1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
s344n2d4d5 [400]
3 years ago
8

A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of t

his perpetuity on the date that it is purchased, given that the interest rate is 4%?
Business
1 answer:
nika2105 [10]3 years ago
5 0

Answer:

$21,370.1071

Explanation:

The computation of the present value of this perpetuity is shown below:

= The present value after five years + present value on the date of purchase

where,

The present value after five years is

= ($1,000) ÷ (1.04)^5

= $821.9271

And, the present value on the date of purchase is

=  $821.9271 ÷ 4%

= $20,548.18

Hence, the present value of the perpetuity is

= $821,.9271 + $20,548.18

= $21,370.1071

You might be interested in
Please and thank you
uysha [10]

1. Annual percentage rate

2. Secured card

3. Cash advance

4. Balance transfer

I hope this helps!

5 0
3 years ago
Read 2 more answers
A collection of verbal and symbolic assertions that specify how and why variables are related, and the conditions under which th
Vladimir79 [104]

Answer:

-1 to +1

Explanation:

The correlation coefficient range is from -1 to +1.

-1 shows that there is perfect negative correlation.

+1 shows that there is perfect positive correlation.

0 shows there is no correlation.

Positive correlation shows that with the increase of let's say X, there would also be increase of Y. They would positively move together

Negative correlation shows that two variable move in opposite direction.

6 0
3 years ago
Your Aunt Elsa has $500,000 invested at 6.5%, and she plans to retire. She wants to withdraw $40,000 at the beginning of each ye
Ksju [112]

Answer:

22.85

Explanation:

Present value (PV): $500,000

Rate: 6.5% per annual

Payment (PMT) : $40,000 per year

We can use excel to calculate the maximum number of whole payments that can be withdrawn before the account is exhausted

=NPER(rate, PMT, -PV,,1) = NPER (6.5%,40000,-500000,,1) = 22.85

Download xlsx
7 0
4 years ago
What are the fundamentals of a wealthy life?
Alenkinab [10]

Answer:

  • Avoiding debt.
  • Budgeting properly.
  • Setting short-term and long-term goals.
  • Investing in yourself.
  • Diversifying your assets.
  • An understanding of risk and reward

8 0
3 years ago
Read 2 more answers
Plz,what is memorandum​
alekssr [168]

Answer:

A written message in business or diplomacy.

Explanation:

I hope that this helps!! :)))

7 0
3 years ago
Read 2 more answers
Other questions:
  • Sequence the steps for closing entries.
    7·1 answer
  • Grapes are a counted as an intermediate good only if they are used to produce another good such as wine. b. counted as an interm
    15·2 answers
  • A department store decides to use "secret shoppers" at unannounced times to test for service quality among its personnel. Store
    15·1 answer
  • Which of the following statements about a company's strategy is true? A company's strategy is mostly hidden to outside view and
    14·1 answer
  • Your goal is to have $15,000 in your bank account by the end of four years. If the interest rate remains constant at 4% and you
    5·1 answer
  • Heights of adult women are distributed normally with a mean of 162 centimeters and a standard deviation of 7 centimeters.
    14·1 answer
  • If the original level of aggregate demand is AD0, then an expansionary monetary policy that shifts aggregate demand to AD1 will
    11·1 answer
  • Entries for Notes Payable A business issued a 60-day, 10% note for $83,000 to a creditor on account. Journalize the entries to r
    12·1 answer
  • A total materials variance is analyzed in terms of quantity and quality variances. tight and loose variances. price and quantity
    8·1 answer
  • At a recent stockholders meeting for Ignate Inc., a group of stockholders expressed disagreement with the way that the managers
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!