Answer:
PMT = $95,000
Rate = 4%
Life = 8 years
a. Amount to be deposited today
= PV(Rate, N, -PMT)
= PV(4%, 8, -95,000)
= $639,610.76
b. Amount in account after 3rd withdrawal
= PV(Rate, N, -PMT)
= PV(4%, 5, -95,000)
= $422,913.12
c. Balance in account after 8th withdrawal
= = PV(Rate, N, -PMT)
= PV(4%, 0, -95,000)
= $0
d. How much would you have at the end of 8 years?
= FV(4%, 8, -639610.76)
= $875,351.49
Answer:
it represents the value of all goods and services produced over a specific time period within a country's borders.
Economists can use GDP to determine whether an economy is growing or experiencing a recession.
Investors can use GDP to make investments decisions
a bad economy means lower earnings and lower stock prices.
Explanation:
good luck
Answer:
Costs and benefits are weighed to determine if producing the good will be profitable.
Explanation:
Production of goods refers to the process through which raw material and resources are converted to a finished product. In most economies, production of goods are services is necessary to meet the demand for these goods. Companies and firms utilize resources like labor and materials to produce finished products. This is usually a costly activity that needs to be planned and organized for it to be successful. Since most businesses is for profit making, the production process has to be done in such a way that in the end, profits are made. Production processes requires financial strategies to be applied and assessed to ensure that the process is profitable in the long run.
An example of a financial analysis that can be used is the cost benefit analysis. The cost benefit analysis involves determination of all the resources that will be needed as input. The input is then convert into monetary terms, then summed together. The total amount of input in monetary terms is the cost, since that i the total amount needed to process the raw materials to finished goods. The future benefits are also forecasted and converted into monetary terms. The comparison of the costs versus the benefits forms what is collectively termed as the cost and benefits analysis.
When the costs outweigh the benefits, then the good should not be produced. When the costs are equal to the benefits, it means the business will break-even, so there will be no profits, it is advisable not to produce the good. Finally, when the benefits outweigh the costs, it is advisable to produce the good.
