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monitta
3 years ago
14

Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first da

y of each year for 15 years. How much does the second annuity pay each year for 15 years if it pays at the end of each year
Business
1 answer:
nignag [31]3 years ago
5 0

Answer:

$2681.30 approx.

Explanation:

The first annuity is case of annuity due

For the first annuity, $2500 + 2500 × cumulative present value factor at 7.25% for 14 years

= $2500 + 8.6158 × 2500

= $24040 approx

The second annuity is the case of deferred annuity wherein payments are made at the end of the year.

Payment amount of second annuity = Present Value of first annuity ÷ cumulative present value annuity factor at 7.25% for 15 years

This will be equal to 24,040/8.9658 = $2681.30 approx.

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g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP,
satela [25.4K]

Expansionary monetary policy shifts AD to the right.

<h3>What is Expansionary monetary policy?</h3>
  • Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth.
  • During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.
<h3>Impacts on GDP, unemployment, and inflation by the increase of supply of money:</h3>
  • The Federal Reserve begins to grow the money supply at an increasing rate.
  • The impact on GDP, unemployment, and inflation would be significant.
  • AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

brainly.com/question/18939014

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8 0
2 years ago
If a concession stand received $5,550 in gameday sales, and its profit for the event was $3,330, what were the expenses?
frez [133]

Answer: $1,110 .

Explanation:

Given : Amount received by concession stand in gameday sales = $5,550

i.e. Gross income = $5,550

Profit  for the event = $3,330

i.e. Net income =$3,330

According to the Net income formula ,

Gross income - expenses = Net income

⇒ Expenses = Gross income - Net income

⇒ Expenses = $5,550- $3,330

⇒ Expenses = $1,110

Thus , the expenses were $1,110 .

3 0
3 years ago
I need nitro gold. plz, donate to nitro type user DeckertheBEAST. don't answer for the points. GUYS I'M IN NEED. Thanks for thos
katrin2010 [14]

Answer:

whats that? ._.

Explanation:

8 0
2 years ago
Read 2 more answers
Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government expenditures are $2 billio
masha68 [24]

Answer:

exports are $15 billion, and imports are $10.5 billion

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption + Investment spending + Government Spending + Net Export

14 billion = 4.5 billion + $3 billion + $2 billion + Net Export

Net Export = $4.5 billion

Net Export = export - import

Net Export is positive so it indicates that exports is greater than imports.

Going through the options, it is only option d that is equal to 4.5 and the export is greater than the import.

I hope my answer helps you

7 0
3 years ago
Jane Doe, who has substantial personal wealth and income, is considering the possibility of starting a new business in the chemi
Kaylis [27]

Answer: The correct answer is "S corporation, to gain some tax advantages and also to obtain limited liability. ".

Explanation: S corporation is the legal form of business organization that probably adapts best to her needs because it would be a great advantage to have tax benefits and in turn limit the liability only to the capital contributed, this means that to meet your obligations you only respond with capital from the company and not with Jane's own assets.

7 0
3 years ago
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