All categories

3 years ago

Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8.1 percent.

Business

1 answer:

sertanlavr [38]3 years ago

5 0

Answer:

a-1) Pv = 52549

a-2) Pv = 56822

b-1) Fv = 77570

b-2 Fv = 83878

Explanation:

b-1) Future value:

S= Sum of amount of annuity=?

n=number of fixed periods=5 years

R=Fixed regular payments=13200

i=Compound interest rate= .081 (suppose annualy)

we know that ordinary annuity:

S= R [(1+i)∧n-1)]/i

= 13200[(1+.081)∧5-1]/.081

=13200(1.476-1)/.081

= 13200 * 5.8765

S = 77570

a.1)Present value of ordinary annuity:

Formula: Present value = C* [(1-(1+i)∧-n)]/i

=13200 * [(1-(1+.081)∧-5]/.081

=13200 * (1-.6774)/.081

=13200 * (.3225/.081)

=52549

a.2)Present value of ordinary Due:

Formula : Present value = C * [(1-(1+i)∧-n)]/i * (1+i)

= 13200 * [(1- (1+.081)∧-5)/.081 * (1+.081)

= 13200 * 3.9822 * 1.081

= 56822

b-2) Future value=?

we know that: S= R [(1+i)∧n+1)-1]/i ] -R

= 13200[ [ (1+.081)∧ 5+1 ]-1/.081] - 13200

= 13200 (.5957/.081) -13200

= (13200 * 7.3544)-13200

= 97078 - 13200

= 83878

You might be interested in

7. Farmer sells flour to a baker for RM2. The baker uses the flour to make bread, which is sold for RM3. What is the total contr

erica [24]

Answer: RM3

Explanation:

Gross domestic product has to do with the monetary value of the goods that are produced in a particular economy. In this case, the total contribution will be RM3 since it's the final amount that the bread is sold.

It should be noted that RM2 in this case is the intermediate good and should therefore bit be included so that there won't be an overstatement of the GDP and to prevent double counting.

8 0

3 years ago

Suppose you hit a 0.058-kgkg tennis ball so that the ball then moves with an acceleration of 10 m/s2m/s2. If you were to hit a b

daser333 [38]

Answer:

1 m/s2

Explanation:

The force on a body ( which is a pull or push) is given by the formula

F = Ma

where F is the force, a is the acceleration and M the mass of the body

Therefore, given that the same force is applied to both bodies,

0.058 × 10 = 0.58 × a

a = 0.058 × 10/0.58

a = 1 m/s2

The acceleration of the basketball will be 1 m/s2.

8 0

3 years ago

Is so sophisticated that even core functions such as engineering, research and development, manufacturing, information technolog

11111nata11111 [884]

Outsourcing is so sophisticated that even core functions such as engineering, research and development, manufacturing, information technology, and marketing can be moved outside the firm.

The practice of employing a third party from outside a business to carry out tasks or produce commodities that were previously completed in-house by the business's own employees and personnel is known as outsourcing. Companies typically engage in outsourcing as a cost-cutting strategy.

The outside business, often referred to as the network operator or third-party provider, makes arrangements for its own personnel or technological resources to carry out the duties or offer the services either on-site at the premises of the hiring business or at other places.

To learn more about outsourcing click here:

brainly.com/question/14202035

#SPJ4

5 0

1 year ago

Performance, polygraph, or drug test are?

Mumz [18]

The correct answer is choice C.

Performance, polygraph and drug tests are sometimes required by employers in various fields in order to screen applicants.

6 0

3 years ago

Simmons, Inc. uses the lower-of-cost-or-market method to value its inventory that is accounted for using the LIFO method. Data

MA_775_DIABLO [31]

Answer:

The lower- of- market- or cost for the item is $21

Explanation:

In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.

The ceiling is computed as:

Ceiling = Selling price - Completion cost

where

selling price is $30

Completion cost is $2

Putting the values above:

Ceiling = $30 - $2

Ceiling = $28

Computing the floor as:

Floor = Ceiling - Normal profit margin

Floor = $28 - $7

Floor = $21

As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.

6 0

3 years ago