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
Assume that Juanita is indifferent between investing in a corporate bond that pays 12.00 percent interest and a stock with no gr
Dennis_Churaev [7]

Answer:

Juanita's marginal tax rate is 42.5%

Explanation:

marginal tax rate = MTR

After tax yield of dividend paying stock is 8.1% * (1-0.15) = 0.069 = 6.9%

The after tax yield of the bond will be 6.9%

Therefore,

6.9% = 12.0% * (1 - MTR)

6.9% = 12.0% - 12.0% *MTR

6.9% - 12.0% = -12.0% * MTR

-0.051 = -0.12*MTR

MTR = 0.051/0.12 = 0.425

MTR = 42.5%

3 0
3 years ago
U.s lifestyle shifts have expanded which of the following careers
alexdok [17]
US lifestyle shifts have expanded the careers for "daycare providers", since many more women have joined the work force in the past two decades--meaning that they can't be at home with their children. 
6 0
3 years ago
Thandi's boutique has employed under the age of 16 is it unethical
Veseljchak [2.6K]
It is not immediately unethical to employ someone under the age of 16, but if the workload of the child is that of an adult, it is not allowed. There are special laws that protect the health and safety of a young person in employment. The job of the child must be considered and must not be too heavy.
3 0
4 years ago
Match each word with the phrase: diversification- the period of time after people end their working careers, guaranteed- to prom
Sveta_85 [38]

Answer:

*Diversification => The practice of putting money into more than one kind of investment

*Guarantee => To promise and deliver a future result

*Return => The money earned on an investment in a certain period of time

*Liquidity => The ability to quickly convert something into cash

*Retirement => The period of time after people end their working careers

Explanation:

1. Diversification is the act of investing resources into different areas or sectors of an economy. For example, a company that produces mainly clothing and textile materials can decide to diversify by investing in other areas like agriculture or food processing.

2. Guarantee is usually the ability of a company to promise, for example, certain qualities of a product to the consumers, and also matching the promise with the actual fulfillment of what was promised to the consumers.

3. Return: for example, if I invest $5000 on a restaurant business, and after like 12 months, the money generated on the money invested is my returns.

4. Liquidity: for example, if I have harvested cash crops, and I need money immediately, I can easily generate cash by selling them. The ease at which an asset can be converted to cash is what is termed liquidity.

5. Retirement: virtually all careers have a set time when their employees are due for retirment. The period when one leaves a career officially, after spending a certain period of years in service, is what is termed retirement.

3 0
3 years ago
On January 1, 2015, Anna invested $5,000 at 5 percent interest for one year. The CPI on January 1, 2015 stood at 2.37. On Januar
Inga [223]

Answer:

The correct answer is c) 3.7 .

Explanation:

The first thing we should do is calculate inflation: (2.40 - 2.37) / 2.37 = 1.3

Inflation Rate = 1.3

2.) Calculate the real interest rate

Real interest rate = nominal interest rate - inflation rate

5 - 1.3 = 3.7

3.7 is the real interest rate

5 0
3 years ago
Other questions:
  • _____________ - a term referring to the fact that for many goods, as the level of production increases, the average cost of prod
    9·1 answer
  • Explain why intermediate goods and services usually are not included directly in gdp. are there any circumstances under which th
    7·1 answer
  • The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after
    9·1 answer
  • A recent study in your reading suggested that ______ spend 13% more than an average customer and refer business equal to 45% of
    12·1 answer
  • Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of
    9·1 answer
  • Even if prices are fixed and competition is restricted by the government, the invisible hand will still work in the economy and
    10·1 answer
  • For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a
    11·1 answer
  • Why is mobile banking considered riskier than online banking?
    14·2 answers
  • What were the consequences of mass production?
    14·1 answer
  • With critical internal metrics collected as part of the market information system, management is able to do two things. First, m
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!