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Pavel [41]
3 years ago
9

You have just received a windfall from an investment you made in a​ friend's business. He will be paying you at the end of this​

year, at the end of the following​ year, and at the end of the year after that​ (three years from​ today). The interest rate is per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?
Business
1 answer:
ohaa [14]3 years ago
3 0

Answer:

a. $80,318.70

b. $97,568.57

Explanation:

Here is the full question :

You have just received a windfall from an investment you made in a​ friend's business. She will be paying you $ 15 comma 555 at the end of this​ year, $ 31 comma 110 at the end of next​ year, and $ 46 comma 665 at the end of the year after that​ (three years from​ today). The interest rate is 6.7 % per year. a. What is the present value of your​ windfall? b. What is the future value of your windfall in three years​ (on the date of the last​ payment)?

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $ 15,555

Cash flow in year 2 = $31,110

Cash flow in year 3 =  $ 46,665

I = 6.7%

Present value = $80,318.70

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

$80,318.70(1.067)^3 = $97,568.57

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Answer:

The answer is 54percent

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Elasticity is a measure of how sensitive one variable is to any variable. It is expressed as the ratio of percentage changes in variables.

That is; %change in quantity demanded/%change in price.

This calculation shows how sensitive quantity demanded is to a change in price.

In the question, price elasticity of demand is 1.8

30 percent decrease in price

Therefore, the quantity demanded will increase by 30percent x 1.8

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Which of the following is the principle of management dedicated to the structuring of resources to support the accomplishment of
yaroslaw [1]

Answer:

a. organization

Explanation:

There are basic five principal of Management:

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These basic five principal make an average manager to a successful manager.

Planning in management play a vital role as it is about choosing the right process and active objective of organization.

Organization is about structuring of resources and managing relationship with worker to acchieve organization´s goal.

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6 0
3 years ago
Marcus (20) attends State University and is a qualifying student for the purpose of the American Opportunity Tax Credit (AOTC).
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The maximum AOTC that can be claimed by Andre’s parents is $2,500.

American Opportunity Tax Credit means a tax credit on education expenses which are incurred within first four years of a student’s higher education.

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Maximum AOTC = $ 2000 + (0.25 × $2000)

Maximum AOTC = $2000 + $ 500

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<em>brainly.com/question/2370788</em>

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The accounting profit is equal to
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3 years ago
Phil's Dinor purchased some new equipment two years ago for $32,600. Today, it is selling this equipment for $22,000. What is th
Sergio039 [100]

Answer:

(C) $19,776.80

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The company will pay taxes for the difference between book value and sale value at disposal:

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32,600 (1 - 0.20 - 0.32) = 32,600 x 0.48 = 15,648

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after tax cash flow: 22,000 - 2,223.2 = 19,776.8

3 0
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