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serious [3.7K]
3 years ago
12

g What’s the interest rate of a 5-year, annual $4,900 annuity with present value of $20,000? (Use a time value of money calculat

or or a spreadsheet. Round your answer to 2 decimal places.)
Business
1 answer:
juin [17]3 years ago
4 0

Answer:

Interest rate of annuity is 7.17%

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

$20,000 = $4,900 x [ ( 1- ( 1+ r )^-5 ) / r ]  

r = 7.17%

Interest rate is 7.17%

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Hunter's Hut is considering a project that will require additional inventory of $48,000 and will increase accounts payable by $2
slamgirl [31]

Answer:

the project cash flow is $92,880

Explanation:

The computation of the project cash flow for the change in net working capital in the year 1 is shown below:

Working capital needed for the year 1 $55,000 ($550,000 × 10%)

Add: Additional inventory $48,000

Add: Increase in account receivable $11,880 ($297,000 × 4%)

Less: Increase in accounts payable $22,000

Project cash flow $92,880

Hence, the project cash flow is $92,880

3 0
3 years ago
Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6. 25%. Vanessa’s monthly payments are $1,5
Brilliant_brown [7]

Explanation:

A hoped this helped if not srry

4 0
3 years ago
Which level of maintenance involves preventive and corrective procedures which are intended to restore equipment to a mission-ca
ivolga24 [154]
<span>The level of maintenance that involves preventive and corrective procedures which are intended to restore equipment to a mission-capable status is the D - level maintenance. The FRC is a place whereby these kind of maintenance is being held. They are the ones who ensure that the transportation vehicle is still capable to operate such as checking their operation systems, maintenance, improvement and sampling.
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4 0
4 years ago
Consider this​ statement: "Persistent inflation in a growing economy is possible only if the aggregate demand curve shifts right
horrorfan [7]

Answer:

This statement is describing demand pull inflation.

Explanation:

If the aggregate demand increases the demand curve will shift rightwards. But if the increase in demand is higher than increase in supply this will lead to an increase in the price level. The output level will increase but constant increase in price will cause inflationary pressures. This is referred toa as demand-side inflation.

4 0
3 years ago
You have found an asset with a 13.60 percent arithmetic average return and a 10.44 percent geometric return. Your observation pe
Dennis_Churaev [7]

Answer:

Return on assets  =  10.87 %

Return on assets  =  11.42%

Return on assets  =  12.51 %

Explanation:

given data

arithmetic average return = 13.60 percent = 0.1360

geometric return = 10.44 percent = 0.1044

observation period N = 30 years

solution

we will use here Blume formula for return of the asset  for 5 , 10 and 20 year

Return on assets = Arithmetic average return × (N - T) ÷ (N - 1) + Geometric average × (T - 1) ÷ (N - 1)   ....................1

here N is observation period and t is time period i.e 5, 10 and 20

put here value for all 3 we get

Return on assets = \frac{5-1}{30-1}*0.1360 +\frac{30-5}{30-1}*0.1044  

Return on assets  = 0.108759 = 10.87 %

and

Return on assets  = \frac{10-1}{30-1}*0.1360 +\frac{30-10}{30-1}*0.1044

Return on assets  = 0.114207 = 11.42%

and

Return on assets  =  \frac{20-1}{30-1}*0.1360 +\frac{30-20}{30-1}*0.1044

Return on assets  = 0.125103 = 12.51 %

3 0
3 years ago
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