The present value of the cash-flow stream if the interest rate is 6% is $323.03.
<h3>What is the interest rate?</h3>
The interest rate can be defined as the amount or the percentage that is being fixed or fluctuating depending upon the condition of the agreement. The interest is calculated on the amount that is being loaned or given to the individual or a company.
According to the given question, the interest rate is 6%
1st year $120
2nd year $320
3rd year $220
Now, by applying the formula for the present value:
= 113.20 + 284.96 + 184.87
= 323.03
The present value of the cash flow stream is $323.03
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Answer:
you owe $43.47 in one month
Explanation:
Daily Interest (for one month) = Balance × APR rate × [number of month / Total month in a year]
Daily Interest = $1800 × 28.99% × 1/12
= $1800 × 0.2899 × 0.0833
= $43.47
Answer:
c. Wilma (and each of the members) pays taxes on their $1 million share ($5 million divided by 5) of profits.
Explanation:
Data provided in the questions
Generated profits = $5 million
Reinvested amount into the company = $4 million
Out of which $1 million is to be divided equally
based on the above information, the federal income tax should be paid by 5 members of $1 million each
Hence, the option c is correct
And all other options are wrong
Answer:
d. horizontally summing individual supply curves.
Explanation:
Each firm will have its own supply curve depicting the relationship between the price and the quantity of goods it is willing to produce at that given price. The market supply curve is obtained by aggregating the different firm supply curves i.e. the total quantity suppliers are willing to produce when the product is sold for a given price.
Based on the above, option d is the correct answer.
Answer:
Correct option A
Explanation:
Pareto efficiency implies that resources are allocated in the most economically efficient manner, but does not imply equality or fairness.
The manager at the local branch has offered transfer to Austin, this simply implies that the resources spent on Austin will be reallocated to other areas.
Therefore, this will make the manager better off with the transfer and not worse off.
