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denis-greek [22]
4 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]4 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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y - y₁ = m(x - x₁)

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The equation of the line is y = 2/3x + 1.

4 0
4 years ago
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Answer:

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Explanation:

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5 0
4 years ago
Read 2 more answers
2. Why might this be the perfect advice for beginning investors?
soldi70 [24.7K]

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8 0
3 years ago
Raphael lives in San Diego and runs a business that sells guitars. In an average year, he receives $722,000 from selling guitars
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Answer:

Statement 1: Explicit cost

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4 0
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