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Lesechka [4]
2 years ago
9

Wilt has a consulting contract with a firm that states that he will receive annual payments of $50,000 a year for five years wit

h the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent
Business
1 answer:
Evgesh-ka [11]2 years ago
7 0

Answer:

Current value of contract is $214,142.50

Explanation:

A fix payment for a specific period starting today is called advance annuity. It is discounted on a given rate to calculate present value of annuity.

Present value of annuity is calculated by following formula.

PV of annuity = C  [ ( 1 - ( 1 + r )^-(n-1) ) / r ]

PV of annuity = $50,000 [ ( 1 - ( 1 + 0.084 )^-(5-1) ) / 0.084 ]

PV of annuity = $50,000 [ ( 1 - ( 1 + 0.084 )^-4 ) / 0.084 ]

PV of annuity = $214,142.50

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Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.
balandron [24]

Answer:

<u>a defense attorney instead</u>

<u>Explanation:</u>

From a financial standpoint, a <u>defense attorney</u> would more likely make more money than a<u> juvenile prosecutor</u> because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.

Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.

6 0
3 years ago
Martin is offered an investment where for $6000 today, he will receive $6180 in one year. He decides to borrow $6000 from the ba
Ne4ueva [31]

Answer:

The maximum interest rate which the bank needs to offer the loan is 3%

Explanation:

The maximum interest rate which the bank needs to offer the loan is computed as:

Maximum interest rate = Amount received in one year - Amount invested today / Amount invested today

where

Amount received in one year is $6,180

Amount invested today is $6,000

Putting the values above:

Maximum interest rate = ($6,180 - $6,000) / $6,000

= $180 / $6,000

= 3%

So, the maximum interest rate is 3% which is needed to offer by banks

3 0
3 years ago
The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per company's rec
Sphinxa [80]

Answer:

D) deduction from the balance per bank statement

Explanation:

A bank reconciliation statement is a document that matches the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps determine if accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.

7 0
3 years ago
Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua
Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = \frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}         ........................1

put here value we get

43.96 = \frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}

solve it we get

cost of equity =  0.121735

cost of equity = 12.16 %

8 0
3 years ago
How long is a frosty good for in the freezer?
gregori [183]
I'd say a day or two, depending on if it's covered or not
7 0
3 years ago
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