Answer:
Instructions are listed below
Explanation:
Giving the following information:
Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year.
First, we need to determine the final value with the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Then, we can calculate the present value with the following formula:
PV= FV/(1+i)^n
A)i=11%
FV= {15400*[(1.11^9)-1]}/0.11
FV= $218,125.17
PV= 218,125.17/(1.11^9)= $85,270.53
B) i= 6%
FV= {15400*[(1.06^9)-1]}/0.06
FV= $176,966.27
PV= 176,966.27/(1.06^9)= $104,746.06
C) i= 16%
FV= $269,785.02
PV= $70,940.77
Answer:
C
Explanation:
its C because if the price goes down for a product then you buy more of something you wanted to get more out of.
Answer:
A, B.
Explanation:
A is relevant as the 400-pound remaining can be sold at market price after the special order
B is relevant as the whole 5,500 can be sold at market price instead of the special order
C is irrelevant as the cost has already been uncured
D is irrelevant
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