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Colt1911 [192]
3 years ago
6

39. You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%?

Business
1 answer:
ivann1987 [24]3 years ago
6 0

Answer:

PV= $1,311.17

Explanation:

Giving the following information:

Future Value (FV)= $5,000

Number of periods (n)= 25 years

Interest rate (i)= 5.5% compounded annually

T<u>o calculate the present value (PV), we need to use the following formula:</u>

<u></u>

PV= FV / (1+i)^n

PV= 5,000 / 1.055^25

PV= $1,311.17

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Answer:

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Please check the attached image for a graph showing these shifts

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3 years ago
Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $15 per basketball and
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I think the answer is <span>unit-elastic over this price range.  This happens  when a company earns the same revenue even with some slight changes on the prices. It means that slight increase or even decrease in price does not affect the revenue of the company.</span>
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A Nasdaq-listed stock currently shows an inside market of 15.50 - 15.75, 10 x 10. A broker-dealer that is not a market maker in
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