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Travka [436]
2 years ago
9

Explain what is meant by the present value of an ordinary annuity. Choose the correct answer below. A. It is the value of any si

ngle annuity payment. B. It is the sum of the paid balance on an annuity at the specified point in time. C. It is the value of the sum of all the annuity payments before any interest is earned. D. It is the value of the unpaid balance on an annuity at the specified point in time.
Business
1 answer:
likoan [24]2 years ago
7 0

Answer:

<u>Letter D is correct.</u>  It is the value of the unpaid balance on an annuity at the specified point in time.

Explanation:

An ordinary annuity is the making of fixed payments over a fixed period of time. To specify the value of an annuity present in an ordinary annuity, one must know the established interest rates. When interest rates are higher, the present value of the ordinary annuity is reduced, and when interest rates are lower the present value is higher.

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One way to support the domestic marketing campaign is through industry participation. List three other pillars of this campaign.
Whitepunk [10]

Answer: strategic pillars: content, data, and execution

Explanation:

3 0
2 years ago
After nearly 20 years with his company, Mike's job was outsourced. He wants his new job to offer not only a good wage but also j
Sedbober [7]

Answer:

a. intrinsic rewards

Explanation:

Intrinsic rewards at the workplace are those that meet personal, internal needs. These intrisic rewards can be summed up in job satisfaction and sense of accomplishment, but what makes a job satisfying, and what makes a worker feel accomplished is subjective, and varies from person to person.

Mike is focusing on the intrinsic rewards of his new job because he is giving more importance to this subjective aspects explained above than to external factors such as status, or wage.

8 0
3 years ago
Dividends-R-Us, Corp. is paying a dividend of $3 a share today. It is expected that the company will continue its policy of incr
leonid [27]

Answer:

Amount for each stock to be paid at maximum = $54

Explanation:

Using Dividend growth model, we have,

P_0 = \frac{D_1}{K_e - g}

Where P_0 = Expected price of share today

D_1 = Dividend to be paid at this year end

= D_0 + g

K_e = Required return on investment

g = Growth rate

Therefore,

D_1 = = $3 + 8% = $3.24

P_0 = \frac{3.24}{0.14-0.08}

P_0 = $54

Therefore, current price for this share or sock to be paid = $54 per share.

5 0
2 years ago
Most businesses replace their computers every two to three years. Assume that a computer costs $2,000 and that it fully deprecia
sineoko [7]

Answer:

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Explanation:

let Z be the annual minimum cash flow

The internal rate of approach can be used here, in other words, the rate of return at which capital outlay of $2000 is equal present values of future cash flows

In year 1, present value of cash =X/discount factor

year 1 PV=Z/(1+i)^1

year 2 PV=Z/(1+i)^2

year 3=Z/(1+i)^3

Hence,

$2000=Z/(1+i)^1+Z/(1+i)^2+Z/(1+i)^3

Solving for Z above would give the minimum annual cash flow that must be generated for the computer to worth the purchase

Assuming i, interest rate on financing is 12%=0.12

Z can be computed thus:

$2000=Z(1/(1+0.12)^1+(1/(1+0.12)^2+(1+0.12)^3)

$2000=Z*3.09497902

Z=$2000/3.09497902

Z=$646.21

3 0
3 years ago
When everyone correctly anticipates that the Fed will buy government securities, then they know that prices will increase. Which
Veseljchak [2.6K]

Answer:

C. Producers will prevent the price level from increasing and hurting their sales.

Explanation:

When the FED buys securities from the public, the money supply increases and this raises the general price levels.

When general price level increases, workers would demand higher wages and the prices of goods and services would rise.

I hope my answer helps you

6 0
3 years ago
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