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Artist 52 [7]
2 years ago
11

U Do It Centers deposited $3,200 in an account two years ago and is depositing another $5,000 today. A final deposit of $3,500 w

ill be made one year from now. What will the account balance be three years from now if the account pays 4.85 percent interest, compounded annually?
Business
1 answer:
GaryK [48]2 years ago
4 0

Answer:

Total= $13,221.52

Explanation:

Giving the following information:

Deposited $3,200 in an account two years ago and is depositing another $5,000 today.

A final deposit of $3,500 will be made one year from now.

Interest expense= 4.85% compounded annually.

We need to calculate the final value of each deposit using the following formula:

FV= PV*(1+i)^n

First deposit= 3,200*(1.0485^5)= $4,055.01

Second deposit= 5,000*(1.0485^2)= $5,496.76

Third deposit= 3,500*(1.0485)= $3,669.75

Total= $13,221.52

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Answer:

$650

Explanation:

Guaranteed Residual Value = FV = $1,000

Interest rate = r = 9% = 0.09

Number of years = n = 5 years

Using Following formula we can calculate today's worth of the engine.

Residual value after 5 years = Today's value x ( 1 + rate of interest )^number of years

FV = PV x ( 1 + r )^n

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PV = $1,000 / ( 1.09 )^5

PV = $649.93

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Answer:

c. in which people are presented with ambiguous images

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A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. Th
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Answer:

$400

Explanation:

From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.

The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.

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