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
denpristay [2]
3 years ago
10

Al Darby wants to withdraw $20900 (including principal) from an investment fund at the end of each year for five years. How shou

ld he compute his required initial investment at the beginning of the first year if the fund earns 11% compounded annually
Business
1 answer:
labwork [276]3 years ago
4 0

Answer:

$20,900 times the present value of a 5-year, 11% ordinary annuity of 1’

Explanation:

For computing the required initial investment we considered the following information

Withdrawn amount = $20,900

Time period = 5 years

Rate of interest = 11%

in mathematically,

= Withdrawn amount  × Present  value of a 5-year, 11% ordinary annuity of 1’

By this formula we can get the required initial investment

You might be interested in
Which of these roles is the highest ranking person in a company?
Rudiy27
What are the choices, if any?
In most companies, the highest corporate titles would be CEO, COO, Vice President, CFO and/or Manager.
5 0
3 years ago
Read 2 more answers
(tco 7) which access control method is characterized by the information owner being responsible for assigning privileges to appr
Tems11 [23]
<span>Web applications need access controls to allow users (with varying privileges) to use the application.They also need administrators to manage the applications access control rules and the granting of permissions or entitlements to users and other entities. Various access control design methodologies are available. To choose the most appropriate one, a risk assessment needs to be performed to identify threats and vulnerabilities specific to your application, so that the proper access control methodology is appropriate for your application.</span>
3 0
3 years ago
1. To gain profit and earn a living.​
liraira [26]

Answer:

what is your question though? I don't understand

8 0
3 years ago
Read 2 more answers
Jamestown's location made it a poor choice for settlement because it __________.
Mashcka [7]
Was horrible for growing crops if I remember correctly
3 0
2 years ago
Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow a
PilotLPTM [1.2K]

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

7 0
2 years ago
Other questions:
  • What is true about Title VII of the Civil Rights Act of 1964?
    15·1 answer
  • All managers are by necessity leaders. <br> O True <br> O False
    12·2 answers
  • Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a
    9·1 answer
  • The ledger of Claudell Company includes the following unadjusted normal balances: Prepaid Rent $1,000, Services Revenue $55,600,
    15·1 answer
  • Suppose that the demand for my new book, Spatulas From Around the World, is such that the demand curve lies everywhere below the
    8·1 answer
  • How do you use morningstar. thx:)
    14·1 answer
  • You will earn the YTM on a bond if you hold the bond until maturity and if interest rates don't change. If you actually sell the
    10·1 answer
  • On arriving at the elegant Chez Moulin for a catered dinner, the guests discover that a large plate, called a _______, will rema
    5·1 answer
  • In a process-costing system, the cost of abnormal spoilage should be A. Included in the cost of units transferred out. B. Prorat
    8·1 answer
  • The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory system.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!