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
Genrish500 [490]
3 years ago
12

British government 3.3% perpetuities pay £3.3 interest at the end of each year forever. Another bond, 1.8% perpetuities, pays £1

.80 a year forever.
a. What is the value of 3.3% perpetuities if the long-term interest rate is 5.3%? (Round your answer to 2 decimal places.) Perpetuity value £
b. What is the value of 1.80% perpetuities? (Round your answer to 2 decimal places.) Perpetuity value £
Business
1 answer:
Yakvenalex [24]3 years ago
6 0

Answer:

Explanation:

Perpetuity is a time value of money concept where cashflows occur indefinitely; the recurring payments go on forever.

The formula for finding the present value of these perpetually recurring cashflows is as follows;

PV = CF/ r

whereby,

CF = Cashflow = £3.3

r = rate = 3.3% or 0.033 as a decimal

so PV = 3.3 / 0.033

PV = £100.00

If the rate is 1.80% or 0.018 and recurring CF is £1.80, then PV would be;

PV = 1.80 / 0.018

PV = £100.00

You might be interested in
Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the foll
nasty-shy [4]

Answer:A. Cost is greater than net realisable value(NRV)

Explanation:

An inventory should not be higher than the price its sale or use and this requires the comparison of inventory cost to it's ( NRV) and whichever is lower will be used as cost of inventory

NRV= Sales price less cost to completion and less estimated cost necessary to make the sales.

4 0
3 years ago
the benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is call
Snezhnost [94]

The benefit enjoyed by a third party that is not directly involved in the production or consumption of a good or service is called externality.

What does the term externality mean?

Externalities are situations when the production or consumption of products and services has an impact on other people that results in costs or advantages that are not accounted for in the pricing charged for the goods and services being offered.

What impact do externalities have on the economy?

When people, households, and businesses fail to internalise the indirect costs or advantages of their economic interactions, externalities pose serious issues for economic policy. Inefficient market outcomes are the result of the resulting wedges between social and private costs or profits.

To know more about externality, click here- brainly.com/question/477170

#SPJ4

8 0
10 months ago
chegg amazon.com inc. is one of the world’s leading e-commerce companies, with over $386 billion in revenues for the fiscal year
MariettaO [177]

With nearly $386 billion in revenues for the fiscal year ending December 31, 2020, Amazon.com.inc. is one of the top e-commerce businesses in the world. Amazon's cost of goods sold for the fiscal year that concluded on December 31, 2020 was $233,307 million.

<h3>What is Amazon.com, Inc.?</h3>

A global American technology business, Amazon.com, Inc., specializes in e-commerce, cloud computing, digital streaming, and artificial intelligence. One of the most valuable brands in the world, it has been called "one of the most significant economic and cultural forces in the globe." Along with Alphabet, Apple, Microsoft, and Meta, it is one of the Big Five American technological firms.

On July 5, 1994, Jeff Bezos launched Amazon from his garage in Bellevue, Washington. It has numerous subsidiaries, including Kuiper Systems (satellite Internet), Amazon Lab126, Zoox (autonomous vehicles), and Amazon Web Services (cloud computing) (computer hardware R&D).

To learn more about amazon visit:

brainly.com/question/28235881

#SPJ4

5 0
1 year ago
Q. 2:- Choose the correct answer :-
ikadub [295]

Answer:

1) Muhammad (S.A.W)

2) Al- Quran

3) A muslim

5 0
2 years ago
1. The two basic ways to finance a business are equity financing and
Deffense [45]

Answer:

B and C

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • Garnett Co. expects to purchase $180,000 of materials in July and $210,000 of materials in August. Three-fourths of all purchase
    10·1 answer
  • Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) Record liability, (b) D
    11·1 answer
  • Which of the following statements about renting &amp; owning is correct?
    13·1 answer
  • In our aggregate expenditure model we assume that:
    15·1 answer
  • Kinney Company purchased a truck for $66,000. The company expected the truck to last four years or 100,000 miles, with an estima
    9·1 answer
  • Consider the following: Cash in Bank - checking account of $18, 500 Cash on hand of $500. Post dated checks received totaling $3
    14·1 answer
  • A barter economy is different from a money economy in that a barter economy
    12·1 answer
  • Which of the following is likely to happen if employees think that their organization is
    12·1 answer
  • Which of these will cause aggregate demand to shift to the right?
    13·1 answer
  • Suppose 10 new hair salons open in this city. Would this have an effect on the supply and / or demand curves? Explain
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!