Answer:
PV= $22,677.03
Explanation:
Giving the following formula:
Number of periods (n)= 9 years
Annual payment (A)= $3,800
Discount rate (i)= 12%
<u>First, we will calculate the future value of the payments using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
FV= {3,800*[(1.12^9) - 1]} / 0.12 + {[3,800*(1.12^9)] - 3,800}
FV= 56,147.49 + 6,737.7
FV= $62,885.19
<u>Now, the present value:</u>
PV= FV / (1 + i)^n
PV= 62,885.19 / (1.12^9)
PV= $22,677.03
Answer:
The correct answer is letter "B": availability.
Explanation:
Availability bias or availability heuristic refers to individuals tending to relate the easiest judgment they can recall about a certain matter as its most suitable metric and even a metric that could predict future behavior on that topic. This happens because those people make assumptions based on what they can remember of that matter which might not be necessarily the most accurate input about it.
Therefore,<em> if a manager is measuring performance only placing focus on employees' recent and not past behavior, the manager is implementing availability bias.</em>
Answer:
$9,760.48
Explanation:
Present value of annuity due = P* [[1 - (1+r)^-(n-1)] / r] + P. Where P = Periodic payment = $1,000, r = Rate of interest per period 4% (0.48/12), n = number of payments 12 (12*1)
Present value of annuity = $1000 * [[1 - (1 + 0.04)^-(12-1)] / 0.04] + $1000
Present value of annuity = $1000*8.760475 + $1000
Present value of annuity = $8760.48 + $1000
Present value of annuity = $9,760.48
Answer: continuance commitment
Explanation:
The above scenario explains a continuance commitment. This occurs when a worker remains with a particular organization after he or she looks at both the benefits and costs of leaving and sees that the cost of leaving the organization outweighs the benefits.
In this case, even though Matrice has had several recruiters offering interviews for possible positions at different companies, he believes that he should stay as a result of the medical insurance benefits that he gets. This is thus referred to as continuance commitment.
Answer:
money and credit markets,investments,financial management
Explanation:
Finance consists of three interrelated areas: (1) money and credit markets, which deals with the securities markets and financial institutions; (2) investments, which focuses on the decisions made by both individuals and institutional investors; and (3) financial management, which involves decisions made within the ...
