1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elenna [48]
3 years ago
13

What is the current value of a future sum of money called?

Business
1 answer:
Dennis_Churaev [7]3 years ago
6 0

<span>Present value is the current value of a future sum of money. Present value of money is used to compute the time value of money. It is also known as ‘present discounted value’ or ‘discounted value.’ It is the worth of money now to be paid in series of payments at a certain interest rate to arrive at the future value.</span>

You might be interested in
Covenants represent:
gregori [183]

Answer:

the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment

Explanation:

covenants help lenders detect deteriorating loan quality.

8 0
3 years ago
an instance where sellers should work to keep relationships with consumers is when they feel that the product
irina1246 [14]
An instance where sellers should work to keep relationships with consumers is when they feel that the product
5 0
3 years ago
Your firm has a bond issue with a face value of $250,000 outstanding. These bonds have a coupon rate of 7 percent, pay interest
trapecia [35]

Answer:

$3,675

Explanation:

Calculation to determine the amount of the annual interest tax shield

Using this formula

Annual interest tax shield=Outstanding face value*Coupon rate*Tax rate

Let plug in the formula

Annual interest tax shield = $250,000 *.07 *.21

Annual interest tax shield= $3,675

Therefore the amount of the annual interest tax shield is $3,675

7 0
3 years ago
Assume an economy is currently engaged in free trade but considering implementing a tariff on its main import, athletic shoes. W
UNO [17]

Answer:

Price - increase

Domestic production- increase

Import- reduces

Producer surplus- increase

Explanation:

A tariff is a form of tax on import or export.

When a tariff is imposed on a good , the price of the good increases.

As a result of the tariff , the amount of the goods imported falls as the imported good is now more expensive. The quantity produced by domestic producers increases as consumers would now start demanding for the domestic good. Tariffs are sometimes enacted to discourage importation and encourage domestic production.

As a result of the price increase, producer surplus increases. The increase in price also increases output. The producer surplus is the difference between the price of a product and the least amount the producer is willing to sell his product.

I hope my answer helps you.

7 0
4 years ago
A commercial building with a market value of $200,000 has an insurance policy with an 80 percent coinsurance clause. The owner c
RideAnS [48]

Answer:

$45,000

Explanation:

In this case the market value is $200,000 but the policy limit is only $120,000, with a coinsurance of 80%.

Since the amount of loss = $60,000, the insurance company will pay:

(stop limit / value) x loss = ($120,000 / $160,000*) x $60,000 = 0.75 x $60,000 = $45,000

*the $160,000 value is determined by multiplying the fair market value of the property times the coinsurance = $200,000 x 80% = $160,000

8 0
3 years ago
Other questions:
  • "A broker-dealer who acted as financial advisor to a municipality in structuring a new issue now wishes to act as underwriter in
    8·1 answer
  • Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1,500. The BuyRite saleswoman tells
    9·2 answers
  • Suppose you have drawn a consumer's budget line for food and clothing, with food on the x-axis. Which of the following events wo
    15·1 answer
  • Suppose you produce T-shirts, and you are charging less than the equilibrium price. By buying all of your products and demanding
    7·2 answers
  • Marcus has recently been asked to conduct a Feasibility Analysis for automating a process in his organization. In this regard, h
    7·1 answer
  • Which statement bestexplains the association between a risk factor and the development of adisease?
    5·1 answer
  • Corporate owners earn a return​ ________. A. through interest earnings and earnings per share B. through capital appreciation an
    8·1 answer
  • "Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the
    10·1 answer
  • You are asked to recommend whether a firm should make or purchase product A. The following are data concerning the two options.
    15·1 answer
  • Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!