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
charle [14.2K]
3 years ago
10

You are comparing two annuities with equal present values. The applicable discount rate is 6.5 percent. One annuity will pay $2,

000 annually, starting today, for 20 years. The second annuity will pay annually, starting one year from today, for 20 years. What is the annual payment for the second annuity
Business
1 answer:
MAVERICK [17]3 years ago
4 0

Answer:

the annual payment for the second annuity is $2,130 paid at end of every year

Explanation:

We have following information for 1st annuity:

Rate: 6.5%

Payment (PMT): -$2,000, paid at beginning of every year

Tenor (Nper): 20 years

We use excel to calculate the present value of annuity = PV(rate,Nper,PMT,,1)

=PV(6.5%,20,-2000,,1) = $23,469

Then we calculate the payment for 2nd annuity = PMT(rate,Nper,PV,,0)

=PMT(6.5%,20,23469,,0) = -$2,130

Download xlsx
You might be interested in
both the demand for and the supply of the resource declines in the same proportion. demand remaining constant, supply of the res
leonid [27]

If both demand and supply decrease, consumers wish to buy less and firms wish to supply less, so output will fall. However, since consumers place a lower value on each unit, but producers are willing to supply each unit only at higher prices, the effect on price will depend on the relative size of the two changes.

What happens if both the demand and supply curves decrease at the same time?

Since decreases in demand and supply, considered separately, each cause equilibrium quantity to fall, the impact of both decreasing simultaneously means that a new equilibrium quantity of coffee must be less than the old equilibrium quantity.

What happens when supply and demand shift at the same time?

If the increase in both demand and supply is exactly equal, there occurs a proportionate shift in the demand and supply curve. Consequently, the equilibrium price remains the same. However, the equilibrium quantity rises. In such a case, the right shift of the demand curve is more relative to that of the supply curve.

What is the meaning of demand and supply?

the amount of goods and services that are available for people to buy compared to the amount of goods and services that people want to buy If less of a product than the public wants is produced, the law of supply and demand says that more can be charged for the product.

What is the relationship of demand and supply?

It's a fundamental economic principle that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise. There is an inverse relationship between the supply and prices of goods and services when demand is unchanged.

Learn more about demand and supply :

brainly.com/question/1222851

#SPJ4

6 0
1 year ago
On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash $ 66,000 Maria Lopez, Drawing $
vlada-n [284]

Answer:

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

2. Dec 31, 2019

Dr Income summary 60,000

Cr Salaries expense 34,000

Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

3. Dec 31, 2019

Dr Income summary 47,500

Cr Retained earnings 47,500

4. Dec 31, 2019

Dr Maria lopez, capital 52,000

Cr Maria lopez, drawing 52,000

Explanation:

Preparation of the closing entries for the above transactions

1. Dec 31, 2019

Dr Fees Income $107,500

Cr Income Summary $107,500

(To close revenue account)

2. Dec 31, 2019

Dr Income summary 60,000

(5500+5200+9300+6000+34000)

Cr Salaries expense 34,000

Cr Supplies expense 6,000

Cr Utilities expense 9,300

Cr Telephone expense 5200

Cr Depreciation expense 5500

(To close expenses account)

3. Dec 31, 2019

Dr Income summary 47,500

($107,500-60,000)

Cr Retained earnings 47,500

(To close income summary account)

4. Dec 31, 2019

Dr Maria lopez, capital 52,000

Cr Maria lopez, drawing 52,000

(To close drawings account)

6 0
2 years ago
What is protectionism and why would a country base trade policy on it? Explain at least two reasons.
Anton [14]
Protectionism is a government or economic policy that does not allow foreign or international trade through methods and variety of government regulations outlined to promote fair competition with the goods and services made domestically. Business and workers were protected within a country through regulating or obstructing trade with different countries.

<span>A country should base trade policy for two reasons. 1.) It protects local businesses and jobs.  2.) It promotes fair competition on the local goods and services.</span>


3 0
3 years ago
Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The compa
zysi [14]

Explanation:

The adjusting journal entry to record the given adjustment is shown below:

At the year-end

Insurance expense A/c Dr. A/c $800

       To Prepaid Insurance A/c $800

(Being insurance expense is recorded)

The computation is given below:

= Prepayment done for 6 months insurance policy - expired insurance

= $1,200 - $400

= $800

3 0
3 years ago
Which of the following statements is correct?a. Monopolistic competition is similar to monopoly because both market structures a
nata0808 [166]

Answer:

The correct answer is (A)

Explanation:

Monopoly and monopolistic competition are similar in many ways. In both type of markets the firms are usually the price makers. Being the only firm in the market gives them an opportunity to earn abnormal profits and in both cases firms earn abnormal profits. Perfect competition is a type of market that is totally different in terms of number of sellers and buyers. In perfect competition firms are the price takers.

4 0
3 years ago
Other questions:
  • This is the same as productivity, as it is quantity of goods or services produced in a given period, by a firm, industry, or cou
    9·2 answers
  • Which of the following statements can be used to explain the growth of international business? a. Many countries in Europe and A
    9·1 answer
  • The most important factor determining whether a research collaboration will be successful is:
    8·2 answers
  • Which of the following types of business does not require an attorney to set up?
    11·2 answers
  • Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount
    14·1 answer
  • How should Kane work with the salespeople to introduce the change?
    10·1 answer
  • Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity d
    5·1 answer
  • Brian, an industrial equipment sales rep, purchases a quick snack to eat on the way to work. he buys lunch while on the road vis
    13·1 answer
  • You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to in
    12·1 answer
  • Which is NOT a reason companies integrate horizontally?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!