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stira [4]
3 years ago
14

What is the present value on January 1, 2016, of $30,000 due on January 1, 2021, and discounted at 12% compounded annually?What

is the present value on July 1, 2016, of $8,000 due January 1, 2021, and discounted at 16% compounded quarterly?What is the amount of the present value discount (the difference between future value and present value) on $8,000 due at the end of 5 years at 10% compounded annually?
Business
2 answers:
Anastaziya [24]3 years ago
7 0

Answer:

1. The Present value on January 1, 2016 of $30,000 due on January 1, 2021 and discounted at 12% is:

$17,022.80

2. The present value on July 1, 2016 of $8,000 due January 1, 2021, and discounted at 16% compounded quarterly is:

$3,949.02

3. The amount of the present value discount (the difference between future value and present value on $8,000 due at the end of 5 years at 10% compounded annually is:

$3,032.63

Explanation:

You will need to invest $17,022.80 at the beginning to reach the future value of $30,000.00.

FV (Future Value) $30,000.00

PV (Present Value) $17,022.80

N (Number of Periods) 5.000

I/Y (Interest Rate) 12.000%

PMT (Periodic Payment) $0.00

Starting Investment $17,022.80

Total Principal $17,022.80

Total Interest $12,977.19

2. You will need to invest $3,949.02 at the beginning to reach the future value of $8,000.00.

FV (Future Value) $7,999.99

PV (Present Value) $3,949.02

N (Number of Periods) 18.000

I/Y (Interest Rate) 4.000%

PMT (Periodic Payment) $0.00

Starting Investment $3,949.02

Total Principal $3,949.02

Total Interest $4,050.97

Total Interest $7,446.85

You will need to invest $4,967.37 at the beginning to reach the future value of $8,000.00.

FV (Future Value) $8,000.00

PV (Present Value) $4,967.37

N (Number of Periods) 5.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $0.00

Starting Investment $4,967.37

Total Principal $4,967.37

Total Interest $3,032.63

ale4655 [162]3 years ago
5 0

Answer:

1. Future Value = 30,000

Rate = 0.12

Annual period, NPER = 5

Present value, PV = PV(0.12, 5,0,-30,000 ,0)

Present value, PV = $17,022.81

2. Future value = 8,000

Quarterly rate = 16%/4 = 4%

Number of quarters, Nper = 4.5*4 = 18

Present value, PV = PV (4% , 18, 0, -8,000 , 0)

Present value, PV = $3,949.02

3. Future value = 8,000

Annual rate = 0.1

Annual period, Nper = 5

Present value, PV = PV(0.1, 5, 0, -8000, 0)

Present value, PV = $4,967.37

Present value Discount = 8,000 - 4,967.37

Present value Discount = $3,032.63

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Answer:

O Compound interest pays interest both on the principal and the interest earned in each period.

Explanation:

Compound interest is preferred as it measures the interest on the principal amount and the accrued interest. In the compounding interest, the interest i.e. earned should be added to the principal in order to create the new principal amount. The interest earned at the closing of every year should be more than the last period as the principal amount rises at the starting of the period

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Therefore the last option is correct

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3 years ago
The key distinction between technological efficiency and economic efficiency is that technological efficiency​ _______ and econo
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Answer:

The correct answer is option B.

Explanation:

The main difference between technological efficiency and economic efficiency is that technological efficiency is concerned with the quantity of outputs used while economic efficiency is concerned with the value of inputs used.

Technological efficiency implies that a firm is producing a level of input using the least possible quantity of inputs. Economic efficiency occurs when a firm is able to produce a level of output at the least possible cost.

Technological efficiency does not require economic efficiency but economic efficiency require technological efficiency.

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3 years ago
During the second quarter of the year, Wallace Enterprises received $30,000 from customers in exchange for providing electronic
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Answer:

On an income statement, the company would declare c. $21,000 expenses

Explanation:

Wallace Enterprises received $30,000 from customers in exchange for providing electronic components. Income from the exchange was $30,000

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The company recognizes gain $9,000.

On an income statement, the company would declare $21,000 expenses

5 0
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Marco predicts he will have $18,750 in expenses for one year of college. He expects to receive $3,450 in grants annually. How mu
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The standard quantity allowed for the units produced was 4,500 pounds, the standard price was $2.50 per pound, and the materials
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Answer: There are 4,350 units produced.
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3 years ago
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