Answer:
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
Explanation:
We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944
If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.
First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)
Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)
Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)
Fourth payment future value = 3000*1.1=3300
Add them all up = 15315
This means that receiving 9000 today is better for us as we will have more at the end of 6 years.
If you do t plan on having it for a long time, then you don’t have to worry about the maintenance issues and upkeep.
Answer:
the gross domestic product is $9,700
Explanation:
The computation of the gross domestic product is shown below
= Consumption spending + government spending + gross investment + exports - imports
= $6,000 + $1,200 + $1,500 + $2,000 - $1,000
= $9,700
Hence, the gross domestic product is $9,700
We simply applied the above formula so that the correct value could come
And, the same is to be considered
To the nearest dollar, it would cost $3,564
