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djyliett [7]
3 years ago
11

What is the future value of a $500 annuity payment over eight years if interest rates are 14 per 14 percent

Business
1 answer:
Charra [1.4K]3 years ago
6 0

Answer:

FV= $6,616.38

Explanation:

Giving the following information:

Annual cash flow= $500

Number of periods (n)= 8

Interest rate= 14%

<u>To calculate the future value, we need to use the following formula:</u>

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

A= annual cash flow

FV= {500*[(1.14^8) - 1]} / 0.14

FV= $6,616.38

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What the heck uhmmmm
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2 years ago
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Suppose that a university decides to spend $1 million to upgrade personal computers and scientific equipment for faculty rather
Vladimir [108]

Answer:

<u>Opportunity cost </u>

Explanation:

Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $  million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>

<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>  

Formula of Opportunity cost is :

<u>Opportunity cost</u>    =  Total Revenue - Economic Profit

                                    Or

<u>Opportunity cost </u>  = What one sacrifice / What one gain

In Opportunity cost we chose one thing or option over the cost of another thing or option. Opportunity cost places a important role in economic theory .

As it tell us that people can choose only one thing not the both things at the sane time.

3 0
3 years ago
1. All of the factors below create a change in demand for alcohol except: a. Change in cigarette prices given that cigarettes an
Gnesinka [82]

Answer:

d. Rise in price of alcohol

Explanation:

Change in Quantity demanded occurs due to change in Price. Change in Demand happens due to factors other than price - Income, Substitute & Complementary good's price, Taste.

Change in alcohol demand - due to substitute Cigarette price change , Change [Decrease] in alcohol demand - due to change in taste based on anti drinking sentiments, higher risk of alcohol liver cirrhosis , Change [Increase] in alcohol demand - due to change [rise] in Income : These all are due to factors other than price & hence are 'Change in Demand'

Rise in price of Alcohol leads to 'Change [Expansion] in Quantity Demanded' due to price change [rise] .

5 0
2 years ago
Hunter &amp; Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost charact
Yuri [45]

Answer:

a. 7,900

b. 10,100

Explanation:

As for the provided information,

We know at break even point taxes shall be = 0 as there are no profits and no losses.

a. At break even: = \frac{Fixed\ Cost}{Contribution}

Fixed Cost = $308,100

Contribution per unit = Selling price - Variable cost = $79 - $40 = $39

Therefore, break even units = \frac{308,100}{39} = 7,900 smokers

b. In case the company wants a profit of $51,480 after tax @ 40% then,

Earnings before taxes = \frac{51,480}{1 - 0.4} = $85,800

Therefore, number of units = \frac{Fixed\ Cost + Profit\ before\ tax}{Contribution\ per\ unit}

= \frac{308,100 + 85,800}{39} = 10,100

5 0
2 years ago
Hugo Inc., a calendar year taxpayer, sold two operating assets this year. The first sale generated a $38,700 Section 1231 gain,
Alex17521 [72]

Answer:

$20,700 ordinary loss

Explanation:

Based on the information given if the first Operating assets generated a gain of the amount of $38,700 while the second assets generated a loss of the amount of $59,400 after been sold out which indicate or means that Hugo should recognize the amount of $20,700 ORDINARY LOSS which is calculated as :

Ordinary loss =-$59,400+$38,700

Ordinary loss =-$20,700

Therefore As a result of these sales, Hugo should recognize:$20,700 ORDINARY LOSS

6 0
2 years ago
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