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adoni [48]
1 year ago
14

What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent?

Business
1 answer:
Marat540 [252]1 year ago
3 0

The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent  will be $6, 395.31.

What does Present Value mean?

A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.

What is Financial concept?

Financial concepts are the fundamental principles and theories of finance, which provide guidance on how to assess and manage financial risks, return, and value. These concepts include the time value of money, diversification, risk-return trade-off, capital budgeting, and portfolio selection. Financial concepts are essential for making sound financial decisions and investments.

The procedure to find an present value:

Present Value = FV/ (1+i)^n

6,811/(1+0.065)^1

6, 395.31

To know more about Present value,

brainly.com/question/15904086

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A) strategic
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3 years ago
Suppose that $ 5 000 is invested at 3.9 % annual interest​ rate, compounded monthly. How much money will be in the account in​ (
BlackZzzverrR [31]

Answer:

(A) $5,131.5

(B) $12,729.5

Explanation:

The interest earned on the value of interest earned before is the compounded interest. Compounding is the reinvestment of the amount earned before and take return over it too.

As per given data

Invested amount = $5,000

Interest rate = 3.9%

Interest is compounded monthly

Monthly rate = 3.9% / 12 = 0.325%

Formula for the accumulated amount of investment

A = P ( 1 + r )^n

Accumulated Money when $5,000 is

(A) Invested for 8 months

A =  $5,000 ( 1 + 0.325% ) ^8

A = $5,131.5

(b) Invested for 24 years or 288 months (24 x 12)

A =  $5,000 ( 1 + 0.325% ) ^288

A = $12,729.5

4 0
3 years ago
Read 2 more answers
The Cromwell Company sold equipment for $35,000. The equipment, which originally cost $120,000 and had an estimated useful life
Alla [95]

Answer:

B

Explanation:

Original Cost -$120,000

Useful life -10 years

Residual Value - $20000

Annual depreciation - $(120,000-20000)/10 = $10,000

Accumulated depreciation for 4 years = 10*4= $40000

Book value at disposal = $120,000-$40000= $80000

Sales value = $35,000

Loss on disposal = $80,000-$35000= $45,000

5 0
3 years ago
Troy Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year, with an annual demand o
timurjin [86]

Answer:

Safety Stock is 336.62 units

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As per given data

Demand = D = 50,000

Ordering Cost = S = $35

Holding Cost = H = $1 per unit per year

Weekly Demand = Demand / 50 weeks = 50,000 / 50 = 1,000 units per week

Weekly Demand during Lead time of 3 weeks = 1000 x 3 = 3,000 units

Standard Deviation = 216.51 units

Desired Service level = 94%

The Z score at 94% service level is 1.55477  

Safety Stock = Zscore x standard deviation = 1.55477 x 216.51

Safety Stock = 336.62

8 0
3 years ago
A bowling alley charges each person $2 to rent shoes and $3 per game. Which function represents The rate of change of the functi
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Answer:

The function is, y = 2 + 3x

The rate of change of the function is 3.

The y-intercept of the function is 2.

Explanation:

Given,

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Now, for y-intercept,

x = 0,

y = 2 + 3(0) = 2

So, y-intercept of the function is 2.

6 0
3 years ago
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