The preferred gig is the first one since its today's worth is greater than the today's value of the second gig
What is the today's worth of $5000 each year?
The worth of the second gig, which pays $5000 every year for the next 6 years in today's dollar is the present value of all the six annual cash flows discounted using the present value formula of an ordinary annuity as shown below:
PV=PMT*(1-(1+r)^-N/r
PV=present value of annual payments for 6 years=unknown
PMT=annual payment=$5000
r=required return=discount rate=8%
N=number of annual cash flows=6
PV=$5000*(1-(1+8%)^-6/8%
PV=$5000*(1-(1.08)^-6/0.08
PV=$5000*(1-0.630169626883105)/0.08
PV=$5000*0.369830373116895
/0.08
PV=$23,114.40
The fact that the present value of the second option which pays $5000 annually is lesser than the amount receivable immediately, which is $25,000, hence, the first gig is preferred
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19.393x738.3803= 14319.409
Lucia saved 100 dollars and Ben saved 50 dollars
Answer: 88<8n
Step-by-step explanation:
Because 88 is the least amount of time, it goes on one side of the inequity and the 8n goes on the other
Answer: Jamar is correct
Step-by-step explanation:
Integer is a number that is a whole number and can either be positive or negative but it can't be a fraction or decimal. e.g 4, -2, 6, -23 etc.
A whole numbers are zero and other natural numbers such as 1, 4, 23. Negative numbers are not part of whole numbers.
From the statement made in the question, Sophia is wrong while Jamar is correct. The numbers aren't all whole numbers because some are negative.
