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Ganezh [65]
2 years ago
8

A charity plans to invest annual payments of $60,000, $70,000, $75,000, and $50,000, respectively, over the next four years. The

first payment will be invested one year from today.
Assuming the investment earns 5.5 percent annually, how much will the charity have available four years from now?

a) $263,025 b) $328,572 c) $236,875 d) $277,491 e) $285,737
Business
1 answer:
Brrunno [24]2 years ago
5 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

A charity plans to invest annual payments of $60,000, $70,000, $75,000, and $50,000

We need to use the following formula for each deposit:

FV= PV*(1+i)^n

Deposit 1= 60,000*(1.055)^3= $70,454.48

Deposit 2= 70,000*(1.055^2)= $77,911.75

Deposit 3= 75,000*(1.055)= $79,125

Deposit 4= 50,000

Total= $277,491.23

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Answer:

<u></u>

  • <u>17.5%</u>

Explanation:

The <em>expected return</em> is the weighted average of the expected returns in each scenario by its respective probability.

The <em>distribution of the holding period returns </em>(HPR) under three different scenarios is:

State of the economy    Scenario #(s)     Probability, p(s)    HPR

HPR Boom                         1                            0.336              28.40%

Normal growth                  2                           0.414                7.90%

Recession                          3                           0.25                18.90%

The calculations are:

        E(HPR) = 0.336\times 28.40\%+0.414\times 7.90\%+0.25\times 18.90\%

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How do you feel about airlines mining your in-flight data? is there any difference from companies mining your credit card purcha
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Answer:

Explanation:

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