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
Mnenie [13.5K]
3 years ago
14

Your financial planner offers you two different investment plans. Plan X is a $14,000 annual perpetuity. Plan Y is an annuity la

sting 13 years and an annual payment, $20,000. Both plans will make their first payment one year from today. At what discount rate would you be indifferent between these two plans? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Sonbull [250]3 years ago
7 0

Answer:

At 9.70% discount rate would you be indifferent between these two plans.

Explanation:

Present Value of Perpetuity = P/r

Present Value of Annuity = P/r[1 - (1 + r)^-n]

$14,000/r = $20,000. /r[1 - (1 + r)^-13]

(1 + r)^-13 = 1 - $14,000/$20,000.

(1 + r)^13 = 10/3

r = 9.70%

Therefore, at 9.70% discount rate would you be indifferent between these two plans.

You might be interested in
The Pastel Paint Company recently loaned $300,000 to KIX 96, a local radio station. The radio station signed a noninterest-beari
VladimirAG [237]

Answer:

Following are the queries to these question:

Explanation:

Reporting entering for recording the note received

Permissible notes (face amount)........................................................  \$300,000

Cash................................................................................................... \$300,000

7 0
3 years ago
Janet needs to assign a very important advertising account to one of her writers. First she reviewed each​ writer's work​ load,
S_A_V [24]

Answer:

D. systematic study

Explanation:

7 0
3 years ago
Please help me anyone (picture attached)
sergey [27]

Answer:

Im not entirely sure, but i think

2. Should be D

3. Should be A

(i could be wrong but im about 90 percent sure those r right)

Explanation:

3 0
2 years ago
Extra pairs of shoes and music downloads are examples of
s344n2d4d5 [400]

Answer:

These are examples of <u><em>WANTS!</em></u>

Explanation:

6 0
3 years ago
Read 2 more answers
Which of the following statement is not true about the Project stakeholders?
xxMikexx [17]

I think d is the answer

Explanation:

all stakeholders must not be independent all must work together

4 0
3 years ago
Other questions:
  • Kalani is an account executive with a medical device company that sells sophisticated camera equipment used in surgical procedur
    13·1 answer
  • Prom Night Formal Wear has the following stockholders' equity accounts at December 31, 2018: Common Stock, $1 par value, 1,200,0
    10·1 answer
  • What is product positioning?
    15·2 answers
  • On July 1, 2017, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July
    13·1 answer
  • A disadvantage of speed dating is that it ________. is one of the most expensive dating methods tends to rate potential daters l
    15·1 answer
  • JFS Co. constructed a new subdivision during 2020 and 2021 under contract with National Hoopla Company. Relevant data are summar
    9·1 answer
  • In order to save time, money, and effort a group of criminologists, sociologists, psychologists, and political scientists combin
    5·1 answer
  • On January 1 of the current year, Anna and Jason form an equal partnership. Anna contributes $50,000 cash and a parcel of land (
    15·1 answer
  • How do credit
    13·1 answer
  • If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!