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swat32
3 years ago
7

What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%? a. $17,690 b. $18,621

c. $19,601 d. $20,633 e. $16,806
Business
1 answer:
hammer [34]3 years ago
3 0

Answer:

PV= $20,632.89

Explanation:

Giving the following information:

Annual payments= $4,700

Interest rate= 4.5%

Number of years= 5

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {4,700*[(1.045^5) - 1]} / 0.045

FV= $25,712.34

Now, we can determine the present value:

PV= FV/(1+i)^n

PV= 25,712.34/(1.045^5)

PV= $20,632.89

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Answer:

C. Under-capitalized

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Tier 1 Capital /Risk-weighted assets = 90 million /2,017.6 million

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Anderson Company acquires Thompson Company by paying $30 million in cash. The fair value of the identifiable assets acquired is
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Answer:

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38-6= $32 million.

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Explanation:

5 0
3 years ago
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