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Dimas [21]
3 years ago
12

Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate

of 5%, consider the present and future values of this gift, depending on when you become engaged. Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today. Present Value Value in One Year Value in Two YearsDate Received (Dollars) (Dollars) (Dollars)Today 1,000.00 ? ?In 1 year ? 1,000.00 In 2 years ? 1,000.00Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years.The present value of the gift is _________ if you get engaged in two years than it is if you get engaged in one year.
Business
1 answer:
Vlada [557]3 years ago
7 0

Answer:

Date Received       Present Value      Value in 1 Year    Value In 2 Years

today                       $1,000                  $1,050                 $1,102.50          

in 1 year                   $952.38               $1,000                 $1,050

in 2 years                $907.03               $952.38               $1,000      

The present value of the gift is <u>LOWER (BY $45.35)</u> if you get engaged in two years than it is if you get engaged in one year.

Explanation:

to determine future value:

future value = present value x (1 + interest rate)ⁿ

to determine present value:

present value = future value / (1 + interest rate)ⁿ

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Answer:

0.40

Explanation:

The four firm concentration ratio = 10%+ 10% + 10% + 10% = 40% =0.40

I hope my answer helps you

5 0
3 years ago
The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year fro
belka [17]

Answer:

The amount after 2 years will be $460590

Explanation:

The payment which is done 2 year from today = $200000

The payment which is done one year from today = $150000

Rate of interest = 3 %

So the amount after 1 year

A=P(1+\frac{r}{100})^n=150000(1+\frac{3}{100})^1=$154500

The amount which is done today = $100000

So amount after 2 years

A=P(1+\frac{r}{100})^n=100000(1+\frac{3}{100})^2=$106090

So total amount after 2 years = $106090+$154500+$200000 = $460590

8 0
3 years ago
Assume that Smith Corp. will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an
WITCHER [35]

Answer:

maximum amount in dollar is payable = $344000

so correct option is a. $344,000

Explanation:

solution

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premium paid = 200000 pounds ×  $0.04

premium paid = 8000

and

amount payable in Dollar for 200000 pounds is

amount payable in Dollar = 200000 × $1.68

amount payable in Dollar = $336000

so whatever is happen in market

maximum amount in dollar is payable is

maximum amount in dollar is payable = $336000 + $8000

maximum amount in dollar is payable = $344000

so correct option is a. $344,000

3 0
4 years ago
When Beck's Bicycles, Inc., volunteered to send its expert riders up mountainous terrain to rescue a lost dog that was unable to
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public relations

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The effort quickly turned into an important public relations campaign for the firm.  This is the process in which a company manages how information is spread between them and the public/society that surrounds them. This is done in order to increase a company's following, relay information, or deal with a problem. Many times this is either done through social media or news outlets.

4 0
3 years ago
What are the most important benefits of using virtual reality in business training?.
N76 [4]

The most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world.

<h3>What is a Virtual Reality?</h3>

A Virtual Reality refers to a simulated experience that are very similar from the real world.

In conclusion, the most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world

Read more about Virtual Reality

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6 0
2 years ago
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