Answer:
Present Value= $918,787.32
Explanation:
Giving the following information:
You just inherited a trust that will pay you $100,000 per year in perpetuity.
The first payment will not occur for exactly four more years.
Interest rate= 8%
First, we need to determine the value of the perpetual annuity in 4 years. Then, we calculate the value today.
Present value in four years:
PV= Cf/i
Cf= cash flow
PV= 100,000/0.08= $1,250,000
Now, using the following formula, we calculate the value today.
PV= FV/(1+i)^n
PV= 1,250,000/1.08^4
PV= $918,787.32
Answer:
Correct option is A.
Explanation:
Laurie's engagement with Pluto automobiles best illustrates <u>brand loyalty.</u>
Brand loyalty is defined as positive feelings towards a brand and dedication to purchase the same product or service repeatedly now and in the future from the same brand, regardless of a competitor's actions or changes in the environment.
Same is the case with Laurie, even she had a bad experience at the dealership even then she decide to buy a Pluto Y20 for her daughter.
<span>The function of interest is to make lending money worthwhile and profitable for the lender. The government is monitoring the lender and they are not allowed to give a very high interest rate. Credits and loans are not socially acceptable in the society since this only profitable to the lender.</span>
The answer is 0.75.
When taking the compliment, remember it is always of the form :
<u>1 - p'(x) or 1 - p(x)</u>
Hence,