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dem82 [27]
3 years ago
10

Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: The bank owes Sam $100 per y

ear forever. The 1st payment is due in 1 year. The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X.
Business
1 answer:
kodGreya [7K]3 years ago
4 0

Answer:

X=97.24

Explanation:

PV = Present Value = X+2000 by the 16th years

PMT = Payments = $100

FV = Future Value = 2000 at the end of 16 years

n= number of years

Applying the equation of future value for annuity

FV = pmt* ​((1+r)ⁿ - 1   )/r

Inputting the values;

2000=100*((1+r)¹⁶-1)/r

Solving for r, gives r = 2.9%

Therefore using the formula for PV for annuity;

PV=PMT*(1-(1/1+r)/r)

X=100*(1-(1/1.029)/0.029

X=100*((1-0.9718)/0.029)

X=100*(0.0282/0.029)

X=97.24

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The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entri
zvonat [6]

Answer:

e. $104,000.

Explanation:

The computation of the ending capital balance is shown below:

As we know that

Ending capital balance = Opening capital balance + net income - withdrawn amount

where,

Opening capital balance = $64,000

Net income is

= Revenues - expenses

= $100,000 - $48,000

= $52,000

And, the withdrawn amount is $12,000

So, the ending capital balance i s

= $64,000 + $52,000 - $12,000

= $104,000

8 0
3 years ago
If a company had a contribution margin of $1,000,000 and a contribution margin ratio of 40%, total variable costs must have been
dolphi86 [110]

Answer:

$1,500,000

Explanation:

Data provided in the question:

contribution margin of the company = $1,000,000

Contribution margin ratio = 40%

Now,

The sales = (contribution margin) / (Contribution margin ratio)

thus,

Sales = \frac{1,000,000}{0.40}

or

sales = $2,500,000

Therefore,

Variable cost = Sales - Contribution margin

or

Variable cost = $2,500,000 - $1,000,000 = $1,500,000

8 0
2 years ago
Economics: A group of competitors who work in unison to control the supply and price of their product is called a
7nadin3 [17]

Answer:

cartel

Explanation:

A "cartel" is a<em> group of competitors or market participants</em> who are independent from each other. They <u>work in unison by cooperating secretly</u> in an <em>unlawful way</em> so they can control the supply and price of their products. In this way, they can dominate the market.

Such type of alliance with rivals have existed since the ancient times. It <em>increased following </em><em>World War I,</em> but<em> started declining after </em><em>World War II</em>.

So, this explains the answer.

6 0
3 years ago
In which account are postage stamps classified?
castortr0y [4]
The answer to this is D
4 0
3 years ago
some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. this is an example of: group
tekilochka [14]

Some hotels ask their guests to rate the hotel's services as excellent, very good, good, and poor. This is an example of the ordinal scale.

What is ordinal scale and instance?

“Ordinal” indicates “order”. Ordinal information is quantitative information which have clearly happening orders and the distinction between is unknown. it could be named, grouped and also ranked. as an example: “How satisfied are you with our products?”

What is supposed by using ordinal scale?

The Ordinal scale includes statistical facts type in which variables are so as or rank however with out a degree of distinction between categories. The ordinal scale incorporates qualitative information; 'ordinal' that means 'order'. It places variables in order/rank, only allowing to measure the value as better or lower in scale.

What type of scale is ordinal?

The ordinal scale is the 2d degree of dimension that reports the ordering and ranking of records with out establishing the degree of version between them. Ordinal represents the “order.” Ordinal records is known as qualitative data or specific statistics. it is able to be grouped, named and additionally ranked.

Learn more about ordinal scale here :- brainly.com/question/13267344

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6 0
1 year ago
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