Answer:
$245.09
Explanation:
A service contract for a video projection system costs $90 a year. You expect to use the system for three years.
Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:
PV
Ordinary Annuity
=C×[ ((1−(1+i) ^−n
) / i ]
where
n = number of years = 3
i = interest rate = 5%
Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09
If you wanted to add up the total economic assets owned by a person or family minus all debts, you would be measuring wealth. Wealth is the total value of all valuable assets owned by an individual, community, business, or country. Wealth is calculated by deducting all debts from the total market value of all physical and intangible assets owned.
Wealth is the total value of all valuable assets owned by an individual, community, business, or country. Wealth is calculated by deducting all debts from the total market value of all physical and intangible assets owned. Wealth is essentially the accumulation of scarce resources.
To learn more about Wealth, click here.
brainly.com/question/17011735
#SPJ4
Answer:
Price of stock- $26
Explanation:
<em>Using te dividend valuation model, the price of a stock is the present value of the future cash flows expected from the stock discounted at the required rate of return.</em>
Where a stock is expected to pay dividend growing at a specific rate, the price of the stock can be dertermined as follows:
Price = D(1+g)/(ke-g)
D -dividend payable now,
Ke-required rate of return,
g - growth rate in dividend
So we can work out the price as follows:
Price = 1.25( 1+0.04)/(0.09-0.04)
= $26
Price =$26
Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
