Michael will attend college in 5 years. He anticipates he will need $19,000 to pay for the first year. He currently has $6,400 i
2 answers:
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Answer:
The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
The perpetuities can becalculate as follow
C/rate = Perpetuities
the reasoning behind this formula:
If we calculate limit whe ntime is infite,
because at more time 1 + r gets closer and closer to 0
we get on the dividend
1 - 0
So we have C x 1/i = C/i
Next part would be why the first cash flow is more relevant than the subsequent cash flow:
Here if time increases, then the divisor get closer to ∞ so we have
P ( a constant) /∞ = 0
So the first cashflow is more relevant than the more distant cash flow
Answer:
a. d. yes, because the plot is roughly a diagonal straight line
b. b the distribution is skewed to the right.
Explanation:
Note: Find attach the plot as picture
a. If the distribution of the song length is roughly Normal, the normal probability plot should be roughly a diagonal straight line. But the given normal probability plot is far from straight. So, the distribution of song lenghts is not normal
b. The distribution of song lenghts is skewed to the higher values, that is right skewed because the normal probability plot is curved and of inverted C shape
