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Neko [114]
3 years ago
5

"A tenant offers to sign a lease paying a rent of $1,000 per month, in advance (i.e., the rent will be paid at the beginning of

each month), for five years. At 10% nominal annual interest compounded monthly, what is the present value of this lease
Business
1 answer:
belka [17]3 years ago
3 0

Answer:

$47,500

Explanation:

Since the payment is made monthly in advance for the period of 5 years, therefore the present value of annuity formula shall be used for the purpose of calculating the Present value of lease, which is given as follow:

Present value of annuity=R+R[(1-(1+i)^-n)/i]

In the given question

R=Rent per month paid in advance=$1,000

i=interest compounded monthly=10%/12=0.83%

n=number of payments involved=(12*5)-1=59

Present value of annuity=1,000+1,000[(1-(1+0.83%)^-59)/0.83%]

                                        =$47,500

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3 years ago
A worker received a $10,000 bonus and decided to split it among three different accounts. He placed part in a savings account pa
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Answer:

so savings = $2200

bonds = $4400

and mutual fund = $3400

Explanation:

given data

received bonus = $10,000

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mutual fund that returned = 4%

income from these investments = $455

to find out

How much did the worker place in the government bonds

solution

we consider amount invested for 4.5 % is = x

and hen his investment in bonds is = 2x  for 5%

and rest is  10000- x  - 2x

that is = (10000- 3x ) for 4%

so

interest equation will be here

0.045 x + 0.05 (2x) + 0.04 (10000-3x) = 455

solve we get

x = 2200

so savings = $2200

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and mutual fund = $3400

4 0
3 years ago
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2 years ago
Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and t
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117,000 adjusted COGS

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