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lidiya [134]
3 years ago
13

Sheldon just joined a new gym and signed up for a one-year membership. Membership fees can be paid in 12 monthly payments of $60

, due at the beginning of each month or in one payment today. If the appropriate interest rate is 10%, how much should he pay today for the annual membership
Business
1 answer:
mestny [16]3 years ago
4 0

Answer: $688.17

Explanation:

He has to pay $60 every month on the first day or a lump sum.

The lump sum will be the present value of monthly payments.

This is a stable Cashflow and so is an Annuity and because it is done on the first day of the month it is an Annuity due.

Calculating present value of annuity due is;

= Annuity + Annuity (( 1 - ( 1 + r) ^ -(n - 1)) / r)

= 60 + 60 (( 1 - ( 1 + 0.833%)-¹¹) / 0.833%) )

=60 + 60* 10.4695

= $688.17

Note: interest rate must be divided into 12 to make it monthly rate.

=10%/12

= 0.833%

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Answer:

you should accept the payments because they are worth $56,451.91 today

Explanation:

We have to determinate the present value of the proposed annuity of $641 per month over a ten year spawn

Then, the value of the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 641.00

time 120 (12 months x 10 years)

rate 0.005416667

641 \times \frac{1-(1+0.00541666666666667)^{-120} }{0.00541666666666667} = PV\\

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3 years ago
The accounts receivable aging report:
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Answer:

A. includes a chronological summary of all transactions posted to individual patient ledgers/accounts on a specific day

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2 years ago
Factors leading to the slow growth of demand in embryonic industries include all of the following except the
wolverine [178]

Answer:

C) lack of venture capital for innovative products.

Explanation:

Embryonic industries are such industries that are at the beginning stage in their life-cycle. More specifically, newly established ventures are called the embryonic industry or firm.

Options A, B, D, and E all are wrong because a new firm may not produce high qualified first products. It may not have the right complementary products, the production cost may be higher than expected, and finally, there are a few distribution points. Those lead to the slow growth of the embryonic industry.

Option C is the answer because venture capitalists like to invest in innovative products, so there should not be a lack of capital.

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3 years ago
What is meant by assessment? Activities that occur between two or more businesses. Provides services for connecting network reso
stiks02 [169]

Answer:Documenting rules, procedures, and guidelines to be tested against a system.

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Assessment means to analyzing  someone or something  in respect of its quality, quantity and other such characteristics. Generally, assessment is done by comparing the actual results with some predetermined criteria .

Assessment is done by firms to know whether there is a problem, where it is and how it can be solved so that future losses could be saved.

Hence from the above we can conclude that the correct option is C .

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I'm not 100% sue but I think the answer is option D: District boundaries will remain the same, but the voting pattern will shift from Republican to Democratic. Hope this helps!
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