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Lera25 [3.4K]
3 years ago
12

Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will recei

ve payments for next four years. At a discount rate of 9.5 percent, what is the difference in the present value of these two sets of payments?
A.$141.80
B.$151.06
C.$154.30
D.$159.08
E.$162.50
Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

A.$141.80

Explanation:

Present Value of Trish payments = P+P\frac{1-(1+(r/m))^{-(n-1)} }{r/m}

Present Value of Trish payments = $450 + $450 \frac{1-(1+(0.095/12))^{-(48-1)} }{0.095/12}

Present Value of Trish payments = $180,54

Present Value of Josh payments = P\frac{1-(1+(r/m))^{-n} }{r/m}

Present Value of Josh payments = $450 \frac{1-(1+(0.095/12))^{-48} }{0.095/12}

Present Value of Josh payments = $17,912

Difference between two payments = 18054 - 17912 = 141

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Answer:

B. $6,000

Explanation:

The computation of the annual depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)  

= ($41,000 - $5,000) ÷ (6 years)  

= ($36,000) ÷ (6 years)  

= $6,000

The original cost is computed below:

= Purchase value + transportation and installation cost

= $40,000 + $1,000

= $41,000

8 0
3 years ago
When was the word integer introduced?
svet-max [94.6K]
<span>The origin of the word integer dates back to the early 16th century. Back then, the word was used as an adjective meaning 'entire' or 'whole'. However, the word is composed of two Latin words 'in-' (expressing negation) and the root of 'tangere' (to touch) which were used separately ages before it came together we know it today.</span>
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Selecting a base year and expressing each amount as a percent of the base year amount is called:
Sliva [168]

The process of selecting a base year and expressing the amount as a percent of the base year amount is referred to as trend analysis. Percentage change can be calculated between two periods or over a longer period of time.

Percentage change between two periods:

<span> Subtract the earlier year from the later year. A negative difference means the change is a decrease. A positive difference means it is an increase. Then divide the change by the earlier year's balance. </span>

Percentage change over a longer period of time:

<span>1.    </span>Select the base year.

<span>2.    </span><span>Divide the amount in each nonbase year (for each line item) by the amount in the base year and multiply by 100.</span>

4 0
3 years ago
Negative transfer is said to have occurred when: a. A trainee dislikes the training sessions b. A trainee's performance declines
brilliants [131]

Answer: B) a trainee's performance declines after training

Explanation: Negative transfer occurs when previous learning hinders further learning. It is best defined as the interference of previous knowledge with new ones, wherein the new set of knowledge could hurt the performance of a new often related knowledge. A typical example could be changing from a right-handed to a left-handed wheel drive or from a manual to an automatic transmission. Negative transfer usually is problematic during the early stages of learning a new task but with experience, learners can correct the effects of negative transfer.

6 0
3 years ago
Read 2 more answers
Some researchers and analysts have noticed a trend in which firms that increase their dividends see an increase in their stock p
alina1380 [7]

Answer:

The theory which explains the phenomenon described in the question is referred to as "Dividend Signaling".

Explanation:

When a company announces that is will be paying dividends, stock market players percieve this as an indication of :

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Hence investors will find it more attractive to purchase such a stock.

Cheers!

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3 years ago
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