Answer:
The amount to be paid for the contract today = $220,908.32
Explanation:
<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>
Present Value = A ×( 1 - (1+r)^(-n))/r
A- 22,500, r- rate of return - 8%, n -no of years 20 years
PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08
PV = 22,500 ×9.8181
PV = $220,908.32
The amount to be paid for the contract today = $220,908.32
I think its all the above except for they might be trying to trick you because at sixteen a guardian or parent has to sign aswell.
Answer:
False. Location is important for a business
Answer:
It will purchase 3 cans
total consumer surplus 0.70
Explanation:
the market price is 0.55
It will purchase up to three cans. the fourth can he is willing to purchase at 0.40 but the price is 0.55 so it won't trade for that one.
<u>consumer surplus:</u>
difference between the amounts he was willing to pay for each unit and the market price:
first can 0.95 - 0.55 = 0.40
second can 0.80 - 0.55 = 0.25
third can 0.60 - 0.55 = 0.05
total consumer surplus 0.70
Answer:
c. $57,100
Explanation:
The computation of the value of Jennifer’s Boutique to Sally is shown below:
= (Number of shares outstanding × market price per share) + (incremental value of the acquisition)
= 2,100 shares ×$26 + $2,500
= $54,600 + $2,500
= $57,100
We simply find out the market value and then added it to the incremental value of the acquisition
All other information which is given is not relevant. Hence, ignored it