Question

Number 14 please

3503 FA18 HW 2- Word Insert Design Layout References Mailings Review View Tell me Kevin P... Sha File Home Arial Paste Paragraph Styles Account #1 pays simpie interest at rne rate or o.uro per year compounaea an nually or four years. How much could you withdraw at the end of year 4 from Account #1? a) b) How much could you withdraw at the end of year 4 from Account #27 c) Which account will you select? Why? 13. The cost of tuition at a certain public university was $160 per credit-hour 5 years ago. The cost today (exactly 5 years later) is $235. The annual rate of incroase is closest to (a) 4% (b) 6% (c) 8% (d) 10% 14. A company borrows $X at iytyr (PO) The loan is to be repaid according to the following schedule. Which of the following statements best represents what we know about the value of X End of Yoar Payment Amount $2,500 $2,500 $2,500 $2,500 (a) X> $10,000 $10,000 (b) X $10,000 (d) Nothing can be detormined about the value of X without knowing i 15. The costs associated with a particular process are expected to be $6,000 per year for five yoars, beginning three years from now At an interest rate of 8% per year, compounded annually, the present worth of these costs is closest to age 3 of 3 33 of 1072 words +100% ︿匹颩脈d, 8/28/2018 6 5:31 PM

Answer 1

14. Ans: d ) Nothing can be determined about the value of X without knowing i .

Explanation :

The present value of a loan amount can not be determined without any information about interest rate per year.