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
oksian1 [2.3K]
3 years ago
8

Suppose you are going to receive $12,000 per year for five years. The appropriate interest rate is 9 percent. a-1. What is the p

resent value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a-2. What is the present value of the payments if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-1. Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b-2. What is the future value if the payments are an annuity due? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c-1. Which has the higher present value, the ordinary annuity or annuity due? c-2. Which has the higher future value?
Business
1 answer:
shusha [124]3 years ago
3 0

Answer:

What is the present value of the payments if they are in the form of an ordinary annuity?

Discount all cash flows

12,000/1.09=11,009

12,000/1.09^2=10,100

12,000/1.09^3=9,266

12,000/1.09^4=8,501

12,000/1.09^5=7,799

Add all these discounted cash flows= $46,675 is the present value of ordinary annuity

a-2. What is the present value of the payments if the payments are an annuity due?

In an annuity due payment is made at the beginning of the year so we subtract one from each compounding period so,

12,000/1.09^0=12,000

12,000/1.09=11,009

12,000/1.09^2=10,100

12,000/1.09^3=9,266

12,000/1.09^4=8,501

add all these discounted cash flows = $50,876= PV of annuity due

FV of ordinary annuity

PV= 0

PMT=12,000

I= 9

N= 5

FV=? Put these in financial calculator= $71,816

Fv of annuity due=

12,000+

PV=0

PMT=12,000

I=9

N=4

FV=?=66,877

Pv  of annuity due is higher and FV or ordinary annuity is higher.

Explanation:

You might be interested in
In business, it is important to establish your _____ from your first day on the job
Alchen [17]

In business, it is important to establish your credibility from your first day on the job.

Gaining a reputation enables you to speak more persuasively and with greater ease. Work results and financial success are significantly impacted by the degree of trust in working relationships.

<h3>Why is it important to gain credibility?</h3>

Employee mistrust and disengagement are caused by ineffective leadership, which affects the organization's revenue as well as its reputation. According to studies, a leader's trustworthiness affects employee engagement, which in turn affects the performance and productivity of the firm.

your well-deserved reputation as a reliable person who does their work well cares about the people they work with and for, upholds high moral standards and values both personally and professionally, and keeps their word. The extent to which others trust or believe in you is referred to as credibility.

Learn more about credibility here:

brainly.com/question/8669599

#SPJ1

7 0
1 year ago
Outlines are effective because they
storchak [24]
An outline<span> is like a map showing the best path. ... wants to present -- arranged in the order the writer thinks will be most </span>effective<span>. ... Then they write the </span>outline<span>, to see if one paragraph leads smoothly to the next, or if they've left something out. .... They are useful </span>because they<span>: help the writer organize their thoughts before ... your answer is in this paragraph </span>
8 0
3 years ago
Read 2 more answers
Which multimedia and animation professional would you require to create this image for an animation sequence about a lost zebra?
Anon25 [30]
<span> storyboard artist background</span>
6 0
3 years ago
Read 2 more answers
Pilar uses a unique product number for each product in her inventory. she makes the product number ____.
8090 [49]
Based on the question, Pilar was creating a database for her business.
The choices are: a. a table b. the primary key c. a database d. a record

I believe the answer is b. the primary key. 

<span>A primary key is a known as a unique record used in creating a license number or a telephone number. This is used in a relational database where there is only one primary key used as </span>
5 0
3 years ago
Aaron is proud of the traits associated with his countrymen. They are generally perceived as adventurous with a pronounced incli
bonufazy [111]

Answer:e) uncertainty avoidance

Explanation:

Uncertainty Avoidance refers to how people of different cultures respond to changes or the unknown based on their level of tolerance.

People of different cultures respond or reacts differently when unplanned situations occurs.

Uncertainty Avoidance relates to the level to which individuals of a particular community are comfortable with uncertainty and the unknown.

People who belong to cultures with high uncertainty avoidance try to reduce the occurrence of unknown circumstances and to proceed with careful changes step by step by planning and by implementing rules and regulations. They have very low tolerance for change WHILE people who belong to low uncertainty avoidance culture accept and feel comfortable in unplanned situations and try to have as few rules as possible. They have high tolerance for change.

6 0
3 years ago
Other questions:
  • A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unproces
    12·1 answer
  • Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Ov
    5·1 answer
  • Which of the following climate zones would be best suited for a year-round agricultural cycle?
    9·1 answer
  • Which of the following is not a problem associated with monetary​ policy? A. Monetary policy may be ineffective if investment an
    14·1 answer
  • What are companies that have low customer contact and are capital intensive; yet provide a service, called? A. quasi-manufacturi
    15·2 answers
  • Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weav
    10·1 answer
  • (I) Countries with more economic freedom during the past quarter of a century had a lower average per capita GDP.(II) Countries
    11·1 answer
  • Alex and J.J. Both apply for two job openings in the same department at a law firm in Chicago. They both interview very well and
    15·1 answer
  • The Sausage Hut is looking at a new sausage system with an installed cost of $187,400. This cost will be depreciated straight-li
    10·1 answer
  • In what decade was the first price scanner installed?.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!