Answer:
PV = $9,245.56
Explanation:
Giving the following information:
Future value (FV)= $10,000
Number of periods (n)= 2 years
Discount rate (i)= 4% = 0.04
<u>To calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV = FV / (1 + i)^n
PV = 10,000 / (1.04^2)
PV = $9,245.56
 
        
             
        
        
        
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Answer:
It would be A Raina is correct because the loan is a line of credit.
Explanation:
Hope this helps!
 
        
                    
             
        
        
        
Answer:
a-1) Pv = 52549
a-2) Pv = 56822
b-1) Fv = 77570
b-2 Fv = 83878
Explanation:
b-1) Future value:
S= Sum of amount of annuity=?
n=number of fixed periods=5 years
R=Fixed regular payments=13200
i=Compound interest rate= .081 (suppose annualy)
we know that ordinary  annuity:
 S= R [(1+i)∧n-1)]/i
    = 13200[(1+.081)∧5-1]/.081
     =13200(1.476-1)/.081
     = 13200 * 5.8765
   S  = 77570
a.1)Present value of ordinary annuity:
Formula: Present value = C* [(1-(1+i)∧-n)]/i
                                   =13200 * [(1-(1+.081)∧-5]/.081
                                  =13200 * (1-.6774)/.081
                                 =13200 * (.3225/.081)
                                 =52549
a.2)Present value of ordinary Due:
Formula : Present value = C * [(1-(1+i)∧-n)]/i   *  (1+i)
                                     =  13200 * [(1- (1+.081)∧-5)/.081   * (1+.081)
                                  = 13200  * 3.9822 *  1.081
                                =  56822
b-2) Future value=?
we know that:         S= R [(1+i)∧n+1)-1]/i ]  -R
                              = 13200[ [ (1+.081)∧  5+1 ]-1/.081]   - 13200
                            = 13200 (.5957/.081)   -13200
                          = (13200 * 7.3544)-13200
                          = 97078  -  13200
                        =  83878
 
        
             
        
        
        
Answer:
True
Explanation:
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