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Oxana [17]
4 years ago
10

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of

$24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.04 annually. If you use a discount rate of 0.09 for investment products, what is the present value of this growing perpetuity? Round to two decimal places.
Business
1 answer:
Vinil7 [7]4 years ago
8 0

Answer:

The present value of this growing perpetuity is $499,200.

Explanation:

If cashflow is growing at a constant rate, then we call this a growing perpetuity.

Present Value of Growing Perpetuity = [Payment × ( 1 + growth rate)] ÷ [(discount rate - growth rate)]

                                                              = $24,000 (1.04) ÷ (0.09 - 0.04)

                                                              = $499,200

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Four children pull on the same stuffed toy at the same time, yet there is no net force on the toy. How is this possible?
natita [175]
Four children possibly around the same age , they are pulling on the toy most likely with the same amount of strength this will act as no force.

Example : If you and I were playing " tug-a-war " and we both pull on opposite sides with the same amount of force no one would move, the rope would be still, because the same force is on both sides of it.

________________________________________________________

I really hope that i helped you out a lot :) have a nice day.




 
6 0
3 years ago
Read 2 more answers
Sarah's Computer City sells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order fo
Reptile [31]

Answer:

437.50

Explanation:

First you multiply

5000 x $6= $300.00

Then you add what she pays to order the discs

$300.00 + 50= $350

Then you find 25% of the purchase price by multiplying

350 x .25= 87.50

So the total...

350+87.50= 437.50

Can i get brainliest plz?!

6 0
3 years ago
The term ____________________ refers to a market exchange that affects a third party who is outside or external to the exchange.
Flauer [41]

Answer: B. spillover

Explanation:

A Spillover is used to refer to the effects of an Externality which is what happens when a market exchange leads to effects on a third party that was not party to a transaction between the contracting parties.

The activities that result from the transaction spillover to the third party and can be either negative or positive. A negative spillover would be countries in Africa getting harsher global warming effects due to companies in china polluting the atmosphere.

5 0
3 years ago
Fess receives wages totaling $74,500 and has net earnings from self-employment amounting to $71,300. In determining her taxable
Ludmilka [50]

Fess wages                 $74500

Net self employ           $51300                                    

Fess must count $39,200 of the taxable self employment income for the OASDI tax                    _______

                                   125,800 First

First       $113700

             (125,800)

           _________

                12,100

-

Correct Answer: $39,200

                           ($113,700 - $74,500)

8 0
3 years ago
Assume the economy has an 6 percent chance of booming, am 8 percent chance of being recessionary, and being normal the remainder
Svetach [21]

Answer:

Expected return = 10.6%

Explanation:

Expected return = SUM(prob. *return)

Prob.(normal) = 100% - 6% - 8% = 86%

Plug in the numbers in the above formula. (I'll be using them as decimals)

Expected return = (0.06*0.225) + (0.08 * -0.08) + (0.86 * 0.115)

= 0.0135 -0.0064 + 0.0989

= 0.106 or 10.6% as a percentage

Therefore, the expected return = 10.6%

4 0
3 years ago
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