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Art [367]
3 years ago
6

A bonus package pays an employee $800 at the end of the first year, $1800 at the end of the second year, $2800 at the end of the

third year, and so on...continuing to increase by $1000 every year for the first nine (9) years of employment. What is the approximate present value today of the bonus package at 6% interest?
Business
2 answers:
makvit [3.9K]3 years ago
5 0

Answer:

The present value for this bonus is $30,018.13

Explanation:

pv         n  i FV

754.72 1 6% 800

1601.99 2  1800

2350.93 3  2800

3009.96 4  3800

3586.84 5  4800

4088.77 6  5800

4522.39 7  6800

4893.82 8  7800

5208.71 9  8800

<u>30018.13 </u>  

ser-zykov [4K]3 years ago
3 0

Answer:$30,057.46

Explanation:

First year=$800

Second year=$1800

Third year=$2800

Fourth year=$3800

Fifth Year=$4800

Sixth year=$5800

Seventh year=$6800

Eight year=$7800

Ninth year=$8800

Present value (PV)= C/(1+i)^n

Where C= Amount of money to be discounted

n=Number of periods

I= Interest rate

First year (PV)= $800/(1+0.06)^1

=$754.72

Second year (PV)= $1800/(1+0.06)^2

=$1800/1.124

=$1601.42

Third year (PV)= $2800/(1+0.06)^3

=$2800/1.191

=$2390.97

Fourth year (PV)= $3800/(1+0.06)^4

=$3800/1.263

=$3008.71

Fifth Year (PV)=$4800/(1+0.06)^5

=$4800/1.338

=$3587.44

Sixth year (PV)= $5800/(1+0.06)^6

=$5800/1.419

=$4087.39

Seventh year (PV)=$6800/(1+0.06)^7

=$6800/1.504

=$4521.28

Eight year (PV)=$7800/(1+0.06)^8

=$7800/1.594

=$4893.35

Ninth year (PV)=$8800/(1+0.06)^9

=$8800/1.689

=$5210.18

Total PV=$754.72+$1601.42+$2390.97+$3008.71+$3587.44+$4087.39+$4521.28+$4893.35+$5210.18

=$30,057.46

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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, plan
alina1380 [7]

Answer:

B) 1,160.

Explanation:

First we must calculate planned aggregate expenditures (PAE) and then determine where Y = PAE:

PAE = consumption + planned investment + government spending + net exports = 100  + 0.75(Y - 40) + 50 + 150 +20 = 100 + 0.75Y - 30 + 50 + 150 + 20 = 290 + 0.75Y

Now we must determine where Y and PAE intercept:

Y = 290 + 0.75Y

Y - 0.75Y = 290

0.25Y = 290

Y = 290 / 0.25 = 1,160

*Planned aggregate expenditure = total planned spending, it differs from GDP because GDP includes unplanned investment.

PAE = C + Ip + G + NX   while  GDP = C + I + G + NX

5 0
3 years ago
Calculate the dollar rates of return on the following assets: A painting whose price rises from $200,000 to $250,000 in a year.
Gennadij [26K]

Answer

A. 25%

B.8%

C. 1.2%

Explanation:

a)

($250,000 − $200,000)/$200,000 = 0.25 or 25%

b)

($275 − $255)/$255 = 0.08 or 8%

Their was No exchange rate movements involved assets & returns all in U.S. dollars

c.

Step 1: £10,000 * $1.50/£ = $15,000 initial $ investment

Step 2: £10,000 * (1.10) = £11,000 at end of year

Step 3: £11,000 * $1.38/£ = $15,180 at end of year

Step 4: ($15,180 - $15,000)/$15,000 =

0.012, or 1.2%

7 0
4 years ago
Hiro sells building materials to local contractors. He wants to build long-term relationships with his contractors through effec
Law Incorporation [45]

Answer:

responsiveness and empathy

Explanation:

Based on the information provided within the question it can be said that by doing this Hiro can demonstrate responsiveness and empathy. This is because he is showing empathy by understanding the clients feeling that if they have any problems with the work that has been done they would like it solved. And by understanding this and showing up in order to see if they actually do have any problems and providing a solution he is demonstrating responsiveness. Which will help him build his long-term relationships with his contractors.

6 0
4 years ago
The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 t
bonufazy [111]

The price of a camera decreases from $200 to $180, and in response to the price change the quantity demanded increases from 60 to 70 units. Therefore, demand for cameras in this price range is inelastic.

An economic word known as "inelasticity" describes an item or service's unchanging quantity when its price varies. When prices rise, consumers' purchasing patterns essentially stay the same, and when prices fall, those same purchasing patterns still hold true. This is known as inelastic demand. When an item or service's quantity remains constant when its price increases, it is said to be "inelastic. "When a good or service's price increases or decreases, consumers' purchasing patterns essentially stay the same. The same is true when the price of the good or service decreases. The demand for an item or service that is totally inelastic would not fluctuate regardless of price; however, no such good or service exists. Elastic contrasts with inelastic.

To learn more about inelasticity visit here;

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7 0
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What should I include in my short biography when applying for volunteering?​
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Answer:

You should include why they should choose you and your good qualities

3 0
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