avoid making irrational decision.
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Jeremy's boss told him that if production costs were brought down by 15% by the end of the year, they would be able to bring costs down for consumers. which type of strategy is jeremy's boss suggesting? multiple choice question. low-cost differentiation niche focused
Answers
The low-cost strategy is being recommended by Jeremy's supervisor.
Low cost strategy is a type of pricing strategy in which the firm offers the products at low price. This strategy helps to stimulate the demand & gain higher market share. The firm can gain cost advantages by increasing their efficiency, taking advantage of economies of scale, or by getting the raw material at low cost.
Many domestic airlines employ the low cost strategy, selling tickets for incredibly low prices to attract passengers and first-timers. This was made possible by frequenting the routes, providing a no-frills flying experience, and increasing the number of seats every trip. As a result, more individuals were able to fly in a variety of sectors thanks to several airlines cutting costs and generally lowering ticket rates.
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On her first day on the job, Sharon treats a patient who is highly anxious and worried. What advice from your book should Sharon keep in mind?It usually helps to point out to an emotional person that things could be much worse.If a patient is emotional, you should tell the person things will be okay, even if you are not sure what may happenSharon should find a more experienced person to take over the case.People usually appreciate it when others acknowledge their emotions and are willing to listen.
Answers
When encountering a highly anxious and worried patient, Sharon should keep in mind that people usually appreciate it when others acknowledge their emotions and are willing to listen.
Sharon, on her first day on the job, encounters a highly anxious and worried patient. In this situation, the advice from the book that Sharon should keep in mind is that people usually appreciate it when others acknowledge their emotions and are willing to listen.
When someone is experiencing strong emotions, it is important to validate their feelings and provide a supportive and empathetic environment. By acknowledging the patient's emotions, Sharon can create a sense of trust and understanding. She can reassure the patient that she is there to listen and help in any way possible.
While it is tempting to try to minimize the patient's worries by pointing out that things could be worse or by making promises about the outcome, these approaches may not be helpful. Each person's concerns and fears are valid to them, and it is essential to respect their emotions rather than dismiss or invalidate them.
Instead of making uncertain promises, Sharon should focus on providing reassurance and support. She can let the patient know that she understands their anxiety and is committed to working together to address their concerns.
Sharon can offer a listening ear and encourage the patient to express their fears and worries openly, ensuring that they feel heard and understood.
If Sharon feels overwhelmed or uncertain about handling the situation, it would be appropriate for her to seek guidance from a more experienced colleague or supervisor. This demonstrates her commitment to providing the best possible care for the patient and shows her willingness to learn and grow in her role.
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The output effect means that a firm will ______. Multiple choice question. sell more of one input when the price of another input falls and less of that particular input when the price of the other input rises purchase more of one input when the price of another input falls and less of that particular input when the price of the other input rises purchase less of one input when the price of another input falls and less of that particular input when the price of the other input rises purchase more of one input when the price of another input rises and less of that particular input when the price of the other input rises
Answers
Answer: Purchase more of one input when the price of another input falls and less of that particular input when the price of the other input rises
Explanation:
The Output effect is meant to explain what happens when the price of an input changes. If an input price increases for instance, production costs will rise and the company will have to buy less of other inputs to keep costs stable.
Conversely, if the price of other inputs fall, the company will see production costs fall which will enable them to purchase more of inputs which didn't change in price.
How does one's behavior affect business? Give at least two examples.
Answers
Aggressive workplace conduct puts workers at risk, hinders efficiency and damages the reputation of the organization. Even if violence is not overt, it ultimately erodes trust and morale and could lead to actions that are progressively worse.
A bond currently sells for $1,170, which gives it a yield to maturity of 5%. Suppose that if the yield increases by 30 basis points, the price of the bond falls to $1,140. What is the duration of this bond
Answers
Answer:
8.53 years
Explanation:
Calculation for the duration of the bond
The first step is to calculate for Change in Bond Price
Change in Bond Price = -(30)/1,170
Change in Bond Price = -0.0256×100
Change in Bond Price =-2.56%
Second step is to find the Effective Duration
Effective duration = -0.0256/0.0030
Effective Duration = 8.53 years
Therefore the duration of this bond will be 8.53 years
Which career field is likely to experience increased job openings and security over the
next few years? (10 points)
O Retail
O Nursing
O Government
O Manufacturing
Answers
Answer: government
Explanation:
Government is the career field is likely to experience increased job openings and security over the next few years. Hence, option C is correct.
What is Government is the career?Public Sector Employment is "a particular government responsibility or action. A "government job" is widely defined for recruitment purposes as any position in any department or entity that works for the government. Consequently, a position carrying out government business is a government employment ".
Among the job options in the U.S. government are political jobs working for the executive, judicial, and legislative branches of the federal government.
Government employees are employed by the military, the post office, federal law enforcement organizations, and other governmental agencies and departments.
Thus, option C is correct.
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you are an analyst preparing a forecast of the effects of macroeconomic changes in the economy. what happens to prices and gdp when corporate taxes rise in the economy?
Answers
As an analyst, you are planning a forecast of the effects of the economy's macroeconomic developments. When the economy's corporate taxes increase GDP and prices both decline.
Do taxes impact GDP in a positive or negative way?According to the study, a one percent GDP rise in exogenous taxes led to a three-year GDP decrease of almost three percent (12 quarters). A significant portion of the GDP decline was ascribed to a decline in domestic private investment and personal consumer spending.
What effects do higher business taxes have on the economy's pricing and GDP?Investment will decline and the aggregate demand curve will move to the left as a result of a reduction in the investment tax credit or an increase in corporate income tax rates. Both the price level and real GDP will decline.
What effect does economic forecasting have on business activity?Economic predictions are designed to anticipate quarterly or annual GDP growth rates, the top-level macronumber on which many companies and growth rates, the top-level macronumber on which many companies and governments base their choices regarding investments, hiring, spending, and other crucial decisions that have an impact on the overall economy.
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List several economic indicators. what is the purpose of measuring economic indicators? what do they measure? (site 1)
Answers
Economic indicators are important tools for understanding and assessing the performance of an economy. They measure various aspects of economic activity and provide valuable insights into the current and future state of an economy.
Economic indicators are measures used to assess the performance and health of an economy. They provide valuable insights into the current state and future prospects of an economy. Here are several commonly used economic indicators:
1. Gross Domestic Product (GDP): GDP measures the total value of goods and services produced within a country's borders. It indicates the overall economic activity and growth rate.
2. Unemployment Rate: This indicator measures the percentage of the labor force that is unemployed. It helps gauge the health of the job market and the economy's ability to provide employment opportunities.
3. Consumer Price Index (CPI): CPI measures the average change in prices of a basket of goods and services over time. It reflects inflationary pressures and helps monitor changes in the cost of living.
4. Industrial Production Index (IPI): IPI measures the output of the manufacturing, mining, and utilities sectors. It indicates the level of industrial activity and the overall health of the manufacturing sector.
5. Retail Sales: Retail sales measure the total value of goods sold by retailers. It reflects consumer spending patterns and provides insights into overall consumer demand.
The purpose of measuring economic indicators is to monitor and analyze the performance of an economy. These indicators help policymakers, businesses, and investors make informed decisions. They measure various aspects such as economic growth, employment levels, inflation, and consumer spending. By tracking these indicators, stakeholders can identify trends, assess risks, and develop strategies to promote economic stability and growth.
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The purpose of measuring economic indicators is to gain a comprehensive understanding of the economy's performance, identify trends, and assess the effectiveness of economic policies. ]
These indicators measure different aspects of economic activity, such as production, employment, inflation, and financial markets, providing insights into the overall economic well-being. Economic indicators are essential tools used to measure the overall health and performance of an economy. They provide valuable information about various aspects of economic activity, helping analysts and policymakers make informed decisions.
Several key economic indicators include: 1. Gross Domestic Product (GDP): It measures the total value of goods and services produced within a country's borders over a specific period, reflecting the overall size and growth of the economy. 2. Unemployment Rate: This indicator measures the percentage of the labor force that is unemployed, providing insights into the job market and economic conditions.
3. Consumer Price Index (CPI): It measures changes in the average prices of a basket of goods and services, indicating inflation or deflation levels.4. Stock Market Indices: These indicators, such as the Dow Jones Industrial Average or the S&P 500, track the performance of selected stocks, representing the overall health of the financial markets.
By analyzing these indicators, economists and policymakers can make informed decisions to promote economic growth, stability, and development. Overall, economic indicators play a vital role in monitoring and understanding the state of an economy.
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When Jaclyn selects a case of Sprite at the grocery store for her party, she is attracted by the holiday-themed box featuring green and white bells. What Jaclyn is seeing is referred to as the secondary package. True or False
Answers
When Jaclyn sees the holiday-themed box featuring green and white bells at the grocery store, what she is seeing is indeed referred to as the secondary package. It plays a crucial role in attracting customers, promoting the product, and creating a visually appealing presentation while the primary package ensures the protection and containment of the individual bottles of Sprite inside.
In the context of product packaging, primary packaging refers to the immediate layer of packaging that comes into direct contact with the product. It is designed to protect the product and maintain its integrity. For example, the primary package for a bottle of soda like Sprite would be the individual bottles themselves. They serve as the first level of packaging that contains and safeguards the product.
On the other hand, secondary packaging refers to the outer layer of packaging that holds the primary packages together. It is not in direct contact with the product but serves various purposes such as branding, marketing, and providing additional information about the product. Secondary packaging is often used to enhance the visual appeal of the product, attract customers, and convey specific messages related to promotions, seasons, or events.
In Jaclyn's case, she is attracted to a holiday-themed box featuring green and white bells. This holiday-themed box is the secondary package because it serves as an outer layer of packaging that holds the primary packages of Sprite together. The primary packages, in this case, would be the individual bottles of Sprite inside the holiday-themed box. The purpose of the secondary package is to catch the customer's attention, create a festive atmosphere, and promote the product during the holiday season.
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Bought goods
for
cash $100
to double
entry system.
Answers
Answer:Purchase account Dr.$100
cash account Cr.$100
Explanation:
What is motivation?
Answers
Answer:
C.
Explanation:
What is motivation very short answer?
Motivation is the process that initiates, guides, and maintains goal-oriented behaviors. It is what causes you to act, whether it is getting a glass of water to reduce thirst or reading a book to gain knowledge. Motivation involves the biological, emotional, social, and cognitive forces that activate behavior.
Select the scenario that best demonstrates the entrepreneurial mindset of taking initiative and
being self-reliant
A. Jon starts a café in his town. He observes that due to a drop in the economy, his café is not doing as well as expected. He hopes his business will pick up again once the economy is strong again.
B. Linda is developing a music app. However, she gets stuck many times while
writing the code. She considers giving up on her app and working under an
experienced person to develop apps.
C. Samantha works as a nail artist. To keep up with the competition and customer
demands, she expands her skill set with new techniques and designs in the market.
D. Steve works as a pizza delivery boy, but wants to start his own pizza parlor. It
will be difficult to make time to implement his business plan, so he is going to wait
for a better time to start his business.
Answers
Answer:
c.Samantha works as a nail artist. To keep up with the competition and customer
demands, she expands her skill set with new techniques and designs in the market.
Explanation:
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Which qualifications are most helpful for Foreign Service Careers? Check all that apply.
Foreign language skills
Stress management skills
Design skills
Independence
Math skills
Adaptability and flexibility
Answer: foreign language skills, stress management skills, and adaptability and flexibility
Answers
Answer:here's the right answer for this question
Explanation:edge2023
One of the historical trading abuses in the mutual fund industry was allowing selected investors to rapidly trade in and out of a mutual fund in order to profit on stale prices. This practice is called:
Answers
The practice of the investors who trade in and out of the fund in order to make profit is known as Market timing.
Market timing is defined as the predictions an investor makes about price movement.
In other word, the strategy is when investor tries to identify the best times to be in the market and when to get out.In conclusion, the practice of the investors who trade in and out of the fund in order to make profit is known as Market timing.
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A country with an absolute advantage can produce a good or service more slowly than another country. more efficiently than another country. less efficiently than another country. in twice the time as another country.
Answers
A country with an absolute advantage can produce a good or service more efficiently than another country and Option B is correct.
What is absolute advantage?Absolute advantage can be defined as an economic concept that talks about the superiority in production capabilities in comparison to the competitors.
Goods and services are produced more efficiently than others as less time and resources are consumed in order to produce a particular product or service.
A country that has an absolute advantage will not face any problems and competition because they are the leaders in the process of production.
Therefore, A country with an absolute advantage can produce a good or service more efficiently than another country.
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B. More efficiently than another country.
When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
Answers
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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what is the primary reason that globalization leads to greater global pollution? question 11 options: environmental protection is expensive, and reduces a company's competitiveness in the global market. increased carbon monoxide output results from both industrialization and infrastructure development. environmental regulations are enforced by nations rather than an international organization. companies that outsource and offshore their production have to use more energy to transport their finished goods.
Answers
Companies that outsource and offshore their production have to use more energy to transport their finished goods.
Globalization involves the integration of economies and societies through cross-border trade, investment, and cultural exchange. One of the effects of globalization is the rise of global pollution, which is primarily driven by the increased transportation and production activities associated with international trade. When companies outsource their production to countries with lower labor costs and weaker environmental regulations, they often have to transport their finished goods back to their home markets, which requires more energy and contributes to higher levels of pollution. Additionally, the industrialization and infrastructure development that often accompanies globalization can also lead to increased carbon monoxide output. While environmental regulations can help mitigate the negative impacts of globalization on the environment, they are often enforced by individual nations rather than an international organization, which can lead to inconsistent enforcement and ineffective regulation.
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You want to buy a new ski boat 2 years from now, and you plan to save $6,400 per year, beginning one year from today. You will deposit your savings in an account that pays 6.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now?
Answers
Answer:
Total Amount after 2 years = $13196.8
Explanation:
Data Given:
Amount of savings per year = $6400
Interest rate = 6.2%
Find Total Amount in account after 2 year:
Solution:
Lets consider it step by step.
Amount of money deposited in account after 1 year = $6400
After 2 years, we earn 6.2% interest on $6400,which is:
\(\frac{6.2}{100}\cdot6400= 396.8\)
So, after 2 years, BEFORE the 2nd deposit, we have $6400 + $396.8 = $6796.8 in the account.
AFTER 2nd deposit of $6400, total amount we have in account is:
Total Amount = $6796.8 + $6400 = $13196.8