First, we calculate the present value in year 5 of the annuity and then once again calculate the present value of this result to get the value today
Present value an annuity = P*(1-(1+r)^-n)/r
where P = 3200, r = 0.10 and n = 15 payments (from year 6 to year 20)
Present value of the annuity in year 5 = 3200*(1-(1+0.10)^-15/)0.10
Present value of the annuity in year 5 = 3200*(1-1.10^-15)/0.10
Present value of the annuity in year 5 = 24,339.45
Now with 24,339.45 as the FV , we calculate the present value today as
PV today = FV/(1+r)^n = 24339.45/1.10^5
PV today =15,112.89
Value today =$15,112.89
Its B, Professional and business services. I just took the test.
Answer:
C. Variables that tend to fluctuate in advance of the overall economy.
Explanation:
Leading Economic Indicators:-These are the stats that come before economic events.They predict the upcoming phase of the business cycle.Which is important for an economy that is coming out of a recession or will be entering into recession.
So these are the variables which will fluctuate or has a tendency to fluctuate when there is advances in the overall economy.
C. Budget for fixed expenses before flexible expenses.
I think it's these:
guarantee a set rate of return
provide diversification for a single investment
pools the assets of multiple investors
I hope it helped you!