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-BARSIC- [3]
3 years ago
10

5 find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. also ca

lculate the present value if the $7,000 is received after two years.
Business
1 answer:
Aloiza [94]3 years ago
3 0
One year

7000×1.03^1 = $7210.00

two year

7000×1.03^2 = $7426.30
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You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin
Brums [2.3K]

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

FV=PV(1+i)^n

The present value will become:

PV=FV(1+i)^{-n}

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}

Divide above equation by (1+i)^{-1}

6000(1+i)+5940=12000(1+i)^{1/2}

Let z=(1+i)^{1/2}\\. Above equation will become:

6000z^2+5940=12000z

Rearranging above equation:

5940-12000z+6000z^2=0

Solving the quadratic equation:

z=1.1,    z=0.9

Let z=(1+i)^{1/2}\\ will become:

z=(1+i)^{1/2}\\\\z^2=1+i

i=z^2-1

For z=1.1

i=(1.1)^2-1\\i=0.21

For z=0.9

i=(0.9)^2-1\\i=-0.19

we will consider positive interest rate which is i=0.21 or i=21%

7 0
3 years ago
In order for mutually beneficial trade to occur between two otherwise isolated nations, Multiple Choice each nation must face co
serg [7]

In order for mutually beneficial trade to occur between two otherwise isolated nations, each nation must be able to produce at least one good relatively cheaper than the other.

<h3>What does comparative advantage mean?</h3>

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. A country should specialise in the production of goods for which it has a comparative advantage. This is when trade can be mutually beneficial .

To learn more about comparative advantage, please check: brainly.com/question/25812820

6 0
2 years ago
Returning workers confront creepy time capsules of pre-pandemic life
UkoKoshka [18]

The main idea of this article is to expose the space that workers found when returning to their workplaces after isolation from the pandemic.

The article talks about the workplaces that had particular aspects after having been alone for 18 months of isolation due to the pandemic. For example:

  • There was spoiled food that was left there 18 months ago.
  • Calendars for the first months of the year 2020.

This situation originated because the workers carried out their daily work routine and did not contemplate being forced to isolate themselves for prevention to acquire the virus of the pandemic of the year 2020.

This question is incomplete because the question is missing. The question is:

What is the main idea of the article?

Learn more in: brainly.com/question/2655465

4 0
3 years ago
A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real w
elena-14-01-66 [18.8K]

Answer: Both will raise the same amount

Explanation:

The government here is certain that it can achieve the same quantity and price regardless of if it uses a pollution tax or pollution allowance. This means that it would be charging the companies the same regardless of the method used.

Both methods would therefore yield the same amount if the government uses either of them.

3 0
2 years ago
Elizabeth recently purchased 115 shares of a company for $10350 ($90 per share). The company has been doing well. This year, she
Fed [463]

Answer:

$90

Explanation:

Option B is wrong because $1,035 is the dividend received from the company by Elizabeth.

Option C is wrong because $270 is the current market price of each share.

Option D is incorrect because $10,350 is the common stock value of 115 shares.

Option A is correct because $90 is Elizabeth's per-share basis in the company for which she received a dividend. Share's price increased to $270 after success.

7 0
3 years ago
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