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KATRIN_1 [288]
1 year ago
9

What is the present value of an ordinary annuity of $500 a year for 6 years assuming an interest rate of 9%?.

Business
1 answer:
il63 [147K]1 year ago
7 0

PV = <u>$2,242.96</u>

The present value of an ordinary annuity of $500 a year for 6 years assuming an interest rate of 9% is<u> </u><u>$2,242.96</u>

<h3>What is the interest rate?</h3>

The fee that a lender assesses on a borrower is known as the interest rate, which is expressed as a percentage of the principal, or the loaned amount. Usually, the annual percentage rate (APR), which is how loans' interest rates are expressed, is noted (APR).

In its simplest form, interest is a charge imposed on the borrower for using a resource. Assets that have been lent include cash, goods, vehicles, and real estate. It is possible to think of higher interest rates as the "cost of money" because they make borrowing the same amount of money more expensive.

The majority of lending and borrowing transactions, therefore, involve interest rates. People take out loans to buy homes, finance initiatives, start or fund businesses, or cover college tuition. Businesses obtain loans to finance capital projects and grow their operations by acquiring long-term and fixed assets like real estate, buildings, and equipment. The repayment of borrowed funds can be made in one lump sum by a specific date or over the course of several payments.

Thus, $2,242.96 is the present value.

For more information on the Interest rates, refer to the given link:

brainly.com/question/13324776

#SPJ4

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On Saturday morning, you rank your choices for activities, from most preferred to least preferred, in the following order: go to
Sophie [7]

Answer: Work out at the gym

Explanation:

Opportunity cost of a decision is the next best alternative that would have been picked if the current decision wasn't made. For example suppose you would either eat chips or meat and you chose to eat meat. The chips are an opportunity cost of the meat.

In the same vein, the opportunity cost of going to library would be your next best (preferred) activity which in this case would be to work out at the gym.

In order words when you go to the library, you are giving up a chance to go to the gym.

5 0
3 years ago
Timothy, LLC, originally budgeted $10,000 of costs to produce 100 toy cars. $5,000 of these costs consisted of direct labor, $1,
dolphi86 [110]

Answer:

$1,600

Explanation:

Budgeted raw material cost per toy car:

= Total budgeted raw material cost ÷ Budgeted production(in units)

= $1,000 ÷ 100 toy cars

= $10 per toy car

Flexible budget of raw material:

= Actual number of toy cars sold × Budgeted raw material cost per toy car

= 160 × $10 per toy car

= $1,600

Therefore, the flexible budget amount of raw materials is $1,600.

3 0
3 years ago
When firms exit a market, the _________, causing individual firms’ profits to _________.
Tpy6a [65]

Answer:

<em>When firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

Explanation:

The process of <em>free entry and exit of firms</em> is in a sequence as explained under-

  1. If there is higher demand in the market of the product as compared to its supply, then each firm in the market will receive higher price for its product.
  2. This will increase the prices of the product, enabling higher profits for each firm. This will make the industry attractive, enabling the introduction of newer firms in the market.
  3. When the new firms enter the industry, the prices of the product in the market will drop due to higher competition, now present currently. This will lead to lowering of profits for the firms in the industry.
  4. This will make the industry non-attractive and thereby the less competitive and less effective firms will exit the market in the short run.
  5. This exit of firms from the industry, will lead to higher prices again due to less supply of product in the market as compared to its demand. Hence, the profits of the firms present in the industry will increase.

Thus, it can be concluded that <em>when firms exit a market, the short-run market supply curve shifts left, causing individual firms’ profits to increase.</em>

4 0
3 years ago
Read 2 more answers
Only the United States has embassies.<br> True or False
Svetradugi [14.3K]

False most countries have embassies


6 0
3 years ago
Northwestern Data Systems has adopted a new organizational approach with regard to information flow, ensuring that employees hav
bija089 [108]

Answer:

neither she nor her supervisor has any demonstrable reason to access such information.

Explanation:

When security measures are introduced in information system access in an organisation, an individual is limited to only a defined set of data.

Access to data outside one's normal job role requires a request for addition of such access.

In the given instance Northwestern Data Systems has adopted a new organizational approach that ensures employees have access to the only data they need.

Stacy, an administrative assistant requests a report regarding disciplinary action on a manager outside her department.

She will not be able to get it because she should normally not be able to discipline a manager.

So she can't access it because neither she nor her supervisor has any demonstrable reason to access such information.

3 0
3 years ago
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