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gavmur [86]
3 years ago
14

Suppose you just bought an annuity with 11 annual payments of $16,100 at the current interest rate of 12.75 percent per year. a.

What is the value of the investment at the current interest rate of 12.75 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What happens to the value of your investment if interest rates suddenly drop to 7.75 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What happens to the value of your investment if interest rates suddenly rise to 17.75 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business
1 answer:
noname [10]3 years ago
3 0

Answer and Explanation:

a. The value of the investment is shown below:

Given that,  

Future value = $0

Rate of interest = 12.75%

NPER = 11 years

PMT = $16,100

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $92,543.17

b. If the interest rate drop to 7.75%, so the present value is $116,344.48

c. If the interest rate rise to 17.75% so the present value is $75,670.82

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You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How
scoray [572]

Answer:

$1,000,000

Explanation:

The full question is shown below:

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)

In order to receive $80,000 per year forever, one needs to save the present value of the annual  cash flow using the present value formula for perpetuity as provided below:

PV of perpetuity=annual cash flow/annual interest rate

PV of perpetuity=$80,000/8%

PV of perpetuity=$1,000,000

8 0
3 years ago
Assume the following for a company whose sales are all on account: The total asset turnover is 1.8. The average total assets is
Sauron [17]

The average accounts receivable balance is closest to $120,000.

<h3>What is the average accounts receivable balance?</h3>

The average accounts receivable balance is the addition of beginning and ending accounts receivable divided by two.

For instance, if the average accounts receivable balance is $120,000, then the total accounts receivable is $240,000 ($120,000 x 2).

<h3>Data and Calculations:</h3>

Assets turnover = 1.8

= (Net sales/Average Total Assets)

Average total assets = $600,000

Accounts receivable turnover = 9.00

= (Net Sales/Average Accounts Receivable)

Net sales = $1,080,000 ($600,000 x 1.8)

Average Accounts Receivable = $120,000 ($1,080,000/9)

Thus, the average accounts receivable balance is closest to $120,000.

Learn more about average accounts receivable at brainly.com/question/23821865

7 0
2 years ago
Question 511 pts Advertising, personal selling, publicity, and sales promotion are collectively known as the Group of answer cho
mars1129 [50]

Advertising, personal selling, publicity, and sales promotion are collectively known as the (C) promotion mix.

<h3>What is the promotion mix?</h3>
  • To achieve a given marketing goal, a promotional mix is a combination of marketing strategies such as advertising, sales, public relations, and direct marketing.
  • Typically, the promotional mix is merely one component of a bigger marketing mix.
  • A promotion mix is an important strategy for delivering a relevant promotion message to each segment via the most appropriate channel.
  • Improves client communication.
  • Companies create a promotion mix in an attempt to speak their customers' language.
  • When properly prepared, it aids in the development of trust between the brand and its clients.

Therefore, advertising, personal selling, publicity, and sales promotion are collectively known as the (C) promotion mix.

Know more about the promotion mix here:

brainly.com/question/15496841

#SPJ4

Correct question:

Advertising, personal selling, publicity, and sales promotion are collectively known as the:

(A) product mix.

(B) distribution channels.

(C) promotion mix.

(D) marketing channels.

(E) product strategy.

6 0
1 year ago
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the
MA_775_DIABLO [31]

Answer:

20.91%

Explanation:

Operating Income:

= Operating Income of Retail Division + Operating Income of Wholesale Division

= $7,500,000 + $4,000,000

= $11,500,000

Operating Assets:

= Operating Assets of Retail Division + Operating Assets of Wholesale Division

= $37,500,000 + $17,500,000

= $55,000,000

ROI = (Operating Income ÷ Operating Assets) × 100

= ($11,500,000 ÷ $55,000,000) × 100

= 20.91%

6 0
3 years ago
How do i look today im going somewere soooooooooooooo
ahrayia [7]

Answer:

yEs kInG siempre facha

6 0
2 years ago
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