All categories

1 year ago

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

1 answer:

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

#SPJ1

You might be interested in

Candy is trying to decide between two job offers. The compensation package for job A includes a $300-per-month health insurance

miskamm [114]

Answer:

Part 1. Monthly health insurance benefit for job A is $205

Yearly health insurance benefit for job A is $2,460

Monthly health insurance benefit for job B is $295

Yearly health insurance benefit for job B is $3,540

Part 2. The yearly value of the life insurance policy for job A is $480

The yearly value of the life insurance policy for job B is $600

Part 3. The yearly value of the 401 (k) match from job A is $3, 250

The yearly value of the 401 (k) match from job B is $5, 760

Explanation:

Part 1. The health insurance benefit per month for job A = $300 - $95 = $205

The annual health insurance benefit = $205×12 = $2,460

The health insurance benefit per month for job B = $400 - $105 = $295

The annual health insurance benefit = $295×12 = $3,540

Part 2. The monthly life insurance plan for job A = $40

The yearly value of the life insurance policy for job A = $40 × 12 = $480

The monthly life insurance plan for job B = $50

The yearly value of the life insurance policy for job B = $50 × 12 = $600

Part 3. The yearly value of the 401 (k) match from job A = 0.05 × $65,000 = $3, 250

The yearly value of the 401 (k) match from job B = 0.09 × $65,000 = $5, 760

4 0

3 years ago

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are

lozanna [386]

Answer:

a. increase price in the short run but not in the long run.

Explanation:

The firms don't use resources that are available in limited quantities. So, as firm output increases, they can use resources in higher quantity but at the same price.

Therefore, as quantity demanded increases, the firms can supply higher quantity without any increase in resource cost. So, price increase in short run but not in the long term.

4 0

3 years ago

Please help I have no clue how to do accounting

levacccp [35]

Answer:

the picture not working

Explanation:

5 0

3 years ago

According to the affordable care act new health insurance marketplaces are established by the

jekas [21]

<span>According to the Affordable Care Act new health insurance marketplaces are established by the Patient Protection Act. This Act was put in place to let patients compare different health insurance companies and benefits to determine what is best for them. The benefits are dependent on how many people or an individual needs coverage and what type of coverage they are wanting to have. </span>

6 0

3 years ago

Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $250,000, $100,000, and $290,000, respectively. Sa

dmitriy555 [2]

Answer:

$160,000

Explanation:

The computation of budgeted cash payments in June is shown below:-

For computing the budgeted cash payments in June first we need to find out the may credit sales and June cash sales.

May credit Sales = May = $250,000 × 40% × 100%

= $100,000

and

June cash sales = $100,000 × 60%

= $60,000

Cash collection budgeted June = May credit Sales + June cash sales

= $100,000 + $60,000

= $160,000

5 0

4 years ago