« previous next »

Author Question: Calculate the future value of an annuity of 5,000 each year for eight years, deposited at 6 percent. ... (Read 67 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?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

How to calculate present value (Question 3) How to calculate present value (Question 3)
How to solve any percent change problem How to solve any percent change problem
Climate change occurs over millions of years Climate change occurs over millions of years
Top Eleven Countries in Year 2009 According to Three Different Measures Top Eleven Countries in Year 2009 According to Three Different Measures
Estimated number of new HIV infections per year over time period in Canada Estimated number of new HIV infections per year over time period in Canada
How to calculate the DRT to determine which is more effective against the pathogen How to calculate the DRT to determine which is more effective against the pathogen
Video: Hormonal regulation of pregnancy - weeks 17 through 38

For a complete list of videos, visit our video library