1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liubo4ka [24]
3 years ago
12

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

You might be interested in
What is customer relationship?
rewona [7]
It is a way of managing a companies relationship with current and future relationships. Keeping a good name with your customers treating them right, in most business the customer is always right even if they are wrong.
3 0
3 years ago
Read the scenario and question below; then select the correct answer.
GuDViN [60]

Answer:

B) Comprehensive Resource Management

Explanation:

Comprehensive resource management requires that you follow standard procedures in order to:

  • identify requirements
  • perform inventories
  • ordering, storing and acquiring missing materials
  • mobilize resources including personnel, equipment and supplies

It is very important that you plan how to properly plan how to effective allocate your resources.

4 0
3 years ago
g The $1,000 face value bonds of Trident Corporation have coupon of 5.5 percent and pay interest semiannually. Currently, the bo
Maslowich

Answer:

The answer is 5.73%

Explanation:

Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2

NPER= Years of maturity *2= 12*2=24

PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75

Therefore:

Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%

Yield to maturity= Rate *2= 2.87*2= 5.73%

6 0
3 years ago
If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments an
Artemon [7]

Answer:

If the government sets out to make home buying easier for more people by forcing lenders to accept LOWER down payments and LOWER interest rates, the result will likely be an INCREASE in housing prices

Explanation:

If either interest rates or down payment amounts lower, the quantity demanded for houses will increase a little, possible leading to a small increase in the prices of houses.

If both interest rates and down payment amounts lower, then the quantity demanded for houses should increase a lot, which will result in an increase in the prices of houses.

This happened during the first decade of our century and everything was fine until the interest rates started to increase and people could no longer pay their mortgages and BOOM, the economy busted.

7 0
3 years ago
Suppose a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers i
wolverine [178]

Answer:

4/11 and 6/15 dressers.

Explanation:

Absolute advantage is the ability of a country to produce more of a product given the same resources than another country per unit time. It also applies when a country is able to produce same amount of goods with another country given less inputs.

So a country that produces more goods uses a more efficient process to get more output.

In this scenario a worker in Peru can produce 11 lamps or 4 dressers in a day and a worker in Canada can produce 15 lamps or 6 dressers in a day. Canada has absolute advantage in producing lamps and dressers, so importing these items will not be beneficial.

To get a balance where both countries will benefit a lamp will have to go for a ratio of each countrie's product to the opportunity cost.

That is for Peru to produce 4 dressers it will have opportunity cost of 11 lamps. So the ratio is 4/11.

Also for Canada to produce 6 dressers it will have opportunity cost of 15 lamps. So the ratio is 6/15.

Lamp should trade for between 4/11 to 6/15 dressers for both countries to benefit.

4 0
3 years ago
Other questions:
  • Charlton is the maker of a $200,000 promissory note payable to Development & Sales Corporation. Development & Sales indo
    11·2 answers
  • At the beginning of the year, Penny's "tax basis" capital account balance in the PAL Partnership was $60,000. During the tax yea
    11·1 answer
  • If the Federal Reserve adopts an expansionary monetary policy, A) interest rates fall and credit is tight. B) interest rates ris
    12·2 answers
  • For most business enterprises a market is:
    10·2 answers
  • The economic definition of money​ is:_________
    11·1 answer
  • A small company heats its building and spends ​$8 comma 000 per year on natural gas for this purpose. Cost increases of natural
    6·1 answer
  • Jeff, an employee at Citrus Inc., hears about a change in the company's leave policy from one of his coworkers and shares this i
    13·1 answer
  • Suppose a senator introduces a bill to legislate a minimum hourly wage of $6. This type of price control is called a
    10·2 answers
  • What is the Net Present Value of the following cash flow streams at an interest rate of 8.25%: at year 0: $0; year 1: $75; year
    5·1 answer
  • What change in the book value of the company's equity took place at the end of ?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!