1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Inessa [10]
3 years ago
7

1. A business acquaintance promises to deliver a $20 bill to you one year from today. How much should you be willing to pay toda

y for this promise? More than $20 Exactly $20 Less than $20 2. What is the present value of $1,000 received three years from today if interest rates are currently 6 percent? $943.40 $839.62 $1,191.02 $1,000.00 3. What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?
Business
1 answer:
riadik2000 [5.3K]3 years ago
6 0

Answer and Explanation:

The computation is shown below;

1. The willing amount to pay for the promise should be less than $20 that represents the time value of money

2. Now the present value is

= Received amount × discounting factor at 6% for 3 years

= $1,000 × 0.839

= $839

3. Now the interest rate is

As we know that

Future value = Present value × (1 + rate of interest)^number of years

$1,000 = $863.84 × (1 + rate of interest)^3

rate of interest =5% approx

You might be interested in
Which option in a webmail program allows you to type a new message? The option allows you to create a new message. NextReset
mixas84 [53]

Answer:

The "compose" or "draft" option allows you to type a new message.

3 0
3 years ago
A goal programming problem had two goals (with no priorities assigned). Goal number 1 was to achieve a profit of $2,400 and goal
topjm [15]

Answer:

100

Explanation:

Goal programming is an optimization technique that allows for multiple, normally conflicting objectives and then attempts to solve each goal sequentially to a satisfactory level. In goal programming, differential variables are being used.

Since the goal programming problem had two goals. Goal number 1 was to achieve a profit of $2,400 and goal number 2 was to have no idle time for workers in the factory. The optimal solution to this problem resulted in a profit of $2,300 and no idle time

This means that goal number 2 was achieved since the optimal solution resulted in no idle time. But goal number 1 was not achieved because a profit of $2300 was achieved in the solution instead of $2400.

Therefore, the value for the objective function for this goal programming problem = 2400 - 2300 = 100

7 0
3 years ago
The assets of Prosian Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million.
Kobotan [32]

Answer:

$220 million

Explanation:

According to given information in question:

Assets = $400 million

Liabilities = $180 million

Accounting Equation:

Assets = Equity + Liabilities

$400 million = Equity + $180 million

Equity = $400 million - $180 million

Equity = $220 million

Based on the accounting equation, Prosian Italia's owners' equity is equal to $220 million.

4 0
3 years ago
What must be the price of a $10000 bond with a 6.8% coupon rate, semiannual coupons, and eight years to maturity if it has a yie
Neko [114]

Answer:

Coupon (R) = 6.8% x 10,000 = $680

Face value (FV) = $10,000

Number of times coupon is paid in a year (m) = 2

No of years to maturity = 8 years

Yield to maturity (Kd) = 8% = 0.08

Po = R/2(1- (1 + r/m)-nm) +  FV/ (1+r/m)n m

                      r/m

Po = 680/2(1-(1+0.08/2)-8x2) + 10,000/(1 + 0.08/2 )8x2

                          0.08/2                              

Po = 340(1 - (1 + 0.04)-16)    + 10,000/(1 + 0.04)16

                      0.04                            

Po = 340(1-0.5339) + 10,000/1.8730

                 0.04

Po = 3,961.85 + 5,339.03

Po = $9,300.88

Explanation:

The current market price of a bond is a function of the present value of semi-annual coupon and present value of the face value. The present value of semi-annual coupon is obtained by multiplying the coupon by the present value of annuity factor at 8% for 8 years. The present value of face value is obtained by discounting the face value at the discount factor for 8 years. The addition of the two gives the present value of the bond. All these explanations have been captured by the formula.

3 0
3 years ago
What would be a barrier to a child’s mental development?
kirill [66]

Not having experiences that help them make good choices though out the rest of their lives. Also someone to guide them through times good and bad to help them make the right choices.

5 0
3 years ago
Other questions:
  • Idle time gaming, inc., has established clear standards of performance for its latest video game that will involve physical chal
    14·1 answer
  • Naomi is planning to get a job after graduating from college. Which explains why she should establish a positive credit history?
    8·1 answer
  • I have a fallacious argument is one that is based on
    11·1 answer
  • Programs designed to help only those with low incomes are called
    10·1 answer
  • Clark had no stock transactions in 2018​, so the change in​ stockholders' equity for 2018 was due to net income and dividends. I
    12·1 answer
  • Stores are overflowing with the latest vampire novel at $10. Store managers are frustrated with the lack of sales. The equilibri
    10·1 answer
  • Where Is Monetary Policy​ Stronger? In an open​ economy, changes in monetary policy affect both interest rates and exchange rate
    8·1 answer
  • When the future level of some variable is seen as a function of something other than time, the best forecasting models to use ar
    5·1 answer
  • Help!!!!!!!!!!!!!!!!!
    8·1 answer
  • Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company's most recent monthly contribution fo
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!