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Vaselesa [24]
3 years ago
5

How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

Business
1 answer:
Eduardwww [97]3 years ago
6 0

Answer:

$537.78

Explanation:

In order to find the present value of a future payment we discount it using a discount rate. The formula for that is

Present value = Future value/(1+Rate)^Number of years.

In this case we know the future value is $20,000, the discount rate is 7.5% and the number of years are 50, so we just input these numbers in the formula to find the present value or worth today.

Present value = 20,000/(1+0.075)^50

=537.78

$20,000 due in 50 years would be worth $537.78 today if discounted by 7.5%

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A.Volunteering time

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4.42 Frontier Airlines hedged the cost of the jet fuel by purchasing options that allowed the airline to buy fuel at a fixed pri
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$3,129,414.40

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i = 18% compounded monthly = 18% / 12 = 1.5% = 0.015

n = 2 yrs = 2 * 12 = 24 months

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Present value of geometric series = A * [1 - (1+g)^n / (1+i)^n] / (I - g)

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6 0
3 years ago
____________ are people who buy shares of ownership in corporations.
aleksandr82 [10.1K]
The answer is C. stocks =)
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4 years ago
Which of the following statements is correct regarding variable costing and absorption costing income statements for a company t
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Answer:<em> Option (A) is correct.</em>

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Option (A) is correct.

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