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adell [148]
3 years ago
13

Your grandfather has offered you a choice of one of the three following alternatives: $8,500 now; $3,000 a year for five years;

or $41,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative:
Business
1 answer:
Mila [183]3 years ago
3 0

Answer:

Check the explanation

Explanation:

a1.Present value of $8500=$8500

the Present value of $3000 a year for 5 years=$3000*Present value of annuity factor(9%,5)

the Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

=$3000[1-(1.09)^-5]/0.09

=$3000*3.889651263

=$11668.95(Approx)

The Present value of $41000=$41000*Present value of discounting factor(rate%,time period)

=$41000/1.09^5

=$26647.19(Approx).

Therefore  $41,000 received at end of five years is a better value.

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3 years ago
A sales associate listed a condo for $205,000. A sales associate from a competing office called the listing associate to inform
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The statement that applied to the given situation is "Listing associate that needs to present the verbal offer to the seller and act as the individual seller or transaction agent" is considered.

The information related to the transaction agent should be as follows:

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So, here we can conclude that a listing associate that needs to present the verbal offer to the seller and act as the individual seller or transaction agent" is considered.

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4 0
3 years ago
In its most recent financial statements, Del-Castillo Inc. reported $55 million of net income and $840 million of retained earni
Mashcka [7]

Answer:

Difference in retained earnings

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= $15,000,000

Dividend paid = Net income - Difference in retained earnings

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Explanation:

In this case, there is need to determine the difference in retained earnings, which equal retained earnings at the end minus retained earnings at the beginning.

Dividend paid is calculated as net income minus difference in retained earnings.

8 0
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Bailey broker sponsors two sales agents: Jon and Jen. Horace has signed a buyer representation agreement with Bailey to have Bai
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182. 'Agent' and 'essential' are described. An 'agent' is a person hired to do any act for every other or to symbolize some other in dealings with 0.33 person. The person for whom such act is done, or who's so represented, is referred to as the 'fundamental'.

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8 0
2 years ago
Match the items with their descriptions.
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Answer:

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Explanation:

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