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
astra-53 [7]
3 years ago
8

Present value​ (with changing interest​ rates).

Business
1 answer:
densk [106]3 years ago
6 0

Answer:

present value = $12811.98

present value = $11428.17

present value = $9964.92

Explanation:

given data

injury settlement = ​$14,000

time = 3 year

opportunity cost = 3​%

opportunity cost = 7​%

opportunity cost = 12​%

solution

we will apply here Present value formula that is

present value = \frac{future\ value}{(1+r)^t} ..............................1

put here value of opportunity cost rate we get

present value = \frac{14000}{(1+0.03)^3}

present value = $12811.98

and

present value = \frac{14000}{(1+0.07)^3}

present value = $11428.17

and

present value = \frac{14000}{(1+0.12)^3}

present value = $9964.92

You might be interested in
Tom is a junk remover who occasionally finds rare antiques to sell. He uses an online auction site to sell each antique for the
Hunter-Best [27]

Answer:

Option (b) is correct.

Explanation:

There are three types of price discrimination:

(i) First degree price discrimination or Perfect price discrimination

(ii) Second degree price discrimination

(iii) Third degree price discrimination

Perfect price discrimination refers to a situation in which the selling price of the product is equal to the price that a consumer willingness to pay for the product. This is a situation in which there is no consumer surplus.

Consumer surplus = Actual price paid by the consumer - Willingness to pay for the product

4 0
3 years ago
A company's December 31 work sheet for the current period appears below. Based on the information provided, what is net income f
lbvjy [14]

Answer:

Net income for the current period is $2,350.

Explanation:

Calculation of Net Income for the Current Period.

                                                                    $               $

Fees earned                                                             7,250

Less Expenses :

Rent expense                                           1,300

Salaries expense                                     2,300

Utilities expense                                         345

Insurance expense                                    650

Supplies expense                                        115

Depreciation expense—equipment          190   (4,900)

Net Income / (Loss)                                              2,350

3 0
3 years ago
7. You have saved $4,000 for a down payment on a new car. The largest monthly payment you can affort is $350. The loan will have
nordsb [41]

Answer:

$13,290.89  and $15,734.26

Explanation:

In this question we have to use the Present value function which is shown on the attachment below:

In the first case

Provided that

Future value = $0

Rate of interest = 12%  ÷ 12 months = 1%

NPER = 48 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $13,290.89

In the second case

Provided that

Future value = $0

Rate of interest = 12%  ÷ 12 months = 1%

NPER = 60 months

PMT = $350

The formula is shown below:

= PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $15,734.26

8 0
4 years ago
When the demand for smartphones increased in Preteresia, a country in Eastern Europe, the smartphone manufacturers started impor
Elan Coil [88]

Based on the actions of Preteresia , we can infer that this scenario best describes <u>Global Convergence</u>.

<h3>What is Global Convergence?</h3>
  • It refers to the current trend of various dimensions of the human life being integrated across nations.
  • Describes the integration of dimensions such as business, culture, the economy, and political policy across nations.

Preteresia in helping Abresia build those facilities, is engaging in global convergence because the industries in both countries are being integrated to allow for more efficient smartphone manufacturing.

In conclusion, this is global convergence.

Find out more on the effects of global convergence at brainly.com/question/18077255.

7 0
2 years ago
An investment made 10 years ago is worth $100,000. if the annual return over these 10 years was 7.20%, then the original investm
GenaCL600 [577]

The original investment amount was $ 68.56 then annual return on investment is 10 years was 7.20% interest.

What is investment?

Investment definition is assets invested in to build wealth and save money on bank, property and projects for specific time period of money.

PV is a present value, FV is a future value, i is interest, n is number of period

PV= FV/ (1 + i) n

PV= 1, 00,000 / (1+7.20%) 10

PV =68.5650014087

As a result, the original amount of investment is 68. 56

Learn more about on investment, here:

brainly.com/question/15353704

#SPJ1

7 0
2 years ago
Other questions:
  • Why did Samuel Gompers seek to forge closer ties with forward-looking corporate leaders? a. He wanted to work his way into circl
    11·1 answer
  • Adidas decides to invest $100,000,000 into a shoe factory in Vietnam from its money market account. The money market account was
    8·1 answer
  • Harry was unable to complete a task assigned to him by his superior. He also refused to work overtime. Consequently, Harry's sup
    11·1 answer
  • When the price of penguin patties decreases by 5%, the quantity of flopsicles sold increases by 4% and the quantity of mookies s
    11·1 answer
  • Inventory Control and Planning Neilsen Cookie Company sells its assorted butter cookies in containers that have a net content of
    9·1 answer
  • Trompenaars found that a(n) _____ organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China, Hong
    14·1 answer
  • Which one of the following best describes the concept of erosion? a. The cash flows of a new product that come at the expense of
    6·1 answer
  • Schrank Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 25% of th
    11·1 answer
  • The government of Paulaville decides to set prices of wheat. Calculate the amount of the shortage or surplus if the government s
    8·1 answer
  • Endorsement occurs when an athlete licenses his or her name to be used as a type of testimonial for a product or service.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!