Answer:
$1,565.48
Explanation:
This is an annuity due type of question since the recurring payments are made at the beginning of each year unlike Ordinary annuity whose payments occur at the end of each period.
With a financial calculator on beginning mode "BGN", use the following inputs to find the PV;
Total duration of investment; N = 3
Recurring payment; PMT = 550
Interest rate; I/Y = 5.5%
One time cashflows; FV = 0
then compute for Present value ; CPT PV = 1,565.476
Therefore, the most you should pay is $1,565.48
<span>By diversifying, investors help minimize : Risk
In investment term, diversifying means placing your investments into SEVERAL TYPE of investments (Such as placing some on bonds, placing some on IT market, placing some investment on food products, etc). By doing this, you won't lost all of your investment in case one type of market crashed down.
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Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $77,000
Useful life= 4 years
Salvage value= $13,000
Under the straight-line method, the depreciation expense remains constant during the life of the asset.
<u>To calculate the depreciation expense, we need to use the following formula:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (77,000 - 13,000) / 4
Annual depreciation= $16,000
Answer:
The correct answer is the option D: All of the above.
Explanation:
To begin with, the neoclassical theory of economic growth is considered to be one of the most well known and important theory in the economics sciences due to the fact that it establishes how the economy can grow and more important what are the key factors that need to be affect in order to that growth happens. Moreover, it states that a steady growth rate can be achieved only by the combination of three major factors that are: the labor, the capital and the technology. That is why that with the purpose to increase the GDP there will be a need in rise the productivity through an investment in human capital, in physical capital and in technology as well.
