Ask Question
BusinessBusiness
5 June, 05:18

Finance. A person wishes to have $ 18 comma 000 cash for a new car 3 years from now. How much should be placed in an account now, if the account pays 6.1 % annual interest rate, compounded weekly?

+4
Answers (1)
  1. 5 June, 07:20
    0
    The amount that would be placed in an account now that would result in $18000 in three years is $14,991.43 at 6.1% annual interest when compounded weekly

    Explanation:

    The formula of present value can be used in determining the amount to be invested now to reach $18000 in 3 years

    PV=FV * (1+r/t) ^-Nt

    FV is the future amount of $18000

    r is the rate on the investment at 6.1% per year

    N is the number of years at 3

    t is the number of period in a year when interest is compounded, that is 52 weeks

    PV=18000 * (1+6.1%/52) ^-3*52

    PV=18000 * (1+0.001173077) ^-156

    PV=18000 * (1.001173077) ^-156

    PV=$14,991.43
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Finance. A person wishes to have $ 18 comma 000 cash for a new car 3 years from now. How much should be placed in an account now, if the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Burnham & Company's $75 par value preferred stock pays an annual dividend of $11. The stock has a beta of 0.85, the current T-bill rate is 2.4%, and the S&P 500's expected return is 11.3%.
Answers (1)
What are two ways in which long-term economic growth is measured?
Answers (1)
At the end of 2011, retained earnings for the bisk company was $3,050. revenue earned by the company in 2011 was $1,935, expenses paid during the period were $1,065, and dividends paid during the period were $550.
Answers (1)
Suppose the United States has a comparative advantage over Mexico in producing pork. The principle of comparative advantage asserts that
Answers (1)
Jeff tells Judy about the possible changes in overtime policy the company is going to adopt while eating lunch in the break room. Although no official announcement has been made, Judy knows someone who works in HR who says changes will be made.
Answers (1)
New Questions in Business
Wims, inc., has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,000. a. What is the value of the shareholders' eq
Answers (1)
Businesses are most likely to grow during which of the following phases of the business cycle? A. expansion B. contraction C. trough D. recession
Answers (1)
Zero Corp. suffered a loss having a material effect on its financial statements as a result of a customer's bankruptcy that rendered a trade receivable uncollectible.
Answers (2)
Upward communication among organizational members at the same level can facilitate task coordination, provide means of sharing information, provide formal channel of communication for problem solving, and facilitate mutual support for staff involved.
Answers (1)
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own businesses. The money was lent at 9% and 11% simple interest rates.
Answers (1)
Home » Business » Finance. A person wishes to have $ 18 comma 000 cash for a new car 3 years from now. How much should be placed in an account now, if the account pays 6.1 % annual interest rate, compounded weekly?
Sign Up Forgot Password?