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guajiro [1.7K]
3 years ago
8

Calculate the present value of an annuity immediate with 20 annual payments of 500 if the first payment of the annuity immediate

starts at the end of the fifth year. The annual effective interest rate is 8%.
Business
1 answer:
Yanka [14]3 years ago
8 0

Answer:

500 x 6.6818 = $3,340.9

Explanation:

Calculate the present value of an annuity immediate with 20 annual payments of 500 if the first payment of the annuity immediate starts at the end of the fifth year. The annual effective interest rate is 8%.

PV of an Annuity = C x [ (1 – (1+i)-n) / i ]

But since the annuity immediate is starting at year 5 to year 25, we compute annuity at year 25 and less annuity at year 5 - to get the 20 years in between.

500 x [(1 - (1+0.08)^ - 25)/0.08] - 500 x [1-(1+0.08^-5)/0.08]

500 x (10.6748 - 3.993)

500 x 6.6818 = $3,340.9

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attashe74 [19]

Answer:

d. buyers will make purchases from other sellers

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In the perfect competition structure producers have no power to change prices, as goods are homogeneous. Thus, since products are the same, if the producer raises the price, consumers will consume with other sellers.

3 0
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calculus a hotel that charges 80 oer day for a room gives secial rates to organizations that reserve bewteen 30 adn 60 rooms
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6 0
1 year ago
In calculating earnings per share, companies deduct preferred dividends from net income if:
Savatey [412]

Answer: Option B

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7 0
3 years ago
Anne LLC purchased computer equipment (five-year property) on August 29 for $30,000 and used the half-year convention to depreci
notsponge [240]

Answer:

$1,728

Explanation:

To reach maximum depreciation expense we simply first compute the depreciation which is shown below:-

Depreciation = Purchased computer × Depreciation Rate

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6 0
3 years ago
Equilibrium levels of income and interest rates are ______ related in the goods and services market, and equilibrium levels of i
dsp73

Answer:

The correct answer is option D.

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The income and interest rates are inversely or negatively related in the goods market.

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In the money market though equilibrium levels of income and interest rate are positively related.

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In this way, income and interest rate arepositively related in the money market.

7 0
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