1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
satela [25.4K]
2 years ago
13

Find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. also calc

ulate the present value if the $7,000 is received after two years
Business
1 answer:
ioda2 years ago
5 0

The present value of $7,000 that will be received in a year, at a discount interest rate of 3% per year, is $6,796.12.

The current value, if the $7,000 is received after two years, is $6,598.17.

<h3>What is the rate of annual discount?</h3>
  • The rate of return used in a discounted cash flow analysis to calculate the present value of future cash flows is called the annual discount rate.
  • The total of all future cash flows (C) over a holding term (N) is discounted back to the present using a rate of return in an annual discounted cash flow analysis (r).
<h3>How is the annual discount rate determined?</h3>

Rate of Discount Formula

First, the present value is divided by the value of a future cash flow (FV) (PV) The amount that remains after the previous step is then increased to the reciprocal of the number of years (n) The discount rate is then calculated by deducting one from the value.

learn more about annual interest rate here

<u>brainly.com/question/15728540</u>

#SPJ4

You might be interested in
John, a local florist in harrisburg, wanted to invest in outdoor advertising before valentine's day. a local advertiser showed j
Zina [86]
The local advertiser most likely offered John a Stock poster, a high-quality advertising at a lower cost. It is ready-made, 30-sheet posters are available in any quantity and often feature the work of<span> First-class artists and lithographers. Local florists, dairies, banks, or bakeries simply place their name <span>in the appropriate spot.</span></span>

 

 

 





3 0
3 years ago
Western company begins the year with $50,000 of inventory on hand. During 2018, western purchases additional inventory for $100,
slava [35]

Answer:

Debit cost of goods sold $40,000

Explanation:

As with the details of inventory we have:

Opening value of inventory = $50,000

Purchases = $100,000

Thus, total inventory = $150,000

On the closing date we have the balance of inventory in hand = $110,000

Therefore, cost of goods sold = Total inventory - Closing

= $150,000 - $110,000 = $40,000

Cost of goods sold is an expense, and shall be debited.

8 0
3 years ago
Sally works for Timber Products, Inc. The basis for her contribution under the Federal Insurance Contribution Act to help pay fo
Delicious77 [7]

Sally works for Timber Products, Inc. The basis for her contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is her ​annual wage base.

Answer: Option B

<u>Explanation:</u>

The contribution that Sally, who is working for Timber Products incorporation, has to make for federal insurance contribution act is based on the amount of wage that Sally gets on an annual basis or the wage that she gets in a year.

A part of that wage which is a particular percentage is paid to the federal insurance contribution act who is going to benefit her in case she incurs any kind of loss of income.

8 0
3 years ago
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4.9 pound
Stella [2.4K]

Answer:

Childress Company

Orders for K1 should be filled first.

Orders for G9 should be filled second.

Orders for S5 should be filled third.

Explanation:

a) Data and Calculations:

                                                               K1            S5           G9

Direct materials per unit (pounds)       4.9           2.4           5.4

Materials available for production = 58,400

Selling price                                      $ 167.40  $ 99.28  $ 210.02

Variable costs                                       89.00     76.00      149.00

Contribution margin per unit           $  78.40  $ 23.28   $   61.02

Contribution margin per pound         $16          $9.70       $11.30

Orders for K1 should be filled first

Orders for G9 should be filled second

Orders for S5 should be filled third.

b) This order filling sequence will maximize the contribution margin per pound, ensuring the highest efficient use of the limited materials available for production.

3 0
2 years ago
When making competitive priority decisions the firm: must ensure the pwp is correctly established must select the correct supply
snow_tiger [21]

When making competitive priority decisions the firm <u>"must make trade-off decisions".</u>


Making decisions requires exchanging off one thing against another.  

In economics, the term trade-off is regularly communicated as an opportunity cost, which is the most favored conceivable option. A trade-off includes a forfeit that must be made to get a specific item or experience. A man surrenders the chance to purchase 'great B,' since they need to purchase 'great A. For a man setting off to a ball game, their financial trade-off is the cash and time spent at the ballpark, when contrasted with the option of watching the diversion at home and sparing their cash, in addition to the time spent heading to the ball game.

5 0
3 years ago
Other questions:
  • Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1
    11·1 answer
  • Full meaning of NeRsA
    15·2 answers
  • Due to synergism, if you take two depressants together, it may be the same as taking __________.
    7·1 answer
  • The assembly department had beginning work in process of 18,000 units, ending work in process of 22,000 units, and units transfe
    10·1 answer
  • You are considering how to invest part of your retirement savings.You have decided to put $ 400 comma 000 into three​ stocks: 51
    9·1 answer
  • An 85-year old risk averse investor is not happy about the minimal return she is earning on her current investments. She is stre
    8·1 answer
  • Question 3 of 10
    12·1 answer
  • Oil Well Supply offers a 8 percent coupon bond with semiannual payments and a yield to maturity of 8.73 percent. The bonds matur
    11·1 answer
  • What does CPI stand for and what is it used to measure?​
    7·1 answer
  • What is nursing ?why is it needed?​
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!