Answer:
a-1 Present value = 6,177.39
a2- Present Value =6,227.79
a3- Choose the payment stream with the highest present value = a2
b1- Present Value=3,353.98
b2-Present Value=2,805.28
b3-Choose the payment stream with the highest present value = b1
Explanation:
a-1 describes an ordinary annuity whose present value is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT=$800; i= 5%, n= 10
= 6,177.39
a2-
= 6,227.79
a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.
b1-
= 3,353.98
b2-
=2,805.28
b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.
Answer:
$354
Explanation:
Annual amount / 365 days or monthly amount /length of month = daily amount.
Therefore;
Daily amount x the numbers of days = proration.
$1,900 / 365 = $5.21 daily amount
(31 January days + 28 February days + 9 March days =) 68 days
$5.21 x 68 = $354
Therefore Jessica's share of the real estate taxes for the current year is $354
Answer:
<em>Risk capital</em>
Explanation:
Risk capital <em>relates to funds allocated to risky operation and used to invest heavy-risk, elevated-reward.</em>
Diversification is key to a successful risk capital investment, because the prospects of each investment appear to be undetermined in nature, although the yields may be far above average when an investment is successful.