Answer:
The answer is True
Explanation:
The DC Kitchen which was started by Robert Egger was meant to address hunger by empowering minds and to meet the needs of those who were in poverty.
Answer:C.TINSTAAFL Rating
Explanation:
Answer:
Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.
Explanation:
Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.
![PresentValue=\frac{FutureValue}{(1+r)^{n} }](https://tex.z-dn.net/?f=PresentValue%3D%5Cfrac%7BFutureValue%7D%7B%281%2Br%29%5E%7Bn%7D%20%7D)
Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.
![PresentValue=\frac{500}{(1+0.07)^{9} } =271.97](https://tex.z-dn.net/?f=PresentValue%3D%5Cfrac%7B500%7D%7B%281%2B0.07%29%5E%7B9%7D%20%7D%20%3D271.97)
Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.
![Present Value=\frac{A((1+r)^{n}-1 )}{r(1+r)^{n} }](https://tex.z-dn.net/?f=Present%20Value%3D%5Cfrac%7BA%28%281%2Br%29%5E%7Bn%7D-1%20%29%7D%7Br%281%2Br%29%5E%7Bn%7D%20%7D)
And we solve for "A" like this
![171.97=\frac{A((1+0.07)^{9}-1 )}{0.07(1+0.07)^{9} }](https://tex.z-dn.net/?f=171.97%3D%5Cfrac%7BA%28%281%2B0.07%29%5E%7B9%7D-1%20%29%7D%7B0.07%281%2B0.07%29%5E%7B9%7D%20%7D)
![171.97=\frac{A(0.838459212 )}{0.128692145}](https://tex.z-dn.net/?f=171.97%3D%5Cfrac%7BA%280.838459212%20%29%7D%7B0.128692145%7D)
![171.97=A(6.515232249)](https://tex.z-dn.net/?f=171.97%3DA%286.515232249%29)
![A=\frac{171.97}{6.515232249} = 26.40](https://tex.z-dn.net/?f=A%3D%5Cfrac%7B171.97%7D%7B6.515232249%7D%20%3D%2026.40)
Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.
Best of luck.
Answer:
108,280.22
Explanation:
Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable
U(x) = x^1/4
U^-1(x) = x^4
U^-1(x) === x^4
CE(x) = x^4
Salary Bonus Total income U(x)= x^(1/4) P(x) U(x)*P(x)
80000 0 80000 16.82 1/7 2.4
80000 10000 90000 17.32 1/7 2.47
80000 20000 100000 17.78 1/7 2.54
80000 30000 110000 18.21 1/7 2.6
80000 40000 120000 18.61 1/7 2.66
80000 50000 130000 18.99 1/7 2.71
80000 60000 140000 19.34 1/7 <u>2.76</u>
Sum <u>18.14</u>
CE(x) = 18.14^4
CE(x) = 108280.22
So therefore, the certainty equivalent of this job offer is 108,280.22
Answer:
c. decreases the value of its bonds
Explanation:
There is a significant decrease in the value of the bond if the firm declares bankruptcy.