Explanation:
For continuous compounding, we use the following formula
![FV_{N} = PVe^{i N}](https://tex.z-dn.net/?f=FV_%7BN%7D%20%3D%20PVe%5E%7Bi%20%20N%7D)
<u>Scenario 1 : </u>
FV = $ 90
N = 2 years
I = 6%
PV= ?
![FV_{N} = PVe^{i N}](https://tex.z-dn.net/?f=FV_%7BN%7D%20%3D%20PVe%5E%7Bi%20%20N%7D)
![90 = PVe^{(0.06) (2)}](https://tex.z-dn.net/?f=90%20%3D%20PVe%5E%7B%280.06%29%20%282%29%7D)
![\frac{90}{e^{(0.06) (2)}} = PV](https://tex.z-dn.net/?f=%5Cfrac%7B90%7D%7Be%5E%7B%280.06%29%20%282%29%7D%7D%20%20%3D%20PV)
PV = $ 79.82
<u>Scenario 2:</u>
![FV_{N} = PVe^{i N}](https://tex.z-dn.net/?f=FV_%7BN%7D%20%3D%20PVe%5E%7Bi%20%20N%7D)
![90 = PVe^{(0.06) (3)}](https://tex.z-dn.net/?f=90%20%3D%20PVe%5E%7B%280.06%29%20%283%29%7D)
PV = $ 75.17
<u>Scenario 3:</u>
![FV_{N} = PVe^{i N}](https://tex.z-dn.net/?f=FV_%7BN%7D%20%3D%20PVe%5E%7Bi%20%20N%7D)
![90 = PVe^{(0.06) (4)}](https://tex.z-dn.net/?f=90%20%3D%20PVe%5E%7B%280.06%29%20%284%29%7D)
PV = $ 70.80
For most businesses, annual straight line depreciation expense on the company's building is fixed cost.
A fixed cost is one that does not change no matter how many units of a good or service are produced or sold. Fixed costs are expenses a company must pay regardless of the specific economic operations it does. As a result, fixed expenses are often indirect because they have nothing to do with how a firm produces any goods or services. Both fixed expenses and variable costs, which together make up a company's total costs, are common. It's common practice to reduce fixed expenses by using shutdown points.
Learn more about fixed costs here:
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When razor-razor-blade model and the subscription model is been combined, it explains that telecom providers keeps their churn rate as they make their money through lengthy service plans.
<h3>What is razor and blades business model ?</h3>
The razor and blades business model serves as a model which explains selling of an item at a low price so as to increase sales of a complementary good.
This also helps telecom providers with their proportion of subscribers
Learn more about models at;
brainly.com/question/24448358