Jason's opportunity cost rate is 8 percent compounded annually. how much must he deposit in an account today if he wants to receive $5,400 at the end of each of the next 10 years? use a financial calculator to determine the amount to be deposited today.

There're 2 answers:

1) If he want to receive both interest and principal of $5,400, the amount to be deposited today is $36,234. In this case, he doesn't receive any principal back.

2) If he want to receive interest of $5,400 only , the amount to be deposited today is $67,500. In this case, he can receive back $67,500 at end of deposit.

Explanation:

1) In excel there function to calculate this = PV(rate, number of payment, amount in each payment) = PV(8%,10,5400)

2) If $5,400 is interest  Jason can receive at end  of each year = Deposit amount x 8%; thus deposit amount is 67,500 = 5,400/8%

The answer is $ 11, 658.06

Explanation:

Using the compound interest formula

A = P ( 1+r/100)∧n

A= 5,400 (1+8/100)∧10

A= 5,400 ( 1.08)∧10

A= 5,400 ( 2.1589)

A= 5,400*2.1589

A = 11, 658.06

Therefore, he would deposit $ 11,658.06

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

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