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Ira Lisetskai [31]
3 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]3 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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Explanation:

in 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the abovein 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the above

an Evi score of 32 or belowin 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the abovein 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the abovein 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the abovein 40-euro cents.

d. The 60% of the rise in the

disposable income goes to

consumption

= All of the above

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