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Cloud [144]
3 years ago
14

What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate c

alculations and round your final answer to 2 decimal places.)
Business
1 answer:
MAXImum [283]3 years ago
6 0

Answer:

$3,593.44

Explanation:

The present value (P) of an annuity payment (A) at an annual rate 'r', compounded annually over of period of 't' years, is given by:

P=A*\frac{1-(1+r)^{-t}}{r}

If payments are $900 each at an 8 percent rate for five years, the present value is:

P=900*\frac{1-(1+0.08)^{-5}}{0.08}\\P=\$3,593.44

The present value of the annuity payment is $3,593.44

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The Geostar Company, leading manufacturer of wireless communication devices, is considering three cost-reduction proposals in ts
S_A_V [24]

Answer: Alternative 3 will be selected.

Explanation:

The system that should be selected is the alternative that is better than the other alternatives by being higher than MARR if selected.

First compare A1 to A0

The rate of return here is 18% which is higher than the MARR of 15% so Alternative 1 should be chosen over A0 which is to do nothing.

Compare A1 to A2

If A2 is chosen over A1, the incremental return is 10% which is less than the MARR of 15% so A2 should not be chosen over A1. A1 should instead be chosen over A2.

Compare A1 to A3

If A3 is chosen over A1 then the incremental return would be 18%. This is higher than the MARR of 15% so Alternative 3 should be chosen over Alternative 1.

Alternative 3 should be chosen over A1 which should be chosen over A2 and A0.

A3 will therefore be selected.

7 0
3 years ago
Unlike tangible goods,virtually all services are susceptible to inconsistency and variations in quality.Why is this so?A) Becaus
expeople1 [14]

Answer:

A) Because services depend on people for their delivery.

Explanation:

Given that the same or similar type of services are or can be carried out by various personnel, and the level of quality of the rendered services is dependent on the skills and professionalism of the person who rendered such services.

Hence, Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality, because services depend on people for their delivery.

Therefore, the right answer is Option A. the

8 0
3 years ago
Your savings account is currently worth $1,200. The account pays 5 percent interest compounded annually. How much will your acco
Flura [38]

Answer:

$2,010  

Explanation:

The future value of the savings account in 6 years can be computed using the below future value formula:

FV=PV*(1+r)^n

FV=unknown future amount

PV=current worth of the savings account=$1,200

r=annual interest rate=5%

n=number of years envisaged=6

FV=$1,500*(1+5%)^6

FV=$1,500*(1.05)^6

FV=$1,500*1.3400956  

FV=$2,010  

7 0
3 years ago
The duel between Aaron Burr and Alexander Hamilton was the result of:
earnstyle [38]

Answer:

Option D: Burr's belief that Hamilton had slandered him.

Explanation:

The duel stemmed from a history of animosity between both men over the years. The existing personal animosity and personal bitterness between both individuals came to a head in the run-up to the governorship election in New-York in 1804.

The Albany Registrar published a letter sent from Charles Cooper to senator Philip Schuyler which referenced a statement made by General Hamilton describing Colonel Burr as being a dangerous and despicable human being incapable of running a government.

The ensuing duel was as a result of this defamation.

7 0
3 years ago
Danita rescues dogs from her local animal shelter. when danita's income rises by 7 percent, her quantity demanded of dog biscuit
Anna007 [38]

Answer:

The income elasticity of demand for dog biscuits is Option D: positive, and dog biscuits are a normal good.

Explanation:

'Income elasticity of demand' refers to the reaction of the demand in quantity for a good or service to that of change in income.  

'Normal goods' are the goods that are related positively with income whereas 'inferior goods' are those goods which are related negatively with income. As the income increases, there is a rise in demand for the dog biscuits. This means the dog biscuits are normal goods. Income elasticity for demand is positive for Danita as it is because of the rise in income. Hence, Option D is the most appropriate.

6 0
3 years ago
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