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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

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Answer:

c) acceptable if the advertisement includes no preferential language

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Therefore the option c is correct

3 0
2 years ago
If lenders are seeking a 3% real interest rate, the inflation rate is expected to be 6%, and real GDP is growing at 4%, what nom
diamong [38]

Answer:

9%

Explanation:

Real interest rate is the difference between nominal interest rate and inflation rate (i.e. real interest rate = Nominal interest rate - rate of inflation).

Therefore, Nominal interest rate would be calculated by adding real interest rate of 3% to an inflation rate of 6%, which gives 9%.

While the nominal interest rate is the actual interest rate paid to investors, the real interest rate is what gets to to the investor's pocket in terms of purchasing power.

6 0
3 years ago
You bought four put options (each on 100 shares) on EZ stock with an exercise price of $35 per share and an option price of $1.3
Stella [2.4K]

Answer:

-$ 540

Explanation:

Put Option - provides right to sell share at exercise price on expiry.

As it is an Right not Obligation, Thus, buyer will exercise the right only if he is gaining at expiry and he will gain only if exercise price is higher than spot price at expiry

In this case Exercise Price ($ 35) is lower than the spot price ( $ 36.25) at expiry. Thus he will not execrise the option.

He will lose all what he spend in buying option that is $ 1.35 per share

Thus,

Net profit or loss on this investment = 4 Options * 100 Shares each * Loss of $ 1.35 per Share

Net profit or loss on this investment = 4 * 100 * (-1.35)

Net profit or loss on this investment = -$ 540

4 0
3 years ago
The seller has placed moving boxes in the closet that contains the access panel to the attic. during the buyer's home inspection
Sholpan [36]

Nothing. The inspector won't be able to investigate the attic during the inspection. The inspector is not required to move objects to access blocked areas. This is the responsibility of the seller prior to the inspection taking place

<h3>What does inspection serve to accomplish?</h3>
  • Inspection denotes a thorough analysis. Meeting consumer needs and preventing the distribution of substandard items are inspections' main goals. Unquestionably, some product flaws cannot be detected or corrected at the final stages of manufacture.
  • An inspection entails checking, or examining and evaluating, a subject. To make sure that it complies with certain requirements, we could inspect a structure or organization. The inspectors must guarantee that nothing is broken and that no one is in violation of the law.
  • Pre-production, in-line, and final quality inspections are the three main categories. To identify and address quality issues, a number of details must be examined and approved during each phase.

To learn more about inspection, refer to the following link:

brainly.com/question/10185359

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4 0
1 year ago
A check list should be based on past____?
Jet001 [13]
Is there any choices?
6 0
3 years ago
Read 2 more answers
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