« previous next »

Author Question: Calculate the future value of an annuity of 5,000 each year for eight years, deposited at 6 percent. ... (Read 65 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jul 10, 2018
Calculate the future value of an annuity of 5,000 each year for eight years, deposited at 6 percent.
 
  What will be an ideal response?

Question 2

Lower (less positive and more negative) the correlation between asset returns, ________.
 
  A) lesser the potential diversification of risk
  B) greater the potential diversification of risk
  C) lower the potential profit
  D) lesser the assets have to be monitored


jliusyl

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jul 10, 2018
Answer to Question 1

FV = CF(1 + r)n - 1 / r = 5,000(1.06)8 - 1 / 0.06 = 49,487.34

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Future train Future train
Correctly administering and interpreting an intelligence test is a skill that takes many years for ... Correctly administering and interpreting an intelligence test is a skill that takes many years for ...
Review Cognitive Changes over the Adult Years Review Cognitive Changes over the Adult Years
CT imaging of glioblastoma in a 6-year-old girl. CT imaging of glioblastoma in a 6-year-old girl.
How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree? How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree?
New year kid drawing New year kid drawing
Video: Premenstrual Syndrome

For a complete list of videos, visit our video library