Answer:
$1,203.83
Explanation:
For computing the present value using the continuous compounding we need to apply the formula and the calculation part is also shown in the spreadsheet. Kindly find it below.
Given that
Face value = $2,600
Interest rate = 11%
Time period = 7 years
The formula is shown below:
= Face value ÷ EXP (Interest rate × Time period)
= $2,600 ÷ EXP (11% × 7)
= $1,203.83
Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million
Answer:
Cell
Explanation:
Every little box in excel is called a cell.
Answer:
The answer is: C) Debit supplies $1,000; credit cash $100 and credit notes payable $900
Explanation:
When assets increase, they are debited - so Supplies account should be debited.
When assets decrease, they are credited - so Cash account should be credited.
When liabilities increase, they are credited - so Notes Payable should be credited.