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Genrish500 [490]
2 years ago
10

Your uncle offers you a choice of $115,0 in 10 years or $52,000 today, if the money is discounted at 9%, which should you do ose

? 2. If you invest $9,500 per period or the fotioning number of periods how much would you have? A. 10years at 10% B. 15years at 9%
Business
1 answer:
Zarrin [17]2 years ago
4 0

Answer:

1) we would choose the second offer i.e. $52,000 today

2) For A) 10 years at 10%

Future value = $151,405.53

For B) 15 years at 9%

Future value = $278,928.70

Explanation:

1) Future value = $115,000

Time, n = 10 years

Discount rate, r = 9% = 0.09

Now,

Present value of the money provided after 10 years

= Future Value ÷ [ ( 1 + r )ⁿ ]

= $115,000 ÷ [ ( 1 + 0.09 )¹⁰ ]

= $48,577.24

Since,

The Present value of $115,000 is less than the money to offered today i.e $52,000

Hence, we would choose the second offer i.e. $52,000 today

2) Payment per period = $9,500

Future value = Yearly Payment × [ { ( 1 + r ) ⁿ - 1 } ÷ r ]

Thus,

For A) 10 years at 10%

Future value = $9,500 × [ { ( 1 + 0.1 )¹⁰ - 1 } ÷ 0.1 ]

= $151,405.53

For B) 15 years at 9%

Future value = $9,500 × [ { ( 1 + 0.09 )¹⁵ - 1 } ÷ 0.09 ]

= $278,928.70

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Answer:

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Explanation:

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From an online financial calculator, the present value of the payments is:

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I/Y (Interest per year)  24

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Sum of all periodic payments = $12,400.00

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3 0
2 years ago
Flyaway Travel Company reported net income for 2021 in the amount of $90,000. During 2021, Flyaway declared and paid $2,125 in c
Jlenok [28]

Answer:

$1.85

Explanation:

Fyaway travels reported a net income of $90,000 for the year 2021

During 2021 they declared and paid a cash dividend of $2,125

They also paid $10,000 as cash dividend in common stock

Flyway has 40,000 shares outstanding

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4 0
3 years ago
Purchasing office supplies on account will: Multiple Choice Not change assets. Increase assets and decrease liabilities. Increas
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<u>Explanation:</u>

When anorganization purchases office supplies on account then it becomes essential to record such supplies as supplies on hand. Generally, in a business organization, the supllies on hand are used up within the span period of one year which means that they are to be recorded as current asset in the financial statement ( balance sheet). As no cash has been paid to merchandise, so it increases the liabilities also.

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Brainliest Answer!!! <br> Five reasons why travel and tourism industry is important in the U.S.
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Brings income and makes the economy better 
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Wichasha, an african country, exports barley and cotton worth $100 million to illema, a european country, and it imports sugarca
max2010maxim [7]

Answer: Balance of Trade

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In this case,  Wichasha's exports is higher than the total value of its imports so, it has a trade surplus or positive balance of trade.

7 0
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