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igor_vitrenko [27]
3 years ago
12

Assume that you borrowed money from your grandmother to attend college. Your deal with her is that you will pay her $1,000 per y

ear for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%, what is the present value of these ten payments?
Business
1 answer:
Fudgin [204]3 years ago
3 0

Answer:

PV= $7,721.73

Explanation:

Giving the following information:

Your deal with her is that you will pay her $1,000 per year for the next ten years with the first payment occurring at the end of this year. If your discount rate is 5%.

To calculate the present value we need to use the following formula:

NPV= ∑[Cf/(1+i)^n]

For example:

Year 4= 1,000/1.05^4 822.70

Year 8= 1,000/1.05^8= 676.84

NPV= $7,721.73

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pensions and more paid vacation time

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3 years ago
The Republic of South Africa exports edible fruits and nuts into the common market known as the European Union, and imports from
Ugo [173]

Answer:

C) The theory of Comparative Advantage

Explanation:

The theory of Comparative Advantage is a theory of international trade and it comes into effect in a situation where the <u>opportunity cost of producing a good or offering by a service by a country is lower than that of other countries. </u>

Specifically, to understand the theory of comparative advantage the opportunity cost of production or offering a service has to be measured in terms of the trade off between those countries. It simply means when a country has the comparative advantage then it derives more benefits from other countries buying its products as compared to buying their products and vice versa.

In the question, the European Union has the Comparative advantage over South Africa because the trade-off between buying South Africa's edible fruits and nuts and selling other products to South Africa benefits the European countries.

European countries derive more benefits because South Africa buys their goods at a cost higher than it takes them to produce while they buy at the normal cost from South Africa. The <u>trade-off benefits Europe </u>

8 0
3 years ago
Which of the following is NOT a characteristic of effective promotion? *
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Answer:

i think no.1

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8 0
3 years ago
IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 6​% a year. The price of IBM is $90 per sha
Elena-2011 [213]

Answer:

Cost of equity = 8.22%

Explanation:

Cost of equity = Dividend per share /current market value + growth rate of dividend  

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7 0
3 years ago
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. Thi
Marina CMI [18]

Answer:

other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee. 

Explanation:

This question is incomplete. Please check the attached image for a complete question.

A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.

The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.

I hope my answer helps you

3 0
3 years ago
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