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
Jlenok [28]
3 years ago
9

Cameron is going to receive an annuity for 44 years of $27,833, and Kennedy is going to receive a perpetuity of that same amount

. If the appropriate discount rate is 6%, how much more are Kennedy's cash flows worth today than Cameron's cash flows? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Business
1 answer:
Svet_ta [14]3 years ago
8 0

Answer: $36,173.622

Explanation:

Cameron:

Annual Payment  = $27,833

Time Period(n) = 44 years

Discount Rate(r) = 6%

Present\ Worth=Annual\ Payment\times[\frac{(1-(\frac{1}{1+r})^{n} }{r}]

Present\ Worth=27,833\times[\frac{(1-(\frac{1}{1.06})^{44} }{0.06}]

= 27,833\times\frac{1-0.078}{0.06}

=27,833\times15.367

= $427,709.711

Kennedy:

Annual Payment = $27,833

Discount Rate = 6%

Present Worth = \frac{27,833}{0.06}

Present Worth = $463,883.333

So, Present Worth of Kennedy is $36,173.622 more than that of Cameron.

You might be interested in
According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the?
Semmy [17]

According to interdependency theory, the net profit or loss a person encounters in a particular interaction is known as the outcomes.

According to the social exchange theory known as interdependence, interpersonal interdependence—which is defined as "the process through which interacting people impact one another's experiences"—defines interpersonal relationships.

The consequences of this structure for human psychology are discussed in the interdependence theory along with the structural characteristics that define relationships. The interdependence theory views the relationships between people as being as important as the individuals themselves, in contrast to most psychological theories that place a strong emphasis on the individual, contending that people's distinct experiences, cognitions, or personalities are to blame for how they behave.

This makes the theory a truly social psychological one and provides a much-needed explanation of the nature and consequences of interdependence.

To learn more about interdependence here,

brainly.com/question/3639547

#SPJ4

4 0
2 years ago
On December 31 of the current year, Aztec Company understated ending Merchandise Inventory by $10,000. How does this error affec
daser333 [38]

Answer:

Cost of goods sold will be overstated by $10,000

Net income will be understated by $10,000

Explanation:

The movements in inventory account can be shown as

Opening balance + purchases - cost of goods sold = ending balance

As such, understating the ending balance would result in an overstatement of cost of goods sold. This will in turn result in an understatement of gross and net income.

3 0
3 years ago
Discuss why South Africa as a country has a scarcity of skilled workers, and how this can be changed more especially in terms of
FromTheMoon [43]

South Africa, as a country still experiences a scarcity of skilled workers.  This should not be, given the country's population size.

<h3>What is the scarcity of skilled workers?</h3>

The scarcity of skilled workers means that South African companies cannot attract the manpower they need to power the South African industry and economy.

However, this scarcity can become a thing of the past if many more South African companies can start investing in the education sector by giving out scholarships, grants, and endowing academic chairs in the universities.

This was how the economy of the United States was enabled to flourish until today.  South African companies can emulate their footsteps.

Thus, South Africa, given its enormous population, has no business experiencing a scarcity of skilled workers.

Learn more about the scarcity of skilled workers at brainly.com/question/1787954

5 0
2 years ago
In a small, closed economy, national income (GDP) is $ 500.00 million for the current month. Individuals have spent $ 300.00 mil
alexdok [17]

Answer:

The total investment in the economy is $50 million

Explanation:

The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports)

Using this formula we can determine the amount of investment.

Investment = 500 (GDP) - 300 (private consumption) - 150 (government spending) = $50.

4 0
3 years ago
Johnson Electronics makes calculators. Consumer satisfaction is one of the top priorities of the company's management. The compa
dimulka [17.4K]

Answer:

the probability that exactly 30 of the 500 calculators IS 0.0495

Explanation:

Given data:

number of calculators n = 500,

percentage of defected calculators p = 0.05

From Normal approximation method;

&#10;X~Normal mean = 500\times 0.05 = 25,

s = \sqrt{n\times p\times (1-p)}

   = \sqrt{(500\times 0.05\times 0.95)} = 4.87&#10;

Therefore probability is

P(X= 30) = P(29.5< X< 30.5) ( from continuous correction)

&#10;=P[\frac{(29.5-25)}{4.87}] < \frac{(X-mean)}{s} < \frac{(30.5-25)}{4.87}&#10;&#10;=P(0.92

=0.0495 (from standard table of Z )

4 0
3 years ago
Other questions:
  • DonCo, Inc. sold merchandise on January 14, and accepted a 90-day, 5% promissory note in the amount of $5,000. On January 14, th
    9·2 answers
  • Tiffany owns a health club and contracts to buy a set of weights from Dylan for $10,000. Dylan is hurting financially, so he cha
    12·2 answers
  • An offer is made on a property listed with broker Green for $93,000. The offer is for $91,000 and the buyer will be obtaining FH
    7·1 answer
  • You are a Group Supervisor working in a Branch within the Operations Section. Who is your immediate supervisor?
    7·1 answer
  • When marietta chooses to only purchase a combination of goods that lie within her budget line, she: is decreasing utility. is ma
    5·1 answer
  • The largest sector in core economies is the tertiary sector; activities in this sector include __________________
    8·1 answer
  • Why is a double entry accounting system so called?
    10·1 answer
  • What if Clapton Company in Example 9-1Preview the document changed their desired ending inventory level to equal 20.5% of next q
    9·1 answer
  • Which of the following events would be likely to increaseincrease the supply of​ money?
    10·1 answer
  • The true economic yield produced by an asset is summarized by the asset's:____.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!