1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Savatey [412]
3 years ago
8

Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year. a. Wha

t is the value of the investment at the current interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What happens to the value of your investment if interest rates suddenly drop to 6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What happens to the value of your investment if interest rates suddenly rise to 16 percent?
Business
1 answer:
Dafna11 [192]3 years ago
3 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Suppose you just bought an annuity with 9 annual payments of $15,400 at the current interest rate of 11 percent per year.

First, we need to determine the final value with the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Then, we can calculate the present value with the following formula:

PV= FV/(1+i)^n

A)i=11%

FV= {15400*[(1.11^9)-1]}/0.11

FV= $218,125.17

PV= 218,125.17/(1.11^9)= $85,270.53

B) i= 6%

FV= {15400*[(1.06^9)-1]}/0.06

FV= $176,966.27

PV= 176,966.27/(1.06^9)= $104,746.06

C) i= 16%

FV= $269,785.02

PV= $70,940.77

You might be interested in
Fabian was planning to start his own publishing business. He met a few people who had set up their own publishing agencies and m
andrew-mc [135]
To avoid the mistakes they made
8 0
3 years ago
Read 2 more answers
On January 1, 2018, equity account balances are as follows: Preferred Stock $ 500,000 Common Stock 1,000,000 Paid-In Capital in
Ludmilka [50]

Answer:

a. debit to Paid-In Capital From Treasury Stock of $155,000

Explanation:

Treasury Stock purchase 25,000 shares = $762,500

Per share value = $762,500/25,000 shares

Per share value = $30.5

Selling price of 10,000 treasury stock = $15 × 10,000 = $150,000

Purchase price of 10,000 treasury stock = $30.5 × 10,000 = $305,000

The deference between sales and purchase of treasury stock = $155,000

Therefore, option A is the answer because paid-In Capital From Treasury Stock becomes a debit due to selling the stock in low price.

4 0
3 years ago
Capital sentences in economics using word defence, depreciation, capital intensive and advanced technology
AlexFokin [52]

Answer:

ICRICT ... these challenges are the difficulties with technology ... and regulations for financial capital flows.

6 0
2 years ago
​a psychologist gives the same test to a client twice. the tests are separated by six days. if the test results are quite dissim
Lena [83]

a) Internal consistency

Explanation:

The consistency of different items meant to measure the same thing within the test.  An internal consistency contains a special case of reliability to split half, the scores of two halves of a single test are compared. This comparison of two tests tends to index reliability.

3 0
3 years ago
Mention three barriers to interpersonal communication and how to overcome them
yawa3891 [41]

Explanation:

  1. Empathy,
  2. linguistic and
  3. cultural barriers.

Barriers to interpersonal communication can result from specific situations and personal differences that contribute to making the communication process more difficult.

However, it is possible to identify and overcome them. In the case of barriers of empathy, they can occur when there is no intention of understanding a certain situation that an individual is sharing with another individual, which may imply resistance in the listener that makes communication difficult , to overcome it, there must be greater understanding on both sides, greater respect and ethics on both sides.

In linguistic and cultural barriers it is necessary that individuals are willing to respect different values ​​and cultures, acting with ethics and respect. When there is a need to communicate with people of different nationalities, as in a multicultural work environment for example, language barriers must be minimized with the learning of a common language, such as English for example.

6 0
2 years ago
Other questions:
  • The following information is for Bright Eyes Auto Supplies: Bright Eyes Auto Supplies Balance Sheet December 31, 2015 Cash $ 40,
    6·1 answer
  • A product line is a particular version of a product that can be designated as a distinct offering on the organization's list of
    8·1 answer
  • The Federal Deposit Insurance Corporation (FDIC) insure account holder’s accounts for up to ___.
    15·1 answer
  • What must be done if a transaction increases the left side of the accounting equation?
    10·2 answers
  • Which of the following statements is correct? Multiple Choice A transaction that is properly recorded in the cash payments journ
    15·1 answer
  • Smashed Pumpkins Co. paid $88 in dividends and $526 in interest over the past year. The company increased retained earnings by $
    7·1 answer
  • ECON please answer will give brainleist
    11·1 answer
  • How did McDonald's use innovation and enterprise to help it's business growth?
    13·1 answer
  • 50 points + brainly
    5·1 answer
  • in some industries, technology drives globalization because the economies of scale necessary to reduce costs cannot be met by co
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!