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Fofino [41]
3 years ago
12

What is the present value of $5,000 due in ten years assuming money grows according to compound interest and the annual effectiv

e rate of interest is 4% for the first three years, 5% for the next two years, and 5.5% for the final five years?
Business
1 answer:
nadya68 [22]3 years ago
8 0

Answer:

$ 3,085

Explanation:

Given that;

The present value(PV) ------ ???

Future  payment (F) ----  $5,000

The annual effective rate are 4%, 5% and 5.5% respectively, which can be illustrated as;

r = 0.04, 0.05 and 0.055 respectively.

The present value  formula is given as:

PV=\frac{F}{(1+r)^n}

PV=\frac{5000}{(1+0.04)^3(1+0.05)^2(1+0.055)^5}

PV = 5000 × (1.04)⁻³(1.05)⁻²(1.055)⁻⁵

= $ 3,084.814759

≅ $ 3,085

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A paid advertisement for the Texas Department of Economic Development, Tourism Division, invited readers of a magazine to mail i
lawyer [7]

Answer: Lead generation  

     

Explanation: In simple words, lead generation  refers to the process under which an entity tries to make their potential customers interested in their product for the first time. It can also be seen as the initiating step in building the customer base.

In the given case, the Texas department is trying to attract tourists to visit their state. It is the first time they are trying to do so by inviting the readers of magazines.

Hence from the above we can conclude that the primary purpose of their ad was lead generation.

4 0
2 years ago
An investor owns 5,000 shares of IBM stock, $105 per share. He thinks that there is no large rise and possible drop in price. Th
lutik1710 [3]

Answer:

If IBM stock price rises from $105 to $112, the profit associated with the passive strategy is $ 35,000 and the profit associated with the covered call writing strategy is $ 45,000 .

Explanation:

Shares = 5000

Price of shares = $105

Sell Price = $112

The profit associated with the passive strategy  = $(112 - 105) × 5000

= $ 35,000

Now with covered call also included in the strategy the profit/loss from covered call can be calculated as

Strike Price = $110

Spot Price = $112

Total Shares on which Call options are sold = 50 × 100 = $5000

Total Premium received = 5000 × 4 = $20000

(Spot Price - Strike Price ) × Total Shares

= $(112 - 110) × 5000

= $10,000

Hence Net Profit = Premium received - $10,000 = $20,000 - $10,000

= $ 10000

Hence the profit associated with the covered call writing strategy

= $35,000 + $10,000

= $ 45,000

5 0
3 years ago
Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage. The pilgrimage was not a requirement of h
Volgvan

Answer: No. It does not violate Title VII if Cynthia's employer does not grant her the leave.

Explanation:

From the question, we are informed that Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage and that the pilgrimage was not a requirement of her religion, but Cynthia felt it was a calling from God.

Based on the scenario, Title VII is not violated if Cynthia's employer does not grant her the leave. According to the court, when an employee says that based on his or her religious belief, he or she is required to go to a pilgrimage, the person has to prove beyond reasonable doubt.

In this case, her church which is the Roman Catholic didn't call for a pilgrimage as it was her personal choice. Therefore, Title VII is not violated if Cynthia's employer does not grant her the leave.

3 0
3 years ago
How much total interest will Molly pay using this plan?
aleksandrvk [35]
Theres no equation sorryy
8 0
2 years ago
All applicants for employment at rst corp. must pass a typing? test, including production? workers, custodians, and forklift ope
viva [34]
The answer to this is "Pre-employment Qualifying Test". When all applicants for employment at  RST corporation must pass a typing test including the production workers, the custodians and the forklift operator as well as duties with no typing duties must undergo this test. Then at this instance, the typing test is a Pre-employment Qualifying Test.
6 0
3 years ago
Read 2 more answers
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