1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
scoundrel [369]
3 years ago
13

Compute the present value of $1,150 paid in three years using the following discount rates: 6 percent in the first year, 7 perce

nt in the second year, and 8 percent in the third year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
jekas [21]3 years ago
5 0

Answer:

The present value is $938.82

Explanation:

Giving the following information:

Compute the present value of $1,150 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year.

We need to discount the final value of $1,150 for each discount rate starting in year 3.

PV= FV/(1+i)^n

Year 3= 1,150/1.08= 1,064.81

Year 2= 1,064.81/1.07= 995.15

Year 1= 995.15/1.06= 938.82

The present value is $938.82

You might be interested in
Which of the following is NOT a strategy stores use to discourage shoplifting?
Crazy boy [7]
The answer is frequent sales:
This is because all the other answers would make the shop lifter feel discouraged as there is a lot of security, when more sales would most likely have no affect
4 0
3 years ago
If the Ricardian equivalence theorem LOADING... is not​ relevant, then an​ income-tax-rate cut A. will result in a multiple time
LenKa [72]

Answer:

The correct answer is D. will result in a multiple times higher decrease in equilibrium real GDP in the short​ run; however, a​ tax-rate reduction will increase the​ automatic-stabilizer properties of the tax​ system, so equilibrium real GDP would be less stable.

Explanation:

Ricardian Equivalence is an economic theory that suggests that when a government increases expenses financed with debt to try to stimulate demand, demand does not really undergo any change.

This is because increases in the public deficit will lead to higher taxes in the future. To keep their consumption pattern stable, taxpayers will reduce consumption and increase their savings in order to offset the cost of this future tax increase.

If taxpayers reduce their consumption and increase their savings by the same amount as the debt to be returned by the government, there is no effect on aggregate demand.

The fundamental concept of Ricardian equivalence is that it does not matter which method the government chooses to increase spending, whether by issuing public debt or through taxes (applying an expansive fiscal policy), the result will be the same and demand will remain unchanged.

6 0
3 years ago
The interest cost component of NPPBC is the_______________.
san4es73 [151]

Answer: D

Explanation: Interest cost reflects the change in the APBO throughout the period which arise simply from a passage in time.

It is usually equal to the APBO at the start of the period times, the supposed discount rate which is used to regulate present value of future cash outflows currently expected or needed to satisfy the commitment or duty.

7 0
3 years ago
Read 2 more answers
Scenario: Money Creation The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in
disa [49]
Your answer to this question is increased by $1000
8 0
2 years ago
Dee wants to give Fleesum's employees more freedom to schedule when they begin and end their workdays. Her plan still requires e
77julia77 [94]

Answer:

B. flextime plan.

Explanation:

A flextime plan is a schedule that allows employees to decide their start and finish hour which is what it is said in the case as Dee give her employees the option to choose when to begin and end their days. Also, this plan requires employees to always be at work at certain hours as it is indicated. This means that it is mandatory for employees to be at their job in certain times but out of that they can choose their schedule.

8 0
3 years ago
Other questions:
  • You want to show the stock price of a company over the last 6 months. What type of chart would be best for this purpose?
    9·1 answer
  • Puppy Woes. Sam promised to sell Linda a Welsh Corgi puppy for $300 but backed out of the deal. Linda sued Sam in state court fo
    14·2 answers
  • On December 31, 2017, Coolwear, Inc. had a balance in its prepaid insurance account of $48,400. During 2018, $86,000 was paid fo
    14·1 answer
  • The Baldrige Award aims to: (I) publicize successful quality programs. (II) recognize quality achievements of U.S. companies. (I
    14·1 answer
  • Larger financial institutions now offer a wide range of services under one roof, from banking to stock trading. These institutio
    14·1 answer
  • Ralone Corp. manufactures printers. When it launched a new line of laser printers, it also introduced laser toners. None of the
    9·1 answer
  • If a frozen pizza plant is the cost object, classify each of the following costs as direct or indirect, respectively: property i
    15·1 answer
  • Palmona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for th
    11·1 answer
  • During March 2020, Garner Tool & Die Company worked on four jobs. A review of the direct labour costs reveals the following
    6·1 answer
  • Soul is a music genre that evolved from the songs made out of loneliness by​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!