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
Novay_Z [31]
3 years ago
13

You will receive annual payments of $800 at the end of each year for 12 years. The first payment will be received in Year 3. Wha

t is the present value of these payments if the discount rate is 7 percent?
a. $5,465.20
b. $6,018.52
c. $6,299.80
d. $5,549.96
e. $6,856.60
Business
1 answer:
Aneli [31]3 years ago
3 0

Answer:

Option (d) $5,549.96

Explanation:

Data provided in the question:

Annual payments = $800

Time, n = 12 years

Discount rate, r = 7% = 0.07

Now,

PV2 = Annual payments × ((1 - (1 + r)⁻ⁿ)) ÷ r ) × (1 + r)

=  $800 × ( (1 - ( 1 + 0.07)¹²)) ÷ 0.07) × (1 + 0.07)

PV2 = $6,354.15

Therefore,

Present value today = PV2 ÷ (1 + r )²

= $6,354.15 ÷ (1 + .07)²

or

= $5,549.96

Hence,

Option (d) $5,549.96

You might be interested in
If you were to going to use a graphic that best showed the relative proportions of educational spending in the State of Californ
Svetradugi [14.3K]

Answer:

(c) Circle graph

Explanation:

The circle graph or pie chart is commonly used when we want to give a visual demonstration of the proportional division of a data. Each item is expressed as a sector of the circle where the angle is relative to the value of the item.

6 0
2 years ago
Read 2 more answers
Prepare Journal Entries in a Purchases Journal
kenny6666 [7]

Answer:

Explanation:

DATE Account AccountsPayable OfficeSupplies OtherAccounts

         Credited         credit                   debit                  debit

Apr. 4  Officemate    $620                 $610                 no entry

Apr. 9  Tek Village    $2,460                                       $2,460

Apr. 16Officemate     $170                   $170                  no entry

Apr. 19  Paper to Go $250                 $250                 no entry

Apr. 30 Total          $3,500                 $1050                $2,460

b. Total amount posted / credited to accounts payable=  $( 620+2,460 + $170 + 250) = $3500

Total amount from and debited from Office supplies = $(610 + 170+ 250) = $1050

What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?

$ __170____ ie $ 610 + 170 - 610( because invoice on April 4th was paid on April 27th.

8 0
3 years ago
In 2 hrs, Whitney can make 4 dozen cookies or 2 peach tarts. Her friend, Amy, can make 7 dozen cookies or 1 peach tart.
bogdanovich [222]

Answer: 4 dozen cookies and 1 peach tart

Explanation:

Whitney can make:

4 dozen cookies or 2 peach tarts in 2 hours

Amy can make:

7 dozen cookies or 1 peach tart in 2 hours

Here, we assume that there is only 2 hours of production

Cookies:

If Whitney specialize in cookies and there is no production of tart but only the production of cookies by Whitney, then,

Total production of cookies = 4 dozen cookies

Tart:

If Amy specialize in peach tart and there is no production of cookies but only the production of peach tart by Amy, then,

Total production of peach tart =  1 peach tart

3 0
3 years ago
If the level of activity increases within the relevant range Group of answer choices Variable cost per unit and total fixed cost
MatroZZZ [7]

Answer:

Total cost will increase and fixed cost per unit will decrease V

Explanation:

5 0
3 years ago
Elin wants to retire in 20 years when she turns 60. Elin wants to have enough money to replace 120% of her current income less w
xxMikexx [17]

Answer:

She needs :$4,045,303 for her retirement

Explanation.

Total all expenses and earnings

3 0
3 years ago
Other questions:
  • At the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $10,670, and
    5·1 answer
  • Is it possible to make homogeneous shopping product into a heterogeneous shopping product? think about flat-panel televisions an
    7·1 answer
  • Carolyn has an AGI of $38,000 (all from earned income), two qualifying children, and is filing as a head of household. What amou
    14·1 answer
  • Public policy toward monopolies Suppose that there is only one provider of a service in a state. Because this provider experienc
    8·1 answer
  • Harlan Corporation deposits $225,000 every June 30th and December 31st in a savings account (beginning in the current year) for
    13·1 answer
  • Foster, who owns a successful business with two locations and a few international clients, was approached by a large organizatio
    7·1 answer
  • Creative Networks is a major participant in the advertising and promotion process. It attracts various companies to buy space an
    8·1 answer
  • Peace of mind provides​ house-sitting for people while they are away on vacation. Some of its customers pay immediately after th
    5·1 answer
  • Which one of the following statements related to the internal rate of return (IRR) is correct? Multiple Choice Financing type pr
    11·1 answer
  • A company purchased $10,300 of merchandise on June 15 with terms of 2/10. n/45, and FOB shipping point. The freight charge, $650
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!