Question

Assume you deposit $11,000 today into an account that pays 5% annual rate of interest. How much will be in the account in 5 years? Clearly, completely and precisely show how you applied BOTH the correct table and the correct equation to solve this problem. 6 points 10. If the annual dividends are $20 million, the annual Interest is s10 million, the depreciation allowance is s15 million, the EBIT is $100 million, and the EAT is $50 mililon, find and calculate the cash coverage ratio.

Answer 1

To calculate the amount in the account after 5 years, you can use the formula for compound interest.

Step-by-step explanation:

To calculate the amount in the account after 5 years, we can use the formula for compound interest:

Future Value = Principal * (1 + Interest Rate)^Time

Plugging in the given values, we have:
Future Value = $11,000 * (1 + 0.05)^5
Calculating this, we get:
Future Value = $11,000 * (1.05)^5
Future Value = $11,000 * 1.2763
Future Value = $14,039.33

Therefore, the amount in the account after 5 years is approximately $14,039.33.