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tester [92]
3 years ago
14

A cash-strapped young professional offers to buy your car with four, equal annual payments of $3,000, beginning 2 years from tod

ay. Assuming you're indifferent to cash versus credit, that you can invest at 10%, and that you want to receive $9,000 for the car, should you accept?
Business
1 answer:
kiruha [24]3 years ago
5 0

Answer:

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

Explanation:

We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944

If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.

First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)

Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)

Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)

Fourth payment future value = 3000*1.1=3300

Add them all up = 15315

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

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Hal has just graduated from four years of college. For the last two years, he took out a Stafford loan to pay for his tuition. E
Nonamiya [84]

Answer: The answer is D, $13,615.

7 0
2 years ago
Which highest and best use criterion would require an appraiser to consider the frontage of the site?
Bond [772]

physically possible is the highest and best use criterion that would require an appraiser to consider the frontage of the site.

Criterion is usually a plural noun that refers to a criterion by which a judgment can be made. Its singular form is the norm, but evidence shows that the norm is often used in both singular and plural forms, as are data and agenda, and their lesser-used singular forms datum and agenda. I'm here.

For example, SAT score is the predictor and his GPA in college is the criterion. Regression analysis confirms that there appears to be a strong correlation between SAT scores and his GPA in college. However, a high SAT score does not necessarily mean a high GPA in college.

Learn more about criterion here: brainly.com/question/17192140

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8 0
1 year ago
Scott Company sells merchandise with a one-year warranty. Sales consisted of 2,500 units in Year 1 and 2,000 units in Year 2. It
Alenkasestr [34]

Answer:

$0

Explanation:

Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:

Dr Warranty expense 25,000

    Cr Warranty liability 25,000

During year 2, they will record the warranty expense for that year:

Dr Warranty expense 20,000

    Cr Warranty liability 20,000

That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.

8 0
3 years ago
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

8 0
3 years ago
Samuel assists his clients in investing in the stock market. He not only acts as an agent by buying and selling corporate stocks
givi [52]

Answer:

Samuel plays the role of a securities broker.

Explanation:

A securities broker has the function of being the link between the investor and the global financial markets. The broker helps guide the client to make the best investment decisions in the market.

In addition to advising its clients, the securities broker is responsible for buying and selling the shares of its client. To be a securities broker, you must have higher studies in administration, economics, or finance, also have completed the preparation to work as a broker.

<em>I hope this information can help you.</em>

8 0
3 years ago
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