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Mariana [72]
3 years ago
12

An annuity will pay $1000 per year for 10 years, starting five years after today. What is the present value (PV) of this annuity

today, given that the interest rate is 7%?
Business
1 answer:
vodka [1.7K]3 years ago
7 0

Answer:

$5,007.72

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow each year from year one to five = 0

Cash flow each year from year six to fifteen = $1000

I = 7%

Present value = $5,007.72

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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3 0
3 years ago
According to the long-run Phillips Curve:
Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0
3 years ago
There's a lot of room for people to grow with this organization, hiring manager Myranda told the applicant. "But we expect a lot
Ray Of Light [21]

In this case it is a realistic view of the work. The manager makes it clear what the company intends with the employee. She explains that employment can offer good chances for professional growth, but also makes it clear that this will happen due to employee performance and consistent work. It is a realistic view of the job by presenting the benefits and duties of the employee.

4 0
3 years ago
Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for
Tanzania [10]

Answer:

499.80

Explanation:

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Mikey's long term capital gain = $4,950 - $2,400 = $2,550

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since he pays capital gains taxes = $2,550 x 20% = $510

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3 0
3 years ago
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erma4kov [3.2K]

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Moral judgement in business is very important as it indicates the decision taken by manager,firm, or any one in the organisation on behalf of the other is affect to the whole group.Whether the decision is right or wrong or doesn't affect the entire group negatively. example Giving salary less than in mentioned papers is not doing right thing to the personnel which is against company morals. Moral characters are the individuals who is judged by his or her consistent qualities.

7 0
3 years ago
Read 2 more answers
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