The present value of his consulting contract is $502,898.46.
Annual payment = $61,000
Opportunity cost = 8%
Number of payments = 14
Present value of payments = $61,000/1.08 + $61,000/ + ... + $61,000/ + $61,000/
Present value of payments = $61,000 * (1 - ) / 0.08
Present value of payments = $61,000 * 8.244237
Present value of payments = $502,898.46
Therefore, the Present value of payments is $502,898.46.
The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate. The higher the discount rate, the lower the present value of the annuity.
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Answer:
the amount of its stockholders' equity is $30,000
Explanation:
From The Accounting Equation, we know that :
Assets - Liability = Equity
Therefore,
Equity = $71,000 - $44,000
= $30,000
Answer: D. Increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Explanation:
M1 is the money which consist of coins and physical currency, travelers checks, demand deposits, etc. M1 is the most liquid part of money supply due to the fact that it is made up of the currencies and the assets that can be changed to cash quickly.
From the question, we are told that agricultural output is a large part of Econland's GDP and that a bad weather resulted in a shock to Econland's economy. The best way to address the situation is to increase M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
When money supply is increased, there will be more money in circulation which will bring about increase in demand and employers will employ more people due to this. It should also be noted that due to more money in circulation, there will be inflation which means rise in the prices of goods and services.
Therefore, the government has to choose between increasing M1 to reduce unemployment but adding to inflation, or decrease M1 to reduce the inflation while adding to unemployment.
Answer:
It is important to review your bank account statement as it contains crucial financial information that can be useful for reconciling your books. Additionally,it offer timely alerts on potentially fraudulent activities and can help you avoid some banking charges.
Explanation:
Regularly reviewing your bank statement can aid you in avoiding some banking fees such as:
1. Minimum balance charges.Some accounts require a minimum balance at any given time.Failure to maintain the minimum balance which vary from bank to bank will attract a fee.
2.Overdraft charges.An individual can incur overdraft charges when you spend more money than is actually available in your bank account.
3.Returned deposit charge.This is the fee that one incurs when for a bounced cheque.
I don’t even know that’s weird