Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 4. a. compounding annually means that there i

4. a. Compounding annually means that there is one interest...

70.2K

Verified Solution

Question

Finance

4.
image
a. Compounding annually means that there is one interest payment period per year. So, \\( n=5 \\) and \\( i=r=0.08 \\). \\[ \\begin{array}{l} F V=P V(1+i)^{n} \\\\ F V=1,000(1+0.08)^{5} \\\\ F V=1,000(1.4693280768) \\\\ F V=1469.3280768 \\end{array} \\] Therefore, rounded to the nearest cent, the final answer is \\$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Determine the sample size n needed to construct a 99​% confidence interval to estimate the population...

Basic Math
Q

How wind force affect projectile velocity? what is the equation of projectile motion velocity x &...

Physics
Q

A callable bond has 15 years to maturity and can be called in 5 years. The...

Finance
Q

In a double slit experiment the slit separation is 1 mm What should be the...

Physics
Q

Select the correct statement s 1 Viscosity of gases Increases with Increase i Temperature 2...

Physics
Q

3 12 A spherical shell of mass M inner radius R and outer radius R...

Physics
Q

Choose the best unit of measure by writing inch foot yard ounce pound ton cup...

Basic Math
Q

4 Use L H pital s Rule to prove that the function 5 F x...

Calculus
Q

Crane Limited purchased equipment on February 1,2024, at a cost of $222,880. As the CFO...

Accounting
Q

Music Teachers, Inc., is an educational association for music teachers that has 19,900 members. The...

Accounting
Q

21)A small group of companies operate in an industry where all firms face the average...

Accounting
Q

Depletion entries Alaska Mining Co. acquired mineral rights for $16,354,000. The mineral deposit is estimated...

Accounting