All categories

3 years ago

If you put up $21,000 today in exchange for a 8.25 percent, 14-year annuity, what will the annual cash flow be

Business

1 answer:

BartSMP [9]3 years ago

8 0

Answer:

$2,584.34

Explanation:

we can use the present value of an ordinary formula to calculate this:

present value = annual payment x annuity factor

present value = $21,000
PV annuity factor, 8.25%, 14 periods = 8.12586

annual payment = present value / annuity factor = $21,000 / 8.12586 = $2,584.34

When the interest rates are not whole number, e.g. 4%, instead of trying to use a present value annuity table, you should look online for annuity calculators that will calculate the annuity factors for you.

You might be interested in

Do you think a luxury brand can ever be called good value? Explain your answer

zlopas [31]

I do believe luxurious brands are very picky with there titles

6 0

3 years ago

The Molding Department of Boswell Company has the following production data: beginning work process 40,000 units (60% complete),

Anna [14]

Answer: 770,000

Explanation:

Assuming materials are entered at the beginning of the process, the equivalent units materials will be:

Beginning work process = 40,000 units

Started into production = 730,000 units

Then equivalent units materials will be:

= 40000 + 730000

= 770000

5 0

3 years ago

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, an

Genrish500 [490]

Answer:

Option E Price Escalation

Explanation:

Price Escalation is when the government imposes additional taxes on the product which is exported to their country, this makes the product expensive and the customer as a result don't buys that product. Such type of increases in prices are known as price escalation.

7 0

3 years ago

Pharmaceutical Dispensary borrowed $ 630 comma 000 on January 2, 2018, by issuing a 15 % serial bond payable that must be paid

OLga [1]

$273 ,000 being the equal installments for all the three years

Explanation:

I year interest = $ 630,000 ×15÷100 = 94,500

$I year interest = $ 630,000 ×15÷100 = 94,500$

II year interest = $420,000×15÷100 = 63,000

$II year interest = $420,000×15÷100 = 63,000$

III year interest = $210 ,000×15÷100 = 31,500

$III year interest = $210 ,000×15÷100 = 31,500$

Total interest = 94,500+63,000+31,500 = 189.000

$Total interest = 94,500+63,000+31,500 = 189.000$

Installments payment with interest for each year is=

(630,000 + 189,000 = 819,000÷ 3 = 273,000)

$(630,000 + 189,000 = 819,000÷ 3 = 273,000)$

= $273 ,000 being the equal installments for all the three years

6 0

3 years ago

If consumers view the output of any firm in a market to be identical to the output of any other firm in the market, the demand c

Georgia [21]

Answer:

B. will be horizontal.

Explanation:

In the case when the firm is in the perfect competition market so here the demand curve would be horizontal as because of the same product and also the transaction cost is lesser that means if someone rise the prices so the producer would lost all its revenue

Therefore as per the given situation, the option b is correct

6 0

2 years ago