Lock the card, and contact the bank.
Answer:
the second option
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
first option
Cash flow in year 1 and 2 - $85,000
1 = 7
PV = $153,681.54
Second option
Cash flow in year 0 = $20,000
Cash flow in year 1 and 2- $74,000
I = 7
PV = $153,793.34
the pv of the second payment is higher than the first so the seconf would be choosen
To find the PV using a financial calculator:
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
153,681.54
The correct answer is D. None of the above.
All these which are given they are disadvantages of renting.
Some of the advantages of renting a home may determine with the style of living and financial situation of a person.
Some advantages of renting a home may include;
1. Landlord may be responsible for maintenance or any property which needs repair.
2. It is cheaper to rent than to own a house
3. There is a lot of flexibility when renting. For example, movement from one place to another.
The commission for the month of December is $2,767.60
Solution:
(1,258*10)= $12,580 we apply the 22% to that result and we obtain $2,767.60
