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Ira Lisetskai [31]
4 years ago
14

A financial company advertises on television that they will pay you $60,000 now in exchange for annual payments of $8,000 that y

ou are expected to receive for a legal settlement over the next 12 years. You estimate the time value of money at 10 percent. (a) Calculate the present value of the annual payments. Use Exhibit 1-D. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Business
1 answer:
vovangra [49]4 years ago
4 0

Answer:

PV $54,509.5346

Explanation:

We will calcualte the present value of an annuity of 8,000 for 12 years at 10% discount rate:

The formula of annuity is:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  8,000 dollars

time 12 years

rate        10% = 10/100 =  0.10

8000 \times \frac{1-(1+0.1)^{-12} }{0.1} = PV\\

PV $54,509.5346

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Q 5.7: Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company return
Ghella [55]

Answer:

Ans. The amount of the check is $784

Explanation:

Hi, from the initial balance of $1,000, we have to substract the returned merchandise, which was $200, therefore, Long Company owes Hale Company, $800 if Long Company pays within day 11th to 30th of the day of purchase. Since Long Company plans to pay within the first 10 days from the date of purchase, they would be granted a 2% discount on their remaining balance, therefore, the amount that Long Company has to write the check for is:

Check=Remaining Balance*(1-Discount)

It should look like this

Check=800*(1-0.02)=784

So, Long would have to write a check for $784, that is if it pays within the first 10 days from the date of purchase.

Best of luck.

8 0
3 years ago
Which of the following should be identified as pure goods? a. Abe has contracted a recycling company that collects his materials
mr_godi [17]

Answer:

b. Somaya just launched an online shoe company

d. A publishing company sells health-based curricula.

Explanation:

Pure goods are goods that are not associated with any services.

Pure services are services not associated with any physical goods.

I hope my answer helps you.

3 0
3 years ago
An examination of the reasons given by people willing to accept the risks of entrepreneurship indicates that: A)the desire to ea
Mariana [72]

Answer:

B)many people become entrepreneurs because they do not enjoy working for someone else.

Explanation:

The examination of the reasons provided by the people who wants to accept the entrepreneurship risk as here most of the people become entrepreneurs but at the same time they dont enjoy working for someone else as they wabt to work for themselves not for someone else

Therefore as per the given situation, the option b is correct

6 0
3 years ago
A community researcher wanted to explore the connection between the number of bathrooms in a house and the sale price of the hou
slava [35]

Answer:

A house's average sale price went up by $47,000 for each full bath.

Explanation:

A descriptive statistic describes the result of an study using quantitative terms. While a logical inferential statistic makes feasible predictions using the data described by the descriptive statistic.  

For example, a study showed that 70% of men prefer to go to work in the morning (descriptive statistic). The study showed that men are more likely to search for jobs in the morning shift (logical inferential statistic).

5 0
3 years ago
At the end of this section, the author provides links to self-assessments to help determine if an individual has what it takes t
LUCKY_DIMON [66]

Answer:

The correct answer is entrepreneurs are born, not made.

Explanation:

Entrepreneurs, social psychologists and economic theorists have speculated on whether entrepreneurs are born or made, in other words, if you are predisposed to become an entrepreneur because of your genetic constitution, or if that provision comes from your environment, conditioning or other external factor.

For most entrepreneurs, it is comforting to think that business men and women are made, that even if they lack the "right" DNA, practice, experience and sufficient conditioning to be a success.

6 0
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