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
Tcecarenko [31]
3 years ago
14

A three-year annuity-immediate will be issued a year from now with annual payments of 5,000. Using the forward rates, calculate

the present value of this annuity a year from now.
Business
1 answer:
vladimir1956 [14]3 years ago
6 0

Answer:

13,152.5

Explanation:

Given the the above parameters as mentioned in the question

To calculate the PV (Present Value)

We have PV = 5000 * 1.05 * [ 1/(1.0575)² + 1/(0.625)³ + 1/(1.065)⁴]

PV = 5000 * 1.05 * (0.8942094350 + 0.8337064929 + 0.7773230908) =

=> PV = 5000 * 1.05 * 2.5052390187

= 13,152.50

Therefore, in this case, using the forward rates, the present value of this annuity a year from now is 13,152.50

You might be interested in
Which method is faster easier and more convenient way of job searching than looking at newspapers
NNADVOKAT [17]
You can try search online job search websites , through networking with people or simply just call the place that you want to work and ask for any vacancies.

:)

3 0
3 years ago
Read 2 more answers
A decline in interest rates is expected to __________.
bulgar [2K]

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.

8 0
3 years ago
Read 2 more answers
Ryan is working in a database that organizes vendor contact information. Ryan must find vendors located in two cities. The vendo
krek1111 [17]

Answer:

AND

Explanation:

AND condition is used when we need to check for the condition in which both the given conditions are satisfied.

Here from the statements provided in the question, it can be observed that the vendor must have offices in both the cities  i.e the condition should be followed that the vendor has the office in one city AND the other city.

3 0
3 years ago
Once a business owner proves that a franchise is successful, his or her franchise will automatically be renewed True or False?
Usimov [2.4K]
The answer is False:)
5 0
2 years ago
Read 2 more answers
In "thinking like an economist," the section "the role of economic theory" states that many economists believe that useful insig
rusak2 [61]

In "thinking like an economist," the section "the role of economic theory" states that many economists believe that useful insights into our behavior can be gained by assuming that we act as if governed by the rules of rational decision-making.

It is possible to define rational decision-making as a decision-making process that incorporates reasoning at every stage. It is founded on the use of impartial knowledge. The first step in making a reasonable decision is to identify the issue that needs to be resolved, followed by the collection of all relevant data.

The next step is to examine every outcome that might result from each potential solution. The decision-making process that follows comprises weighing all viable options and selecting the best one based on reasoning.

Rational decision-making examples include:

● A student chooses what to study in his post-secondary education.

● A commercial choice regarding what to buy for the company.

To know more about decision-making refer to:

brainly.com/question/1249089

#SPJ4

7 0
11 months ago
Other questions:
  • Tishian's funeral home has been in business for over 80 years. throughout its history, the firm has been a family-run operation.
    8·1 answer
  • According to Jamie Dimon, "Most leaders I know are working to build something of which they can be proud. They usually work hard
    7·1 answer
  • Monthly payments are higher with a 15 year , fixed rate mortgage. What are two advantages of a 15 year fixed rate mortgage over
    13·1 answer
  • Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity d
    5·1 answer
  • Which competency area of the human service professional is defined as follows: "The community human service practitioner is know
    9·1 answer
  • The Blending Department of Luongo Company has the following cost and production data for the month of April.
    10·1 answer
  • Defining the research problem and research objectives is often regarded as the most difficult step in the marketing research pro
    6·1 answer
  • Mirrlees Corp. has 11,000,000 bonds convertible into 39 shares per $1,000 bond. Mirrlees has 570,000 outstanding shares. Mirrlee
    13·1 answer
  • Define fannie mae and freddie mac.​
    15·1 answer
  • ​a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage thro
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!