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
tresset_1 [31]
3 years ago
10

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occur

s when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period? The interest rate is 5 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716). (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Business
1 answer:
o-na [289]3 years ago
3 0

Answer:

The future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period is $59,078.

Explanation:

We apply the formula to calculate future value of annuity to find the future value of 18-year annuity as at the beginning of year 18 ( because payment comes at the beginning of the year):

2,000/5% x (1.05^18 -1) = $56,264.77.

We further compound the future value of 18-year annuity as at the beginning of year 18 for one period to come up with the future value of this annuity as at the end of 18 year time:

56,264.77 x 1.05 = $59,078.

So, the answer is $59,078.

You might be interested in
A justification defense strategy is sometimes difficult to carry out because it:
Tems11 [23]

A justification defense strategy is sometimes difficult to carry out because it varies in wide interpretations. The right to self-defense granted by law to the private citizen is strictly limited. Use of force that goes beyond what is necessary to dispel the immediate threat of violence is known as excessive self-defense. 

8 0
3 years ago
Which of the following is a potentional benefit of joining a business-related student organization?
olchik [2.2K]
I would say C is the correct answer.
6 0
2 years ago
Taco Casa is considering installing touch screen terminals for patrons to place their food orders. A terminal can typically acco
snow_lady [41]

Answer:

$0.8

Explanation:

Data provided in the question:

Number of orders each hour = 15

Number of orders processed each hour = 20

Wages = $7.50/hr

Taxes = $4.50/hr

Now,

Total cost per hour = $7.50 + $4.50 = $12

Therefore,

By installing touch screen, Taco Casa can save $12 per hour

but touch screen can accommodate only 15 orders

Thus,

Per order opportunity cost of a touch screen

= Total amount saved ÷ Number of Orders accommodated by touch screen

= $12 ÷ 15

= $0.8

6 0
3 years ago
Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.) Indicate whether the variance is
ANTONII [103]

Answer:

The dollar variance is -$100.

The percent variance is -20%.

Since the actual income is less than the budgeted income, the variance is unfavorable (U).

We calculate Dollar Variance as : Actual Amount - Budgeted Income

Dollar Variance = 400 - 500 = 100

Next, we calculate percent variance as :

Percent variance = \frac{Dollar Variance}{Budgeted Income} *100

Plugging the values in we get,

Percent Variance = \frac{-100}{500} *100

Percent Variance = -20%



6 0
3 years ago
Karen chooses to go to university fulltime rather than to work. Karen:_______ A. is not part of the labor force. B. is part of t
Svetlanka [38]

Answer:

The answer would be A

Explanation:

It is not part of the labor force because it is not working in any way since it is studying full time, if she worked part time if it would be within the percentage of people who work.

6 0
3 years ago
Other questions:
  • In order to make sure it is possible to clean the floors under shelving units in food establishments, the shelves must be at lea
    8·2 answers
  • If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then p
    5·1 answer
  • In July 2009, Hungary successfully issued 1 billion euros in bonds. The transaction was managed by Citigroup. Who is the issuer
    15·1 answer
  • Yohann lost his job due to the recession. He is still financially secure due to investments he made several years ago. What kind
    6·2 answers
  • What is the maker movement? (A) Systems used to create the digital designs and then manufacture the products.(B) Serialization o
    5·1 answer
  • If Penny bought a stock for $80 dollars and could sell it 15 years later for 4 times what she originally paid, what is Penny’s r
    12·1 answer
  • The minimum salary for a running back is $1.35 million per year. One of the Whalers' running backs was hurt during the last game
    15·1 answer
  • To promote economic growth countries would most likely act so that inflation
    15·1 answer
  • Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it.
    15·1 answer
  • Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual in
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!