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3 years ago

What is the present value of $900 annuity payment over 6 years if interest rates are 10%

Business

1 answer:

Rudik [331]3 years ago

8 0

Answer:

$ 508.03

Explanation:

To calculate present value of an annuity, N, we can use the formula;

$N=\frac{A}{(1+r)^n}$

From the question, the future value of the annuity is A=$900, the percentageW interest rate per compounding period is r=10%=0.1, and the number of deposit to be made in the annuity is n=6

We plug the values into the formula to get:

$N=\frac{900}{(1+0.1)^6} = \frac{900}{1.1^{6} } = 508.03$

Therefore the present value is $508.03

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eduard

Answer:

$17.9469

Explanation:

Calculation for what dollar wage must be paid in the third year

Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.

The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.

In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.

Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).

Therefore what dollar wage must be paid in the third year will be $17.9469

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5.ABC Company is planning to market a new model of product X. The management

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Answer:

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Deep Hollow Oil issued 135,000 shares of stock last week. The underwriters charged a spread of 8.05 percent in exchange for agre

Neporo4naja [7]

Answer:

The ratio of flotation cost to funds raised is 20.13%

Explanation:

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The total amount raised is $ 4,096,372.50 (135000*$30.3435 ),while total flotation costs are as follows:

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However, the flotation costs as a percentage of funds raised is given below:

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Answer:

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The three legal forms of business ownership are _____.

fredd [130]

The three legal forms of business ownership are partnership, sole proprietorship, and corporation. The correct option among all the options that are given in the question is the fourth option or the last option or option "d". I hope that this is the answer that has actually come to your desired help.

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