Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Cash flows from investing do not include cash flows from : Borrowing.
<h3><u>
Explanation:</u></h3>
The cash flows either inward or outward of any company refers to the Cash flow from investing activities. The long term usage of cash will be considered under this. The investing activities includes the following such as purchasing a fixed asset, selling a fixed asset. These assets includes any property, plants, equipment,etc.
The cash flows are associated with the generation or spending of amount in the investing activities. This is a section that is included in the cash flow statement of an organisation. Thus, the cash flows for investing activities will not include the cash flows from Borrowing.
Answer:
John has 7 dimes and 13 nickels
Explanation:
let N = nickels
let D = dimes
5N + 10D = 135
N = D + 6
5(D + 6) +10D = 135
5D + 30 + 10D = 135
15D = 135 - 30 = 105
D = 105 / 15 = 7
N = D + 6 = 7 + 6 = 13
The annual interest rate is 11.803%.
Assumptions:
- Interest is compounded annually.
Answer:
d. to allocate goods when there is a price ceiling.
Explanation:
Non price rationing or queuing is a measure used when there is a price ceiling, queuing is used to arrange people on a first come first serve basis.
Rationing is done on the non monetary cost of waiting in line.
Waiting time eventually balances buyer equillibrum. When customer's are waiting on queues for too long some of them loose interest and leave, this restoring balance between what is available and number of people waiting to buy.
