How much additional interest will you earn on $1,000 at 10 percent for 10 years if interest is compounded semi-annually instead of annually??
What will be an ideal response?
This problem illustrates the impact of more frequent compounding.? Annual compounding: $1,000(1 + .1)10 = $1,000(2.594) = $2,594?(PV = -1000; N = 10; I = 10; PMT = 0; FV = ?; FV = 2593.74.)? Semi-annual compounding: $1,000(1 + .1/2)10x2 = 1,000(1.05)20 =? $1,000(2.653) = $2,653?(PV = -1000; N = 20; I = 5; PMT = 0; FV = ?; FV = 2653.30.)?The difference in interest earned is $59.
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Answer the following statements true (T) or false (F)
1. The residual value is discounted as a single lump sum because it will be received only once, when the asset is sold. 2. The net present value method of evaluating capital investments suggests that an investment with discounted net cash inflows which exceed the initial cost of the investment is desirable. 3. The present value of future cash inflows received in earlier years is higher than future cash inflows received in later years. 4. An opportunity cost is the benefit foregone by choosing an alternative course of action. 5. When a company is evaluating an investment proposal with high risk, a low discount rate should be used.
Discuss the concept of a "material fact" in fraud situations
The annual Federal Unemployment Tax Return is:
A. Form W-4. B. Form 104. C. Form W-2. D. Form 1099. E. Form 940.
The difference between the highest and lowest values in the sample is known as the sample:
a. mean b. median c. range d. proportion