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ser-zykov [4K]
4 years ago
3

(3) A perpetuity has annual payments. The first payment is for $320 and then payments increase by $30 each year until they becom

e level at $980. Find the value of this annuity at the time of the first payment using an annual effective interest of 4%.

Business
2 answers:
diamong [38]4 years ago
5 0

Answer and Explanation:

The answer is attached below

allochka39001 [22]4 years ago
4 0

Answer:

The value of the annuity $19,591.87

Explanation:

I have discounted all relevant cash flows to present value using the discounting factor 1/(1+r)^N where r is the rate of return of 4% and N is each relevant year that the amount received.

Find attached for details, note the formula used for terminal value at the end of the computation

Download xlsx
You might be interested in
You observe a quotation of the Japnese yen of $0.007. You are, however, interseted in the number of yen per dollar. Thus, you ca
Salsk061 [2.6K]

Answer:

C. indirect; 142.86

Explanation:

Simply put, quotation shows the trading relation between two currencies. There are two basic types of quotation:

- direct quotation represents the value of foreign currency compared to domestic one (in this case a dollar). So, direct quotation represents the value of foreign currency in dollars.

- indirect quotation, on the other hand, does the opposite; it compares domestic currency (a dollar) to a foreign one. Or, indirect quotation represents the number of units of foreign currency per dollar.

So, with this in mind, number of yen per dollar is indirect quotation and its value is calculated when we divide 1 with direct quotation, which is 1/0.007, which equals to 142.86

8 0
3 years ago
Five (5) grounds upon which the Registrar can lawfully refuse to register a partnership.
tiny-mole [99]

Answer:

Explanation:

The registrar can lawfully refuse o register a partnership under the listed conditions

1 . If its name is similar to any other existing partnership or business as the name of a business must be clearly unique

2.If its sole aim is perceived to be harmful or unpleasant, not in the public interest

3. It it has a name that the registrar has been directed by a higher authority not to approve

4. If the name is closely related to a partnership or a company that has been de-registered before

5. It the registrar believes on a reasonable ground the the partnership will be used to perpetrate criminal activities.

4 0
3 years ago
A movie studio has some costs it incurs even if it produces no movies at all in a given year. Think of these as the costs of hav
joja [24]

Explanation:

Part 1 : <u>True</u>, from the details provided about the movie studio total cost last year indicates after substractions of the differences in total

3rd movie cost - 2nd = 132-84 = 48 million

Therefore, the variable costs should greater than or equal to $47 million, but less than $255 million.

Part 2 :  <u>False</u>, the marginal cost of producing the first movie was $45 million. And there were three movies made by the firm.

Therefore, the firm's variable costs of producing all three movies last year would be

45 x 3 = 135 million

3 0
3 years ago
Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur
antiseptic1488 [7]

If Larry is too helpful to the buyer, the thing that might occur is an implied agency and undisclosed dual agency

<h3>Who is a Buyer?</h3>

This refers to the person that is interested in or makes a purchase of a certain product for a given price.

Hence, we can see that based on their assistance of Larry to a shopper that is making an offer on an available listing, it can be noted that this is an Implied agency and an undisclosed dual agency because he would make an offer on behalf of the company.

Read more about implied agency here:

brainly.com/question/15129864

#SPJ1

5 0
2 years ago
The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple
cricket20 [7]

Answer:

True

Explanation:

Overhead is the total of indirect cost that is involved in the production of a good. An overhead could be made up of a budgeted cost or actual cost. Overhead is appropriate when it does not exceed 35% of the total revenue.

Because a large company could produce different goods, those goods undergo different process and as result of that, require different costs of production.

For this reason, departmental overhead rates are calculated to ensure that every part of the company has its own production cost and expenses set aside rather than having a general or single company overhead rate which could favor some departments and not favor some other departments.

Cheers.

4 0
3 years ago
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