The answer to your question is TRUE
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Answer:
PV = $27,263.15
It will be needed to deposit the lump sum of $27,263.15
Explanation:
The question is asking for how much will you need to deposit in a lump sum today to withdraw for seven years the sum of $5,600 with an interest rate of 10%
In other words it is asking us for the preset value of an annuity of $5,600 with interest of 10%
Using the present value of an annuity formula of $1 we can solve for the present value of that annuity, which is the amount needed to generate this annuity
![C * \frac{1-(1+r)^{-time} }{rate}= PV\\](https://tex.z-dn.net/?f=C%20%2A%20%5Cfrac%7B1-%281%2Br%29%5E%7B-time%7D%20%7D%7Brate%7D%3D%20PV%5C%5C)
We post our knows value and solve it:
![5,600 * \frac{1-(1+0.10)^{-7} }{0.10}= PV\\](https://tex.z-dn.net/?f=5%2C600%20%2A%20%5Cfrac%7B1-%281%2B0.10%29%5E%7B-7%7D%20%7D%7B0.10%7D%3D%20PV%5C%5C)
PV = $27,263.15
Answer:
The discount rates were lowered
Explanation:
Discount rate is the rate that is used to determine the present value of future cash flows that will be spent in a project.
This is different from the cost of capital which is the amount that just meets the incurred cost of executing a project.
Discount rate determines of the benefits of the project are greater than the cost.
In the given scenario where benefits balance the cost, the project will be worthwhile is discount rate is lower.
That is there will be a lower cost of execution of the project so revenue will be higher than the cost
Answer:
The Answer is B. Quantitative data
Explanation:
The testing on the golf club, determined a improvement in the driving distance and this was measured numerically and showed in form of a percentage in comparison with average measurements.
When the information is presented with numerical data support, we can say its a quantitative data, because it tells us "how much?".
When the information is presented just with adjetives, telling us about the performance its a qualitative data, because it tell us "how things happened?"
A control variable is the data that is going to modified in order to see changes is the independent variable. In this case, the control variable could be the weight of the club (assumption), and the independent variable the driving distance data(not percentage).