Answer:
The present value of the annuity is $73,091.50
Explanation:
Use the following formula to calculate the present value of the annuity
Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor for 6 years ]
Where
Annuity Payment = $1,000
Annuity factor for first 6 years = 1 - ( 1 + 16%/12 )^-(6x12) / 16%/12 = 46.10028344
Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820
Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163
Placing values in the formula
Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]
Present value of annuity = $46,100.28 + $26,991.22
Present value of annuity = $73,091.50
Answer:
(A) less
Explanation:
Given a positive inflation rate, the real value of the dollar will depreciate by the rate of inflation annually.
Thus, for a house that cost $100,000 today, given a 3% inflation rate, it would cost (100,000 * 1.03 = ) $103,000 after a year.
This means, $100,000 today will have the same value as $103,000 one year later.
Therefore, repayments, which will likely be a fixed sum every year, will have a lower purchasing power as the year progresses.
Answer:
Arithmetic average is 3.15% and Geometric average is 2.33%.
Explanation:
Answer:
1.which of the following is a type of business structure?
a. sole proprietorship
b. partnership
c. corporation
<em>d. all of the above </em>
2.location, utilities, employees and suppliers are all examples of costs.
<em>true</em> or false
3.revenue is the money that flows into your company.
<em>true </em>or false
4. how can you determine if a company is profitable?
<em>a. by subtracting it’s expensive from its revenue </em>
b. by looking at its revenue only
c. by asking the employees
d. by looking at expenses only
5. define ethics
<em>a. The discipline dealing with what is good and bad and with moral duty and obligation </em>
b. always being good
c. following the rules
d. what country you are from
7. consumers have no responsibility related to their right
true or <em>false</em>
