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I am Lyosha [343]
3 years ago
15

What is the future value of a 5 year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?

Business
1 answer:
SCORPION-xisa [38]3 years ago
3 0

<u>Answer:</u> The future value is $1348.48

<u>Explanation:</u>

To calculate the future value of annuity, we use the equation:

\text{Future value of annuity}=P[\frac{(1+r)^n-1}{r}]

where,

P = principle amount = $ 200

r = Rate of interest = 15 % = 0.15

n = number of periods = 5

Putting values in above equation, we get:

\text{Future value of annuity}=200[\frac{(1+0.15)^5-1}{0.15}]\\\\\text{Future value of annuity}=\$ 1348.48

Hence, the future value is $1348.48

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Kermit is considering purchasing a new computer system. The purchase price is $133,063. Kermit will borrow one-fourth of the pur
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Answer:

NPV =  $20,040.35  

Explanation

The net present value NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

Annual net cash inflow = Savings - Technician cost = 61,427- 20,000

                                       = $41,427

PV of Cash flow= $41,427  × (1-(1.12^(-5))/0.12=  149,335.06  

PV of salvage value = 1.12^(-5)×$6,641 =  3768.281749

NPV = 149,335.06  + 3,768.281  -133,063= 20,040.35  

             

7 0
3 years ago
The federal government tends to increase their spending to get the economy out of recessions. Explain the expected impact on eac
RoseWind [281]

Answer:

Aggregate demand (AD) refers to the total demand for goods and services in an economy in an economy at a given price level.

Components of Aggregate Demand (AD); Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M).

During the recession, the government can affect aggregate demand by increasing their fiscal expenditures and reduce taxation which is known as Fiscal policy.

Expansionary fiscal policy affects aggregate demand through an increase in government spending and a reduction in taxation. Those factors influence employment and increase household income, which then impacts consumer spending and investment

Fiscal policy determines government spending and tax rates. Expansionary fiscal policy, usually enacted in response to recessions or employment shocks, increases government spending in areas such as infrastructure, education, and unemployment benefits.

Explanation:

4 0
3 years ago
Felicia is very warm and accepting to both of her two children, but she also sets firm rules that the children must follow with
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Answer:

Responsive and demanding

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according to Baumrind, there are four parenting styles :

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Parenting behaviour are divided into two dimensions :

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Responsiveness - refers to the extent to which the parent accepts and recognises their child's needs

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Task identity refers to: Group of answer choices the degree to which a job entails a variety of different activities, requiring
SVETLANKA909090 [29]

Answer:

the degree to which a job requires completion of an identifiable piece of work with a visible outcome.

Explanation:

According to the  Job Characteristics Model by Hackman and Oldham (1980), jobs have 5 important characteristics

<h3>The characteristics include : </h3>

1. Task identity : It involves an employee carrying out a job function from the beginning to the end rather than in bits and pieces. It involves the the degree to which a job requires completion of an identifiable piece of work with a visible outcome. Job satisfaction is higher when an employee is about to complete the whole task and not just a part of the task.

2. Task significance : the degree to which a job done impact the lives of people. They can include individuals in the organisation or in the society

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4. Feedback : the degree to which an employee receives report on the work or functions carried out in the organisation

5. Skill variety : the degree to which a job entails a variety of different activities, requiring the use of different skills and talents

4 0
3 years ago
Jillian is mapping her co-worker's decision-making process. she puts a few words in braces alongside a shaded rectangle. what do
Eva8 [605]
<span>The use of braces explains the meaning of the words preceding the brace. Here Jillian actually mapping her co-worker's decision-making process so the braces probably contain decisions made on some circumstances. The circumstances may be given outside the brace.</span>
7 0
3 years ago
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