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Alecsey [184]
3 years ago
14

You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,500

in two years. If you have an investment opportunity that guarantees 7% interest, how much must you invest to have the necessary funds to purchase the elliptical machines?
Business
1 answer:
maria [59]3 years ago
6 0

Answer:

Present Value= $19,652.37

Explanation:

Giving the following information:

You are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,500 in two years. If you have an investment opportunity that guarantees 7% interest.

PV= FV/(1+i)^n

PV= 22,500/ (1.07^2)= $19,652.37

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The Jones Family has an annual consumer spending of $82,000. This is calculated using this formula: C = A +MD where C is the consumer spending, A is the autonomous consumption spending, M is the marginal propensity to consume, and D is the disposable income. Thus, the calculation is C = $10,000 + (0.8)($90,000). Giving C a value of $82,000.
6 0
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2 years ago
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6 0
3 years ago
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