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maria [59]
4 years ago
5

If the interest rate is 8%, what is the 4-year discount factor? What is the 4-year annuity factor? What is the relationship betw

een these two numbers? Explain.
Business
1 answer:
Strike441 [17]4 years ago
4 0

Answer:

Discount factor will be 0.735

And annuity factor will be 3.312

Explanation:

We have given rate of interest r = 8 %

Time period n = 4 year

We have to calculate discount factor

Discount factor is equal to =\frac{1}{(1+r)^n}=\frac{1}{(1+0.08)^4}=\frac{1}{1.08^4}=0.735

So discount factor will be equal to 0.735

Annuity factor is equal to (1-\frac{\frac{1}{(1+r)^n}}{r})

So annuity factor will be equal to (1-\frac{\frac{1}{(1+r)^n}}{r})=(1-\frac{\frac{1}{(1+0.08)^4}}{0.08})=3.312

So annuity factor will be 3.312

Annuity factor is determined for a progression of equivalent installment/receipt for indicated time frame.  

In any case, discounting factor  is determined distinctly for discover the present estimation of sum which will be put resources into year 4.

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Daniel is very autocratic, has strict rules and policies. In the short run, this management style can achieve high productive results, but in the long run the low morale of the workers will end up hurting their performance. Daniel believes that his employees are just a means to an end, and that their needs are secondary and not important.

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I hope that helped
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Canada goes to considerable lengths to protect its television program and magazine producers from U.S. competitors. The United S
Anettt [7]

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D. All the Above

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This is true since although a country has a competitive advantage in all industries, concentrating its labor and capital in the production of the good or service in which it has the greatest competitive advantage will allow a higher level of production in that sole good/service than if he divided his resources into the production of other goods and services.

C. Lead to international trade and overall gains for the nations involved.

This point, despite being true, is debatable. In theory, international trade allows to reach greater levels of wealth to the countries involved by being able to exchange the goods in which they have competitive advantage for others that if they were produced in the country they would consume part of their resources by not having such high productivity as if it will trade with a country that does have the capacity to produce it.

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Therefore, based on the above scenario, the correct option is C.

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