Answered: how much will they have in three years,…

Business

Accounting

how much will they have in three years, if interest is 2.5% compound monthly?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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Springfield Florist plans to replace its delivery vehicle in three years. If they set aside $16,000 today, how much will they have in three years, if interest is 2.5% compound monthly? Show formula with values filled in. I have 2 different answer form Bartley?

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