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madam [21]
3 years ago
15

What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from tod

ay and the last payment is received 20 years from today
Business
1 answer:
Pepsi [2]3 years ago
4 0

Answer:

Present Value = $290.20

Explanation:

The present value of a future payment can be calculated with the following formula:

PV = FV / (1 + i)N

Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.

PV = Present Value = ?

FV = Payment = $4,400

i = 8.3% = 0.083

N = 20 - 6 = 14

PV = $4400 / (1 + 0.083)(20 - 6)

PV = $4400 / (1.083 * 14)

PV = $4400 / 15.162

PV = $290.1992

Present Value = $290.20 (Approximated)

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zubka84 [21]

Answer: Budgeting helps to plan, coordinate , delegate responsibility and enhancing clarity in pursuit of an organisation.

Explanation: Every budgets is principally prepared to achieve a set target  but there some limitations which makes it  difficult for some companies to prepare and follow through with a budgeted plan action. Some of these limitations at any given point in time affect the activities of the organisation. It may be traced to Production capacity, shortage of labour, materials, space, Finance and customer demand. This  limitation can at any point in time affect the overall plan of the organisation making it difficult to achieve their set target .

7 0
3 years ago
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"After a severe hurricane in South Carolina, the price of electric generators quadrupled. People living outside of South Carolin
Alona [7]

Answer:

Arbitrage

Explanation:

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In this case, the generator is more expensive in South Carolina when compared with other places. Thus, in order to earn riskless profit, people would buy where it is cheaper and sell at South Carolina where it is more expensive.

Economic theory suggest that if this kind of buying continues, soon the prices would be the same in both markets .

I hope my answer helps you

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3 years ago
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Match each type of employment with its definition (2 points)
Rainbow [258]

Each type of employment has been matched with its definition thus:

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  • Cyclical unemployment: Unemployment resulting from mismatches between  employer needs and employee skills.
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There are different causes of employment. Frictional unemployment is the timeframe between the period an individual lost his job and seeks another.

Structural unemployment is a result of inconsistencies in the labor market.

Cyclical unemployment occurs when the demand from the employee is not met with the skills of the employer.

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brainly.com/question/305041

4 0
2 years ago
A. by how much will gdp change if firms increase their investment by $11 billion and the mpc is 0.9?
Sliva [168]

Answer:

The answer is <u>"$110 billion".</u>

Explanation:

Firms increase their investment by $11 billion

mpc = 0.9

gdp = ?

To find the gdp, first we have to find expenditure multiplier;

we will find that by using the formula;

expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10

Now gdp = 10 x $11 billion

= $110 billion

Thus the <u>gdp is $110 billion.</u>

6 0
3 years ago
Which of the following is not a true statement about "demand"?
Afina-wow [57]

Answer:

Demand is the same as quantity demanded.

Explanation:

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