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Art [367]
3 years ago
8

What is the value today of a money machine that will pay $4,010.00 per year for 13.00 years?

Business
1 answer:
Maurinko [17]3 years ago
3 0

Answer:

The present value of the machine is $35499

Explanation:

The annual amount or annuity amount = $4010 per year.

Total number of years = 13 years

Here, the interest rate is not given so we just assume the interest rate = 6% per annum.

Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.

The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r

The present value of machine = (4010(1 – (1+6%)^-13) ) / 6%

The present value of machine = $35499

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A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat
Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }

so in this particular case that one year later there are 29 years to maturity so we have:

price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }

price=553.6638

so as we have a higher rate the investment has the next return:

return=\frac{553.66}{627.73} -1

return=-11.8\%

4 0
2 years ago
Being financially responsible is no easy task for any age, but it is certainly the best choice for everyone to follow. One of th
tensa zangetsu [6.8K]

Answer:

Jesus christ

Explanation:

That was the longest prompt ive ever read

8 0
2 years ago
Read 2 more answers
Suppose you are working for a small start up as a purchasing agent. You are purchasing a product that requires that you pay in b
irina1246 [14]

The product cost in US dollars given the exchange rate of bitcoins per dollar is $500.

<h3>What is the product cost in US dollars?</h3>

The exchange rate is the rate at which one currency is exchanged for another currency. In this question, 1 dollar is equivalent to 0.0035.

$1 = 0.0035 bitcoins

1.75 / 0.0035 = $500

To learn more about exchange rate, please check: brainly.com/question/25780725

8 0
2 years ago
A trial balance (select one):
Furkat [3]

Answer:

a. is a list of accounts with their balances at a given time.

Explanation:

There are two columns in the trial balance, namely debit columns and columns of credit. The total amount of columns of debit and credit should always match and equaled.

The debit columns reflect assets and expenses side while earnings, stockholder equity, and liability side are listed in the credit column. It is prepared for the given period of time.

4 0
3 years ago
Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and i
MrRissso [65]

Answer:

The correct answer is Domestic Stage/First Stage.

Explanation:

In the first stage of the international development of a company, also known as the national stage, the orientation and operation of an organization is based on the local area, its market capacity is limited to the country of origin. However, its managers seek to transcend borders to publicize their products / services globally, initially intervening in some international market to expand their production volume and achieve economies of scale.

4 0
2 years ago
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