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
denis-greek [22]
3 years ago
14

A one-time gift to your college will provide $25,000 in scholarship funds next year with that amount increasing by 2 percent ann

ually thereafter. If the discount rate is 5.5 percent, what is the current value of this perpetual gift? a) $748,602.49 b) $726,849.29c) $714,285,71
Business
1 answer:
kherson [118]3 years ago
6 0

Answer:

c) $714,285.71

Explanation:

The computation of the current value of this perpetual gift is shown below:

= (Scholarship fund provided next year) ÷ (discount rate - growth rate)

= ($25,000) ÷ (5.5% - 2%)

= ($25,000) ÷ (3.5%)

= $714,285.71

In order to find out the current value, we considered all the given information that are mentioned in the question

You might be interested in
A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $30, $38, and $90. The nu
galina1969 [7]

Answer:

The one-day rate of return on the index is 3.43%

Explanation:

Given that the shares were priced at;

$30    for    710,000 shares

$38    for    610,000 shares

$90    for    310,000 shares

Changes in prices of shares

$34-$30=4

$36-$38= -2

$92-$90=2

Return=change in price of shares/initial price of shares *100

The return will be;

4/30*100 =13.33

-2/38*100= -5.26

2/90*100 = 2.22

Total = 13.33+2.22 - 5.26 =10.29

10.29/3 =3.43

3 0
3 years ago
What was the opportunity cost in a situation in which you use your available cash to buy gas for your car and then stay hungry t
Elodia [21]

Answer:

see below

Explanation:

Opportunity cost is the sacrificed benefit by choosing a preferred option over others. The value of opportunity cost is the foregone benefit from the best alternative.

In this situation, the person had to choose between buying gas for the car or using that money to purchase food. Since the person opted to buy gas, they sacrificed having a meal for the rest of the day.  The pleasure derived from eating is the opportunity cost for this person.  

4 0
2 years ago
Third national bank has reserves of $20,000 and checkable deposits of $200,000. the reserve ratio is 10 percent. households depo
irga5000 [103]
Reserves - $20,000
Checkable Deposits - $200,000
Reserves Ratio - 10
Household Deposit - $15,000
Level of Excess Reserves - ?

Solution:
Checkable Deposits = $200,000 + $15,000 = $215,000
Required Reserves = 0.10 x $215,000 = $21,500
Excess Reserves = Actual Reserves - Required Reserves
= $35,000 - $21,500 = $13,500
6 0
3 years ago
The setup time for a batch of 250 products is 30 minutes while the production time is 5 minutes for each product. If the batch s
kramer

Answer:

d. Decrease by 0.045 minutes

Explanation:

<u>First Case</u>  

Time per unit for 250 batch size = (30 / 250) + 5 minutes

Time per unit for 250 batch size = 5.12 minutes

<u>Second case</u>

Time per unit for 250 batch size = (30 / 400) + 5 minutes

Time per unit for 250 batch size = 5.075 minutes

The decrease in manufacturing time = Old-time - New time  = 5.12 - 5.075  =  0.045 minutes . So, it Decrease by 0.045 minutes

7 0
3 years ago
If a positive externality in consumption is present in a market, then
larisa [96]
Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.
8 0
2 years ago
Other questions:
  • Tyler and Camille both live in Oklahoma. A new-car dealer in Oklahoma bought a new car from the manufacturer for $17,000 and sol
    10·1 answer
  • Joy, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial
    9·1 answer
  • Suppose you own a successful bicycle repair business. why would you consider incorporating?
    13·1 answer
  • According to ogburn's theory, invention can include both material and non-material social creations. non-material inventions inc
    6·1 answer
  • Sunland Company sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no begi
    11·1 answer
  • Bennie’s Radiator Shop has installed a new machine that increases production by 200 units. Each unit sells for $30. What is the
    6·1 answer
  • Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto
    15·1 answer
  • A single commercial bank must meet a 25% reserve requirement. If it initially has no excess reserves and then $2,000 in cash is
    15·1 answer
  • According to the PPC, as we produce more military goods and our resources remain constant, what will happen to the production of
    8·1 answer
  • The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareho
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!