1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Last season at City Opera House, far more people attended opera X than opera Y. However, opera Y generated far greater net profi
ryzh [129]

Answer:

c. a difference in the subject matters of operas X and Y

Explanation:

All factors could directly explain the fact that opera Y generated far greater net profits that did opera X except for this one. Although the subject matter might have some impact on sales, it could not do so in a direct way. It could only do so if we take other factors into account, such as the cost of producing a particular opera or the interest that people have on an opera (which results in greater or lesser ticket sales).

6 0
3 years ago
Molly Jasper and her sister, Caitlin Peters, got into the novelties business almost by accident. Molly, a talented sculptor, oft
Paladinen [302]

a. The computation of Mollycaits' operating break-even point is <em>2,473 units</em> ($4,500/$1.82).

b. The calculation of Mollycaits' EBIT on the department store order is <em>$812.40</em> ($9,500 - $8,688).

c. If department stores' price were $9.51, the EBIT will be <em>$5,387</em> ($14,075 - $8,688).

Note that for (b) and (c), the fixed cost is not considered.

d. Without paying more than $7.69, the quantity that will result in an EBIT of $3,700 is <em>4,505 units</em> ($4,500 + $3,700)/$1.82

e.  Varieties of Mollycaits = 15 with variable cost of $5.87

f. The recommendation to Molly and Caitlin with regard to pricing and varieties to offer is that, while the company can varieties to suit the needs of customers, it must ensure that it does not price them below $5.87, its operating cost.

Data and Calculations:

<u>Special contract</u>:

Units of figurines offered = 1,480

Sales value of offer = $9,500

Selling price per unit = $6.42 ($9,500/1,480)

Variable operating cost = $5.87

Contribution margin per unit = $0.55 ($6.42 - $5.97)

<u>Normal business</u>:

Estimated average price per unit = $7.69

Variable operating cost = $5.87

Contribution margin per unit based on average price = $1.82 ($7.69 - $5.87)

Fixed cost per month = $4,500

Thus, Molly and Caitlin can offer various types of figurine, but they must sell at least 2,473 units to break-even.

Learn more about computing break-even points here: brainly.com/question/9212451

5 0
3 years ago
questions What do you see as the main difference between a successful and an unsuccessful decision? How much does luck oues vers
ICE Princess25 [194]

Answer:

Explanation:

the difference between a successful and an unsuccessful decision is with a successful decision you would be successful and make profit since this is the subject of business and an unsuccessful decision will make you lose profit and make you lose into Investments.  there is no luck vs skill this is all skill actually.  skill has to do with this because you need to have certain experience in a certain thing to be having a successful decision.  

6 0
3 years ago
Your friend wants to open a clothing shop. A necessary capital resource is a
saw5 [17]

Answer: Your friend wants to open a clothing shop. A necessary capital resource is a <u>place to open the shop.</u>

Explanation: Capital is the element constituted by money and infrastructure, which are needed to take advantage of human and natural resources in the productive process, considered as essential by the capitalists, since without money and other economic resources, companies cannot settle and industries, because they need it to have facilities, furniture, machinery, buy raw materials, pay staff, and so on.

6 0
3 years ago
Using the following routing information and a From-To Chart, determine the total flow efficiency of the parts assuming an alphab
frosja888 [35]

Answer:

hello your question is incomplete attached below is the complete question

answer: 28.12%

Explanation:

The first table is the allotting of relative weighted value in from to chart and also finding the Total.

The second table is found by multiplying 1-times cell distance in the upper 2-times with cell distance in lower triangular values.

Hence Flow efficiency = (Total / penalty ) * 100

                         = ( 36 / 128 ) * 100 = 28.12%

7 0
3 years ago
Other questions:
  • Daryl is the founder of a successful smartphone application. He is detail-oriented and has high expectations of his employees. H
    11·2 answers
  • By providing training in the responsible service of alcoholic beverages to servers and bartenders a business owner will A. Serve
    14·1 answer
  • The unadjusted trial balance of Sketch Star Makers Inc., prepared as of December 31, 2018, includes the following account balanc
    7·1 answer
  • How many of Amway distributors make money
    12·1 answer
  • A company's Inventory balance at 12/31/16 was $188,000 and $200,000 at 12/31/15. Its Accounts Payable balance at 12/31/16 was $8
    14·1 answer
  • Which of the following statements accurately describes the statement of cash flows?A) It is the link between net income and earn
    9·1 answer
  • Easy question.........
    9·2 answers
  • Widmer Company had gross wages of $301,000 during the week ended June 17. The amount of wages subject to social security tax was
    11·1 answer
  • Cascade Company was started on January 1, Year 1, when it acquired $151,000 cash from the owners. During Year 1, the company ear
    10·1 answer
  • In the product markets of the circular flow model, households provide __________ to the business sector in exchange for goods an
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!