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To include a copy of the agent's buyer representation agreement with the offer.
Answer:
She should pay $22,819 for this investment.
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where P = Annual payment = $5,000
r = rate of return = 12%
n = number of years = 7 years
PV of annuity = $5,000 x [ ( 1- ( 1+ 0.12 )^-7 ) / 0.12 ]
PV of Annuity = $22,818.78
Answer:
The correct answer is 2.5%
Explanation:
The rate of inflation is always factored in when calculating the expected market interest for a year.
From the example, the expected real rate of return/interest rate = 2.0 percent
Factoring in an expected 0.5% inflation rate,
= 2.0 + 0.5 = 2.5%
The expected market interest rate for a one-year U.S. Treasury Security = 2.5%
Answer:
1800
Explanation:
Production Function is the relationship between production inputs & production outputs, given technology. It shows maximum output that can be produced with minimum inputs, given technology.
Production Function: f (L,K,M) = L + K^2 + 4M
K = 40 , L = 100 , M = 100
Production = 100 + (40)^2 + 100
100 + 1600 + 100
= 1800