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
Ratling [72]
3 years ago
6

You Just won a prize that will pay you $800 today and $500 a year for the next three years. Which is the correct formula for com

puting the present value as of today at 6 percent?
PV = $500/1.06 + $500/1.062+ $500/1.063
PV = $800 PV $800/1.06$500/1.06+$500/1.06 $500/1.06
PV =$800+ $500/1.06 $500/1.06+ $500/1.061
PV = $800(1.06)+ $500 +$500/1.06 $500/1.06
Business
1 answer:
kow [346]3 years ago
4 0

Answer:

The correct answer is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

Explanation:

Solution

Given that:

A price was wan by you today at =$800

For the next three years =$500 a year

Now

We compute for the present value of today at 6%

Thus

Present value (PV) = $800 + $500/1.06 + $500/1.062 + $500/1.063

Because $800 is receivable today, its present value is equal to $800,

So,

500 receivable after a year will be divided by 1.06

PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

Therefore the right formula for computing the present value as of today at 6 percent is PV = $800 + $500/1.06 + $500/1.062 + $500/1.06^3

You might be interested in
A purely competitive industry has a very ______ number of sellers, whereas the other three market structures reflect a progressi
andrezito [222]

A purely competitive industry has a very <u>large </u>number of sellers, whereas the other three market structures reflect a progressively <u>smaller </u>or <u>decreasing </u>number of sellers.

What are three examples of a market that is only competitive?

Agrarian goods like corn, wheat, and soybeans are excellent examples of a market that is purely competitive. Monopolistic competition is similar to pure competition in that it has few barriers to entry and many suppliers.

What exactly is a product whose market is only competitive?

The characteristics of a market with pure competition the products that are sold are identical. Every seller is the same. It is simple for new businesses to enter the market. Products are priced according to what customers are willing to pay.

Learn more about market structures here:

brainly.com/question/8650428

#SPJ4

7 0
1 year ago
________ look at each budget as if it were brand new and require managers to justify each of the budgeted items. This process en
larisa [96]
The answer for the blink would be Zero-based budgets.
7 0
2 years ago
What is a value that can be used to ensure that hashed plaintext will not consistently result in the same digest?
ch4aika [34]
Salt is the term used in cryptography that defines a value that can be used to ensure that hashed plaintext will not consistently result in the same digest. The salt is<span>  </span>random<span> data that is used </span> to <span> defend passwords against </span>dictionary attacks<span> or against its hashed equivalent.
For each password a new salt is generated randomly.</span>
8 0
3 years ago
a. a marketing firm is looking for a candidate with a business degree and at least five years of work experience. multiple choic
Usimov [2.4K]

A. A marketing company is seeking an applicant with a business degree and at least five years of professional experience. An intersection.

B. A family has made the decision to buy a Honda or Toyota minivan. a union.

<h3><u>What exactly is a marketing firm?</u></h3>

Effective marketing strategies are developed and put into action with the aid of marketing agencies. This frequently starts with marketing research to determine what aspects of the current marketing strategy are working and which ones are not, then moves on to demographic research to develop an accurate picture of the ideal client.

A marketing company can help you create and implement a plan for specific marketing campaigns, assess their effectiveness, and develop an overall marketing strategy once it has a clear understanding of who you are marketing to and what you have already tried to do to reach them.

Learn more about marketing with the help of the given link:

brainly.com/question/14779288

#SPJ9

7 0
11 months ago
On April 2, Granger Sales decides to establish a $290 petty cash fund to relieve the burden on Accounting.
aliya0001 [1]

Answer and Explanation:

The journal entries are shown below:

On Apr 2

Petty cash $290

           To Cash  $290

(Being the establishment of the petty cash fund is recorded)

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

On Apr 10

Mail & Postage $62

Contributions and Donations $33

Meals & entertainment $114

Cash Short and Over $4     ($290 - $62 - $33 - $114 - $77)

                       To Cash  $213

(Being the replenishment of the fund is recorded)

For recording this,  we debited the mail & postage, contributions & donations, meals & entertainment as it increased the expenses and credited the cash as it reduced the assets and the balancing figure is debited to cash short and over

On Apr 11

Petty Cash $140    ($430 - $290)

         To Cash  $75

For recording this we debited petty cash as it increased the cash and credited the cash as it reduced the assets

5 0
3 years ago
Other questions:
  • Groundz Coffee Shop uses 4 pounds of a specialty tea weekly; each pound costs $16. Carrying costs are $52. It costs the firm $8
    8·1 answer
  • In the former USSR, state planners decided what was to be produced. They passed orders down to factories, allocating raw materia
    9·1 answer
  • Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
    7·1 answer
  • 2 forests and their resources what are the costs and benefits of deforestation?
    11·1 answer
  • Explain how organizational culture molds the thinking and outlook of those participating in criminal justice. Specifically ident
    8·1 answer
  • In Canada, the average worker can produce 10 computers or six cars a year. In the United States, the average worker can produce
    12·1 answer
  • A defense contractor has been able to summarize its total annual fixed costs as $100,000 and the total variable cost per unit of
    14·1 answer
  • Instant rewards reinforce desired behavior. Annual raises are ________ effective in reinforcing behavior because there is too mu
    5·1 answer
  • Which of the following is the least important in the sales process?
    5·1 answer
  • Consider again the price control described in the last question. Let's assume that the price control
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!