Answer:
Total PV= $522.92
Explanation:
Giving the following information:
First payment= $450 at the end of the 7th year
Second payment= $450 at the end of the 12 year
Interest rate= 6% compounded annually
<u>To calculate the present value, we need to use the following formula on each payment:</u>
PV= FV/(1+i)^n
Cf1= 450/1.06^7= 299.28
Cf2= 450/1.06^12= 223.64
Total PV= $522.92
Answer:
To mitigate damages
Explanation:
When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.
He is avoiding a situation where the property is to be left unoccupied for a period of time.
Mitigating damages is a way of reducing further loss when one party breaches a contract.
In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.
Average daily balance method a common method to calculate finance charges.
<u>Explanation:</u>
One of the most common ways through which the financial institutions for example the credit card companies calculate the financial charges that are to be paid by their customers and clients is the average daily balance method of the credit..
If this is the method used by your financial company also then you can reduce the financial charges that you have to pay by paying off the financial balance earlier than the billing cycle.
Answer:
No thanks I got school! Gl tho : )
Explanation: