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Homework answers / question archive / 1) Find the accumulated value of 8 annual deposits of $590 one year after the last deposit, at an effective annual interest rate of 3%
1) Find the accumulated value of 8 annual deposits of $590 one year after the last deposit, at an effective annual interest rate of 3%.
2)An investment fund is established at time 0 with a deposit of 5,000. 1,000 is added at the end of four months, and an additional 4,000 is added at the end of 8 months. No withdrawals are made. The fund value, including interest, is 10,560 at the end of 1 year.
3)The weighted average approach is central to____
a.Both compensatory and non compensatory decisions.a.
b.Compensatory decisions.
c. Non compensatory decisions.
d. Non systematic market selection.
1)
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=590*(1.03)^8+590*(1.03)^7+590*(1.03)^6+590*(1.03)^5+590*(1.03)^4+590*(1.03)^3+590*(1.03)^2+590*(1.03)
=$5403.87(Approx)
2)Please use this google drive link to download the answer file.
https://drive.google.com/file/d/1JireTcrC2ZehF8j6zYx6AJ0Cv7vdghoz/view?usp=sharing
Note: If you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process.
https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link
3)
Answer : Correct Option is (b.) Compensatory Decisions.
Reason :
Compensatory Decisions models, is a weighted average method where the importance is measured by assigning weights to attributes.
