1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BigorU [14]
3 years ago
6

An ordinary annuity selling at $3,806.77 today promises to make equal payments at the end of each year for the next six years (N

). If the annuity’s appropriate interest rate (I) remains at 5.00% during this time, the annual annuity payment (PMT) will be .
Business
1 answer:
andrew-mc [135]3 years ago
5 0

Answer:

  • <em>The annual annuity payment (PMT) will be </em><u>$750.00</u>

Explanation:

The value of a <em>annuity payment</em>, A, is equal to the present value of the future payments.

When the interest rate,r, and the <em>annual annuity payment (PMT) </em>remain constant over the entire life of the annuity, the formula for the value of the annuity is:

      A=PMT\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^{t}}\bigg]

To caculate PMT substitute:

  • A = $3,806.77
  • r = 5.00% = 0.05
  • t = 6 years

      \$3,806.77=PMT\times \bigg[\dfrac{1}{0.05}-\dfrac{1}{0.05(1+0.05)^{6}}\bigg]

Compute and solve for PMT:

             \$3,806.77=PMT\times \bigg[20-14.9243079\bigg]\\\\\\PMT=\$3,806.77/5.07569207=\$750.00

You might be interested in
​Drive-Ins borrowed money by issuing $ 2 comma 500 comma 000 of 8 % bonds payable at 96.5. Interest is paid semiannually. Requir
Bogdan [553]

Answer:

I don't think he got any back

Explanation:

The money could have been a tip.

4 0
3 years ago
Touchtech earns revenue when edison purchases 100 shares, even if he purchases them from an existing shareholder.
Strike441 [17]

Answer:

A. An increase in the perceived profitability of Touchtech will likely cause the value of Edison's shares to rise.

B. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison's shares to decline

Explanation:

The price of the stock changes only because of the changes in the profitability of the firm. If the company is earning lower profits then the prices of the stock will fall and vice versa. So the option A is correct because increase in profitability increases the value of the shares.

So the main thing here is the profitability of the firm which is affected by the recession in the economy because during the recession period the profitability of the firm decreases and so the value of the stock decreases. So the option B is correct

6 0
3 years ago
Please answer the question posted in the image
GarryVolchara [31]

Answer:

its c

Explanation:

8 0
3 years ago
Between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs.
kondor19780726 [428]

Answer: True

Explanation:

Labor productivity has to do with the amount of products and services which are produce at a particular time by the workers.

It should be noted that between 1953 and 2015, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. This brought about increase in the available goods and services in the country.

3 0
3 years ago
Jacob is the owner of a film production company. He promotes a healthy work-life balance for his employees. He also encourages t
babymother [125]

Answer:

The country club style.

Explanation:

The country club style is a leadership style in which there is a high concern for people and low concern for the results which means that the manager is interested in his employees' needs and believes that they will work hard if they are in a good working environment. In terms of results, this tends to be a style in which the manager is relaxed and productivity can be low because there isn't a lot of control. According to this, the leadership style that Jacob is using in this scenario is the country club style because he believes that a healthy work environment is important and he doesn't do anything when his employees miss their deadlines.

6 0
3 years ago
Other questions:
  • In a flexible budget, when the activity declines, the total variable cost also declines.
    10·1 answer
  • A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
    13·1 answer
  • PLEASE HELP ME ASAP PLEASE!!!
    9·1 answer
  • Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 600,000 units are expecte
    15·1 answer
  • Dear Mr. Dunlap: Subject: Your Request for Invoicing Process Information I am happy to let you know that I can answer your quest
    7·1 answer
  • The ________________ desires to find a solution to a social problem rather than to simply earn profits.
    7·1 answer
  • Wolverine, Inc. began operations on January 1 of the current year with a $12,400 cash balance. 45% of sales are collected in the
    15·1 answer
  • The _____ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably
    10·1 answer
  • Which of the following is NOT considered a trend in marketing?
    9·1 answer
  • Tracing a test count to the inventory compilations provides evidence for which asb balance assertion?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!