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3 years ago

You expect to receive a payment of $600 one year from now. Answer the following questions and show your calculations:

Business

1 answer:

m_a_m_a [10]3 years ago

4 0

Answer:

Instructions are below.

Explanation:

Giving the following information:

You expect to receive a payment of $600 one year from now.

A) Discount rate= 6%

We need to use the following formula:

PV= FV/(1+i)^n

PV= 600 / (1.06)= $566.04

B) Discount rate= 7%

PV= 600 / (1.07)= $560.75

C) The future value of a certain cash flow declines when the interest rate (discount rate) increases or "n" (time) increases.

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Lake City enacts an ordinance that bans the distribu-tion of all printed materials on city streets. Mackensie opposes the city's

loris [4]

Answer:

c. unconstitutional under the First Amendment.

Explanation:

Under the first amendment the act of banning such printed materials is unconstitutional. As it is not good for people in the country to witness such things.

As printed material includes books, magazines, and other things which enhance the knowledge level of different people.

Therefore, banning printed material will make the country people short of knowledgeable resources.

Therefore, the court will announce it unconstitutional.

4 0

3 years ago

A young couple is planning for the education of their two children. They plan to invest the same amount of money at the end of e

laila [671]

Answer:

The couple must save $ 6,598 each year

Explanation:

Calculating the payment amount:

Cost per year = $25,000 per each child

Cost for 4 years = $25,000 × 4 = $100,000

For the oldest child, the college will begin in 16 years and the second child the college will begin in 18 years.

Calculating the amount to be deposited each year for the oldest child.

Using Microsoft Excel PMT function

Rate = 8%

N = 16

PV = 0

FV = -100000

= $3,298

Therefore, they must deposit $3,298 each year for their oldest child.

Calculating the amount to be deposited each year for the second child:

Using Microsoft Excel PMT function

Rate = 8%

N = 18

PV = 0

FV = -100000

= $2,670

Therefore, they must deposit $2,670 each year for their second child.

Total sum to be saved per year = $3,298 + $2,670 = $6,598

6 0

3 years ago

A company received 500 applications for a specific position.30 were given an assignment test. Only 15 were invited to an intervi

morpeh [17]

I think c might be wrong tho

4 0

3 years ago

A firm is considering two projects. Project Peso requires an initial investment of $100,000. The Internal Rate of Return for Pro

Fofino [41]

Answer:

to accept both the projects i.e. Project Peso and Project Quasi

Explanation:

As we can see in the given case, that the weighted average cost of capital on the projects is 9% while on the other hand, Perso and Quasi both have the internal rate of return 10.6% and 12.6% i.e. above 9% so based on this, the decision that should firm make is to accept both the projects i.e. Project Peso and Project Quasi

The same would be relevant

6 0

3 years ago

You are scheduled to receive annual payments of $11,100 for each of the next 24 years. Your discount rate is 10 percent. What is

Lisa [10]

Answer:

The difference in the present value is $988.32.

Explanation:

The difference in the present value can be calculated using the following 3 steps:

Step 1: Calculation of the present value if you receive these payments at the beginning of each year

This can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVA = Present value if you receive these payments at the beginning of each year = ?

P = Annual payments = $11,100

r = interest rate = 10%, or 0.10

n = number of years = 24

Substitute the values into equation (1), we have:

PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)

PVA = $10,871.54

Step 2: Calculation of the present value if you receive these payments at the end of each year

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where:

PVO = Present value if you receive these payments at the end of each year = ?

Other values are as defined in Step 1 above.

Substitute the values into equation (2), we have:

PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)

PVO = $9,883.22

Step 3: Calculation of the difference in the present value

This can be calculated as follows:

Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32

3 0

3 years ago