Answer:
The present value of the contract is 0.5% higher if the rent is paid at the beginning of the month. That is equal to $11.28 for every $100 of rent.
Explanation:
if the rent is paid at the beginning of the month, the present value of the lease contract will be:
PV = monthly rent x PV annuity due factor
we are not given the monthly rent, but we know the PV annuity due factor for 0.5% and 24 periods = 22.67568
if the rent is paid at the end of the month, the PV = monthly rent x PV ordinary annuity factor
the PV ordinary annuity factor, 0.5%, 24 periods = 22.56287
assuming that the rent is $100 (just to calculate a %), the PV of an annuity due = $2,267.57
the PV of an ordinary annuity = $2,256.29
the difference between them = [($2,267.57 / $2,256.29) - 1] x 100 = 0.5%
A decline in interest rates is expected to put the economy in recession. This is because with less interest comes less money earned and less spending as a result.
Answer:
relating the topic to the audience
Explanation:
Based on the scenario being described within the question it can be said that to gain attention and interest Paul related the topic to the audience. Paul did this by comparing Lou Gehrig to the audiences daily lives at school. By doing this it is catching the audiences attention which in term causes them to be interested in the rest of the speech that Paul is giving.
The STEEPLE model is a very complete model that can be used to analyze the factors that affect a specific situation.
<h3>What is the STEEPLE model?</h3>
This is an analysis model in which each letter represents a factor to be analyzed:
- Social
- Technology
- Economic
- Environmental
- Political
- Legal
- Ethical
<h3>What is an example of this model?</h3>
Let's analyze a war between two countries:
- Social: The families are negatively affected by the war.
- Technology: Weapons and other technologies are used as part of the war.
- Economic: The economy of the countries involved and other nearby countries can be negatively or positively affected.
- Environmental: There is pollution due to waste derived from weapons.
- Political: Most wars are the result of political conflicts.
- Legal: There are specific international rules that regulate wars.
- Ethical: The use of weapons against a population rises ethical concerns and dilemmas.
Learn more about analysis in: brainly.com/question/5040600
Answer:
Price of stock = $49.5
Explanation:
<em>The Dividend Valuation Model(DVM) is a technique used to value the worth of an asset. According to this model, the value of an asset is the sum of the present values of the future cash flows would that arise from the asset discounted at the required rate of return. </em>
If dividend is expected to grow at a given rate , the value of a share is calculated using the formula below:
Price of stock=Do (1+g)/(k-g)
Do - dividend in the following year, K- requited rate of return , g- growth rate
DATA:
D0- 2.7
g- 10%
K- 16%
Price of stock = ( 2.7×1.1)/(0.16-0.1) = 49.5
Price of stock = $49.5
