Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Get quick and reliable solutions to your questions from a community of experienced experts on our 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
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
