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zavuch27 [327]
3 years ago
12

Clarissa wants to fund a growing perpetuity that will pay $10,000 per year to a local museum, starting next year. She wants the

annual amount paid to the museum to grow by 5% per year. Given that the interest rate is 9%, how much does she need to fund this perpetuity?
Business
2 answers:
mojhsa [17]3 years ago
8 0

Answer:

$250,000

Explanation:

Perpetuity is a type of payment that has no end. It starts on a particular date and continues endlessly.

Given:

Amount paid per year = $10,000

Annual Growth Rate = 5%

Interest Rate = 9%

Perpetuity = Amount paid/(Interest rate-Growth rate)\\Perpetuity = 10,000/(9/100-5/100)\\ Perpetuity= 10,000/0.04\\Perpetuity =250,000

Clarissa need $250,000

Viefleur [7K]3 years ago
5 0

Answer:

$250,000

Explanation:

In finance, perpetuity refers to an annual payment that does not ever end. This stream of cash is meant to continue forever. Perpetuities still exist, but are very rare. In this case, Clarissa wants to fund a perpetuity that will pay $10,000 per year, grow by 5%, and have an interest rate of 9%.

The formula for this would be:

PV0= 10000 / (0.09 - 0.05) =

PV0= 10000 / 0.04 =

PV0= 250,000

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The correct answer is
A) An increase in international shipping has led to more pollution.
6 0
2 years ago
gary, bill and carmella invested in a corporation in the ratio of 2:3:5, respectively. if they divide the profit of $82,000 prop
Hitman42 [59]

Answer:

Each will receive:

Gary: $ 16,400

Bill: $24,600

Carmella: $ 41,000

Explanation:

The profit is shared according to the ratios of their investment as per below calculations:

Gary: $82,000×2/10 = 16,400

Bill: $82,000*3/10 = 24,600

Carmella $82,000 *5/10 = 41,000

8 0
3 years ago
The payroll register of Sara Company indicates $5,800 of social security withheld and $1,450 of Medicare tax withheld on total s
Mashcka [7]

Answer: $9,203

Explanation:

Witheld tax amount by company:

Social security = $5,800

Medicare tax = $1,450

Total Earning subject to unemployment compensation tax = $31,500

Federal Unemployment tax rate = 0.8%

State Unemployment tax rate = 5.4%

Federal Unemployment tax amount = 0.008 × $31,500 = $252

State Unemployment tax amount = 0.054 × $31,500 = $1,701

Total payroll tax expense :

(social security + Medicare tax + federal unemployment tax + state unemployment tax)

$(5,800 + 1,450 + 252 +1701)

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7 0
3 years ago
How do purchase returns and allowances and purchase discounts affect gross purchases?
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Answer:

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7 0
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A common practice for government entities, particularly schools, is to issue short-term (promissory) notes to cover daily expend
diamong [38]

This shorter payback period is positive and beneficial to the consumer, as it allows for harmony with amortization expenses.

We can arrive at this answer because:

  • A short payback period is beneficial because of its relationship to amortization, as long-term debt allows this amortization to take place.
  • These amortization expenses allow the cost of long-term assets to be represented in the payment.
  • However, when the short-term payback period allows for amortization, causing the asset's value to be reduced by the amount that will be paid by the consumer.

In this case, we can state that in cases like the one shown in the question above, the short payback period is very beneficial and interesting to the consumer, as it can promote economic benefits.

More information:

brainly.com/question/23160357?referrer=searchResults

5 0
3 years ago
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