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Bingel [31]
3 years ago
6

What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5%? a. $16,576 b. $19,334

c. $18,367 d. $17,449 e. $20,352
Business
1 answer:
jeyben [28]3 years ago
4 0

Answer:

The correct answer is E.

Explanation:

Giving the following information:

Ordinary annuity with 10 payments of $2,700. The interest rate is 5.5%.

First, we need to calculate the final value using the following formula:

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

A= annual pay

FV= {2,700*[(1.055^10)-1]}/0.055= $34,763.45

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 34,763.45/(1.055^10)= 20,352

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peggy practices her gymnastics routine for a total of 21 hours.Each practice session is 1 and 3 4 hours.how many practices sessi
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3 years ago
A manager should attempt to maximize the value of the firm by changing the capital structure if and only if the value of the fir
faust18 [17]

Answer:

Option a                                

Explanation:

In simple words, value maximization refers to the process under which the managers of an organisation tries to make or increase the existing economic profits, that is, the money left with the organisation after paying for the obligations of all the money providers including the lat in hierarchy, the equity shareholders.

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3 years ago
The shareholders’ equity of Tru Corporation includes $540,000 of $1 par common stock and $1,140,000 par of 7% cumulative preferr
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Answer:

$12,600

Explanation:

Annual Dividend to preferred stock = $1,140,000 × 7%

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A schedule of preferred stock dividend in Arrears is as follows :

               Dividend              Paid                Arrears

2016        $79,800           $54,000           $25,800

2017        $79,800           $54,000           $51,600

2018        $79,800           $131,400                 0

Dividends of $131,400 has to be paid in 2018 to cover all the arrears.

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3 years ago
Which of the following best describes what a manager does?
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D works for a company and produces resources to make a prpduct

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