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3 years ago

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

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3 years ago

Consider this problem: Fast Auto Service provides oil and lube service for cars. It is known that the mean time taken for oil an

astraxan [27]

Answer:

The maximum time guaranteed = 19.04 minutes.

Explanation:

From the given problem data, we have:

Let Y be the random variable which follows the normal distribution.

So,

Y ~ N(u = 15, SD = 2.4

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Let the maximum time guaranteed is = M

So,

P (Y > M) = 0.05 equation 1

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P(Y $\leq$ M) = 1 - 0.05

P(Y $\leq$ M) = 0.95

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From the equation 2, we have,

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6 0

3 years ago

After major hurricanes like Katrina, many ethical home repair and building supply businesses continue to charge pre-hurricane pr

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Answer:

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3 years ago

Patrick Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2014, the company has the follo

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Answer:

cash 4,900,000 debit

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3 years ago

If the market interest rate drops to 5% on December 31, 2022, it will cost $458,290 to retire the bonds. Record the retirement o

dlinn [17]

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To cash a/c 458,290.

(Being the bonds retired and interest amount paid)

Learn more about the retirement of bonds here:

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3 0

1 year ago

Present value​ (with changing interest​ rates).

Present value (with changing interest rates).