Answer:
Option 2 is slightly better.
Explanation:
Giving the following information:
They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today.
To determine which of the options is better, we need to calculate the present value. To do this we will assume an interest rate of 10% per year compounded annually.
PV= FV*(1+i)^n
<u>Option 1:</u>
PV= 85000/1.10 + 85,000/1.10^2= $147,520.66
<u>Option 2</u>:
PV= 20,000 + 74,000/1.10 + 74,000/1.10^2= 148,429.7
Option 2 is slightly better.
Answer:
Monthly payment would be $250.37
Explanation:
The monthly payment can be determined using excel pmt formula as follows:
=pmt(rate,nper,-pv,fv)
rate is the APR of 6.25% per year divided by 12 months in a year
nper is the number of years the payments would last which is 6 years multiplied by 12 months
pv is the initial amount of finance which is the net amount of $15,000
fv is the total amounts to be repaid which is unknown
=pmt(6.25%/12,6*12,-15000,0)=$ 250.37
The amount of monthly payment is $250.37
Answer:
E. factor income
Explanation:
Factor income is the return from the sale of factors of production, such as land, labor, and capital used in manufacturing and delivering the goods and services that businesses offer to consumers. Therefore, E is the correct answer.
The trade deficit is the difference between imports and export. So, "C" cannot be the choice.
The balance of international payments is the economic activity and transactions between the resident country and the rest of the world. So, it cannot be the answer.
Solution:
Next year, we have to find the dividend for a stock with super normal growth in this region. We believe the stock price, the growth rate of the dividends and the expected yield, but not the dividend. First of all, we need to remember that in year 3 the dividend is the FVIF dividend.
The dividend in Year 3 will be:
And the dividend in Year 4 will be the dividend in Year 3 times one plus the growth rate, or :
The portfolio is continuously growing in year 4, which is why it is split by the demanded return minus the growth rate in year 4 as the dividend in year 5.
The equation for the price of the stock in Year 4 is:
Now we can substitute the previous dividend in Year 4 into this equation as follows:
(1.25)3(1.18)(1.08) / (0.15 − 0.08) = 69.86
B. an increase in lost sales