Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You developed a new product that had a profit of $446196 at the end of the first year. Your marketing team believes sales will continue

You developed a new product that had a profit of $446196 at the end of the first year. Your marketing team believes sales will continue to increase by 5% each year. If you deposit your profits into a bank account that pays 5% each year compounded annually, how much will you have in your account in 11 years? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").

please use provided notation

image text in transcribed

Factor Nam Formula Purpose (1+i)N Moves a single payment to V periods later in time Single payment F/P,i,N)compound amount factor (P/E,i,N) Single payment present Moves a single payment to V periods earlier in time worth factor Takes a single payment and spreads into a uniform series over Nearlier periods. The last payment (A/F, i, N) Sinking Fund factor n the series occurs at the same time as F Takes a uniform series and moves it to a single value at the time of the last payment in the series Uniform Series (F/A, i,N Compound Amount actor Takes a single payment and spreads it intoa uniform series over Nlater periods. The first payment in the series occurs one period later than P. (A/P, i, N) Capital Recovery Factor Takes a uniform series and moves it to a single payment one period earlier than the first payment of the series. Uniform Series Present Worth Factor Takes a arithmetic gradient (1+)N-IN-1 series aadment svoto (1+iy |periods earlier than the Arithmetic Gradient Present Worth Factor first nonzero payment of the series. Takes a arithmetic gradient series and converts it to a uniform series. The twO series cover the same interval, but the first payment of the gradient series 1S 0 (1 +-iN-1 Arithmetic Gradient to Uniform Series Factor (NG, i, M

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions