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arsen [322]
3 years ago
6

Clarissa wants to fund a growing perpetuity that will pay $6000 per year to a local museum, starting next year. She wants the an

nual amount paid to the museum to grow by 6% per year. Given that the interest rate is 10%, how much does she need to fund this perpetuity?
Business
1 answer:
likoan [24]3 years ago
4 0

Answer:

She needs $150,000 to fund this perpetuity.

Explanation:

In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.

PV of growing perpetuity = Payment/ R-G

The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.

6,000/0.1-0.06

=6,000/0.04

=150,000

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Mary Lou is planning to stay at home with her children until they enter first grade. Mary Lou's husband Bob, however, has just p
Paul [167]

Bob's suggestion will allow Mary to find a middle ground between her family and her career.

Explanation:

Mary will be able to follow her career path which is rewarding and lucrative if she does not have to work full time because if she follows the path she will have to work part time and she will still have time to spare for her children.

The same goes for her family life because if she had to have chosen the job she would not be able to take care of her children and give them the upbringing she wants to, if she had left the job  she would have to let go of her career.

8 0
2 years ago
About 6 out of 10 people entering a community college need to take a refresher mathematics course. if there are 850 enteringâ st
musickatia [10]

Answer:510 students

Explanation: given that total student is 850

And Of every 10 student 6 will have to sit for a refresher math course

Hence the number that will need a refresher math course will be (850/10)*6= 510

Or better still to better understand this let's use the crossing multiplication method

of 10 student 6must do a refresher math then

Of 850 students x must do a refresher math

Cross multiplying we have

X=(850*6)/10=510 students

5 0
3 years ago
Arista always spends 10 % of her income on gizmos. Assume that her income increases by some percentage while the price of gizmos
lina2011 [118]

Answer:

1

Explanation:

Income elasticity is how the quantity demanded of a product changes due to a change in the income of an individual.

The formula for calculating Income elasticity of demand is, percentage change in quantity demanded divided by the percentage change in income.

Here the income of Arista increases but the price of gizmos remains the same, that is why the 10% now will be more than what it used to be before the increase in income.

Hope this helps. Good luck.

3 0
2 years ago
Is the manager of South African Airways actively involved in decisions of business?
Viktor [21]

Answer:

he is not

Explanation:

This is being justified by the corruption that is happening in the SAA without his consultation

5 0
1 year ago
What’s the answer??
UkoKoshka [18]
No, he can’t afford one
8 0
3 years ago
Read 2 more answers
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