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77julia77 [94]
2 years ago
14

You've lost a lawsuit that requires you to pay $1,500 per month for 120 months starting next month. How much would you have to i

nvest today to exactly pay for the lawsuit ,if your investments earn 3.00% APR (compounded monthly)? Calculate your answer to the nearest dollar. Write only the number with no dollar sign or comma (e.g., 3711) _____ .
Business
1 answer:
Lady bird [3.3K]2 years ago
6 0

Answer:

PV = $155,343

Explanation:

This question requires application of PV of annuity, according to which:

PV = p [1-(1+r)^-n/r]

P= Periodic Payment

r = rate of period

n = number of periods

r = 3%/12 = 0.25% (monthly), n = 120, P = $1500

PV = 1500 * [\frac{1 - (1 + 0.0025)^{-120}}{0.0025}]

PV = 1500 * 103.5618

PV = $155,343

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Tomtit [17]

Answer:

hope it's help you ok have a good day

4 0
2 years ago
Bank capital can best be described as a. the location of most of the major banks of a country. b. the accumulated amount of rese
LenKa [72]

Answer:

c. funds contributed by shareholder purchasers of a bank's stock plus the accumulated retained earnings.

4 0
3 years ago
At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites
Kobotan [32]

Answer:

False

  • At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with <u>DECENTRALIZED</u> planning , using planning experts to help store managers develop their own plans.

Explanation:

In a corporation, decentralized planning means that some planning functions and decision making processes are delegated to lower level managers.

In this case, MultiMarkets' upper management is delegating planning functions to local store managers as a way to respond to an increase in online retailing.

4 0
3 years ago
When the Fed buys bonds from financial institutions, new money moves directly Group of answer choices
Dimas [21]

Answer:

out of the loanable funds market.

Explanation:

In the case when the Fed purchased bonds from a financial institution so the new money shift directly out of the funds market i.e. lonable because the bank reserve would increased also they begins lending at lesser rate of interest

Therefore as per the given situation, the fourth option is correct

And, the same is relevant

8 0
2 years ago
Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will recei
mamaluj [8]

Answer:

The last option is the answer -$141.80

Explanation:

we will use the present value formula for Trish she gets paid every first day of the month therefore she will receive an immediate payment of cash flow which will be added to the present value of future periodic value. Therefore we will find the difference between present values for Trish and Josh which have the same amounts which they'll receive per month.

Given: Trish and josh both receive $450 per month therefore that will be C the monthly future payment that will be received.

They will receive these amounts in a course period of Four years so that will be n = 4 x12=48  because we know that they will receive these payments every month or on a monthly basis for four years. which n represent periodic payments.

i which is the discount rate of 9.5%/12 as we know they will recieve these amounts monthly.

Therefore using the following formulas for present value annuity:

Pv = C[(1-(1+i)^-n)/i] and Pv= C[(1-(1+i)^-n)/i](1+i) then get the difference between these two present values for Trish and Josh.

therefore we will substitute the above values on the above mentioned formula to get the difference:

Pv= 450[(1-(1+9.5%/12)^-48)/(9.5%/12)]  - 450[(1-(1+9.5%/12)^-48)/(9.5%/12)](1+9.5%/12)    then we compute and get

Pv= $17911.77614 - $18053.5777

Pv = -$141.80 is the difference between the two sets of present values as one has an immediate payment and one doesn't have it.

3 0
3 years ago
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