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nasty-shy [4]
2 years ago
15

Plimpton has an annuity due that pays​ $800 per year for 11 years. What is the present value of the cash flows if they are disco

unted at an annual rate of​ 7.50%?
Business
1 answer:
nikdorinn [45]2 years ago
7 0

Answer:

6291.26$

Explanation:

In order to calculate the present value of the cash flow, we apply the formula for the present value of annuity due:

PVA=P+\frac{P}{r}(1-\frac{1}{(1+r)^{n-1}})

where:

P is the value of the periodic payment

r is the discout rate

n is the number of periods

In this problem, we have:

P=\$800 (periodic payment)

n = 11 y (number of years)

r=0.075 (discount rate is 7.5%)

Therefore, the present value of the cash flow is:

PVA=800+\frac{800}{0.075}(1-\frac{1}{(1+0.075)^{11-1}})=6291.26\$

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erastova [34]

Answer:

c. In-house sale

Explanation:

Based on the information provided within the question it can be said that the type of sale is known as an In-house sale. This term refers to a sale where the listing broker also represents the buyer in the sale that is taking place. Which is exactly what is happening in this situation since both Jim and Sally work for the same brokerage.

8 0
3 years ago
Homer notices that he gains more weight if he eats more doughnuts. Fill in the blanks to com the passage about the correlation b
Anika [276]

Answer:

Homer notices that he gains more weight if he eats more doughnuts. Fill in the blanks to com the passage about the correlation between weight and doughnuts.

There is a __positive_____correlation between the number of doughnuts Homer eats and his weight.  If Homer wants to lose weight, he should eat___less____ doughnuts.  If Homer graphed this relationship on a scatter plot, an increase on the y axis would lead to__an increase______ on the x axis.

Explanation:

According to the question, Homer's doughnut consumption and weight should be graphed so that an increase in the x-axis would lead to an increase in the y-axis.  The x-axis is the independent variable while the y-axis is always the dependent variable and not vice versa.  The number of doughnuts that Homer consumes should be plotted on the x-axis and the weight obtained on the y-axis because the weight depends on the number of doughnuts consumed.

3 0
3 years ago
Many catalog companies create special-run issues based on what customers have purchased in the past. For example, customers who
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Answer:

a.

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3 years ago
In an assembly operation at a furniture factory, six employees assembled an average of 900 standard dining chairs per 5-day week
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I guess the correct answer is 30 chairs/worker/day.

Divide the output of 900 chairs by the inputs of 30 worker-days.

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3 years ago
An entrepreneur needs to raise $20,000 for improvements to her factory. She plans to contribute 60 percent of this sum from her
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Answer:

$8,000

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8 0
3 years ago
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