xV xY $15 OlfASuccSncome from recyx Chapter 4 noen x\'a chapter 4 Home-xe Search

Question

xV xY $15 OlfASuccSncome from recyx Chapter 4 noen x'a chapter 4 Home-xe Search Textbook 201 Search Textbook connect.mheducation.com/flow/connect.html M Email SJAP "OK N Netflix e Rent FPL rin hulde, aK Dashboard l edXArajeek a pen for iPad 2 Net Saved Help Save & Exit Sub omework ck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to questior Income from recycling the paper and cardboard generated in an office building has averaged $3100 per month for the past 4 years what is the income stream's future worth at an interest rate of 12% per year, compounded semi-annually? The income stream's future worth is $ 228774.29 o

Explanation / Answer

Nominal interest rate = 12% compounding semi-annually

Effective annual interest rate = (1+12%/2)^2 – 1 =12.36%

So, monthly interest rate (R) = 12.36%/12 = 1.03%

Monthly income = $3100

Time = 4 years or 48 months

Now,

Future worth = 3100*((1+1.03%)^48 - 1)/.0103

Future worth = $191228.90

So, the correct answer of future worth is $191228.90.

Related Questions

Navigate

• Browse (All)
• Browse X
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.