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
MAVERICK [17]
3 years ago
7

Suppose you the alternative of receiving either $22,000 at the end of five years or P dollars today. Currently, you have no need

for money, so you could deposit the P dollars in a bank that pays 5% interest. What value of P would make you indifferent in your choice between P dollars todays and the promise of $22000 at the end of five years?
Business
1 answer:
Marysya12 [62]3 years ago
4 0

Answer:

Indifference amount= $17,237.58

Explanation:

Giving the following information:

Suppose you the alternative of receiving either $22,000 at the end of five years or P dollars today.

We need to find the present value of $22,000 at an interest rate of 5%.

PV= FV/(1+i)^n

PV= 22,000/ 1.05^5= $17,237.58

You might be interested in
Consider the following limit order book for a share of stock. The last trade in the stock occurred at a price of $70. Limit Buy
harkovskaia [24]

Answer:

<u><em>$69.80</em></u>

Explanation:

Note, a market order is an order designed to execute an order immediately by <em>matching the best available price</em> on the sell order list.

When we look carefully at the sell order book, we observe that the only sell order containing the specified quantity of 120 units of shares at a price close to the market price is <u>$69.80.</u> Even though there are other cheaper orders are available, their order quantity does <em>not </em>match the market buy order for the 120 shares and thus would not be filled.

7 0
3 years ago
As a shareholder in Titanic Shipping, Inc., James Blue is one of the many actual owners. In case of the bankruptcy of the corpor
Alekssandra [29.7K]

As a shareholder in Titanic Shipping, Inc., James Blue is one of the many actual owners. In case of the bankruptcy of the corporation, his liability would be limited to the amount of his investment.

<h3>What shareholder means?</h3>
  • Any individual, business, or organization that has stock in a corporation is a shareholder.
  • A shareholder of a firm may own just one share. As residual claimants on a company's profits, shareholders may be subject to capital gains (or losses) and/or dividend payments.

<h3>What is shareholder and example?</h3>
  • The definition of a shareholder is a person who owns shares in a company.
  • Someone who owns stock in Apple is an example of a shareholder noun.
  • A person who owns one or more shares of stock in a joint-stock company or a corporation.

<h3>What is the purpose of a shareholder?</h3>
  • The shareholders are the company's owners and give financial support in exchange for prospective dividends paid out over the course of the business.
  • There are three ways for an individual or business to become a shareholder in a company by adhering to the company's memorandum at the time of incorporation.

Learn more about shareholders here:

brainly.com/question/25847981

#SPJ4

5 0
1 year ago
Why is the study of finance important?​
Nastasia [14]

Answer:

Studying finance can prepare you not only for careers in the financial services sector, but also for tasks in your everyday life. ... And because finance revolves around planning and analysis, studying finance and becoming more financially literate enables people to make better personal financial decisions.

7 0
3 years ago
When companies hire celebrities to advertise their products, they are attempting to make the demand for their product more _____
JulijaS [17]

Answer:

When companies hire celebrities to advertise their products, they are attempting to make the demand for their product higher / more profitable. If this strategy is successful, the firm can raise both awareness and reputation / sales.

Explanation:

"Celebrity endorsement is a promotional tool that boosts brand awareness. It is a way of enhancing credibility and gaining visibility for brands. Celebrities are well-known people and a celebrity endorsement can make a brand stand out"

Reference: Elkins, Hashaw. “The Effect of Celebrities in Advertisements.” Small Business - Chron.com, 29 Mar. 2019

4 0
3 years ago
Which of the following rewards accrues to the factor of production called<br>"capital"​
siniylev [52]

Answer:

As factors of production, the reward for land is rent, capital is interest, labour is wages and salaries and entrepreneur is profit.

6 0
3 years ago
Other questions:
  • A toy manufacturer has just learned that the small, button nose on the stuffed teddy bear it produces might detach and become a
    13·1 answer
  • EA4.
    9·1 answer
  • Wright Company sells merchandise with a one-year warranty. This year, sales consisted of 2,000 units. It is estimated that warra
    15·1 answer
  • Which term describes the cost to replace property minus the deduction for depreciation?
    5·1 answer
  • When a company increases its growth rate by taking goods or services developed at home and selling them internationally it is?
    8·1 answer
  • Service providers must offer cues to help their customers experience and perceive their service more positively and reinforce th
    11·1 answer
  • Consider two bonds, a 3-year bond paying an annual coupon of 5.90% and a 10-year bond also with an annual coupon of 5.90%. Both
    15·1 answer
  • If equilibrium GDP is $250 billion less than the targeted level of GDP, and the Multiplier Model has an mpe of 0.75, then we can
    5·1 answer
  • On 1/1/27, Frankfort Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the com
    12·1 answer
  • How does a fixed exchange rate set the value for a currency?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!