Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
The amount of $12,000 is required to be invested today in order to receive $28,000 after 11 years of 8 %.
What is an investment?
Investment is an amount made by an entity to get benefits in upcoming years. It can be for a short time or a long time where a shorter investment is treated as a current asset and a longer investment consider a non-current asset.
Given values:
Invested amount = $28,000
Time period = 11 years
Interest rate = 8%
Computation of worth of investment today:
[tex]\rm\ Worth \rm\ of \rm\ investment\rm\ today ={\rm\ Invested \rm\ Amount}\times \frac{1}{(1+ Interest rate)} ^{\rm\ Time \rm\ period} \\\rm\ Worth \rm\ of \rm\ investment \rm\ today ={\$28,000} \times \frac{1}{(1+ 0.08)} ^{11} \\\\\rm\ Worth \rm\ of \rm\ investment \rm\ today={\$28,000} \times{0.4288} \\\\ \rm\ Worth \rm\ of \rm\ investment \rm\ today=\$12,000.864[/tex]
Therefore, the amount of $12,000 should be invested today to get $28,000 after 11 years at 8%.
Learn more about the investment here:
https://brainly.com/question/7259974
#SPJ1
Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.