Answer:
Today, the investment is worth $31,997.29
Explanation:
Giving the following information:
An investment offers $5,900 per year for 15 years, with the first payment occurring one year from now. The required return is 6 percent
First, we need to calculate the final value, using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual pay= 5,900
n= 15
i= 0.06
FV= {5,900*[(1.06^15)-1]} / 0.06= $137,328.22
Now, we can determine the present value:
PV= FV/ (1+i)^n
PV= 137,328.22/ 1.06^25= $31,997.29
Answer:
The number of CDs = 111.36
The number of movie videos = 242.72
N/B: I choose not to round up the answers.
Explanation:
The method used is the Lagrangian method. Basically, the optimization problem we are trying to solve is the utility function 
subject to the constraint
.
So the optimization problem(Lagrangian) is
,
where 
is a constant called the Lagrange multiplier.
To find the optimal consumption, we need to maximize the Lagrangian with respect to the variables 
. This we do by differentiating 
with respect to each variable and then equate to 0.
Equate (1) and (2), to get 
and substitute into (3) to get 
. Substituting into 
to get the corresponding value of 
.
Answer:
$2,189.76
Explanation:
<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>
<em>The price of the bond can be calculated as follows:</em>
<em>Step 1</em>
<em>PV of interest payment</em>
Interest payment =( 5.94%× $2000)/2
= $59.4
Semi annual yield = 5.1/2 = 2.6%
PV of interest payment
= 59.4× (1-(1.026)^(-20×2))/0.026)
= 59.4 × 24.41400537
=<em>$ 1,450.19</em>
Step 2
<em>PV of redemption value</em>
= 2,000 × (1+0.051)^(-20)
= 2,000 × 0.369781925
= 739.56
Step 3
<em>Price of bond </em>
= $1,450.19 + $739.56
=$2,189.76
Answer:
are $270 billion
Explanation:
Change in business inventories in 2012 = -$70 billion
GDP of 2012 = $200 billion
Final sales in 2012 = GDP - Change in inventory
Final sales in 2012 = $200 billion - (- 70 billion )
Final sales in 2012 = $200 Billion + 70 billion
Final sales in 2012 = $270 billion
Hence proved that the correct answer is $270 billion
Answer: (A) Event marketing
Explanation:
The event marketing is one of the business promotional strategy in which the various types of brands, products and the services are get promoted in the market so that the customers or users are get aware about the specific brand and the new products.
According to the given question, the Event marketing is one of the type of strategy that best illustrating the given scenario about a non profit organization is conduct a food fair and the collected fair is basically contributed for the charity purpose.
On the other hand, along with charity the various types of restaurants distribute their pamphlets and promote their restaurants business in the event. Therefore, Option (A) is correct answer.
