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
Alex73 [517]
3 years ago
15

A 15-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 10 percent compoun

ded monthly for the first six years and 8 percent compounded monthly thereafter. What is the present value of the annuity
Business
1 answer:
Lana71 [14]3 years ago
6 0

Answer:

162075.97 dollars.

Explanation:

The time period of annuity = 15 years

Annuity amount = $1300 per month

The interest rate for the first six-year = 10%

Monthly interest rate = 10% / 12 = 0.83%

Thus number pf periods = 6 * 12 = 72  

Interest rate for another 9 years = 8%

Monthly interest rate = 8% / 12 = 0.67%

Number of period = 8 * 12 = 96

Use the below formula to find the present value of the annuity.

\text{Present value of annuity} =\frac{A(1-(1+r)^{-n})}{r} \\\\= \frac{1300(1-(1+0.0083)^{-72})}{0.0083} + \frac{1300(1-(1+0.0067)^{-96})}{0.0067} \\= 162075.97 dollars.

You might be interested in
Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is charged with $120,000 of direct materi
Marizza181 [45]
Total manufacturing costs=direct material+direct labor+manufacturing overhead

Calculate direct labor
Let direct labor be x
120%=1.2
1.2x=180000
Divide both sides by 1.2
X=180,000÷1.2
X=150,000 direct labor

Total manufacturing costs=
120,000+150,000+180,000
=450,000...answer

Hope it helps!
5 0
3 years ago
The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Month Num
GuDViN [60]

Answer:

following a linear equation:

y = mx + b

if we use July's data:

y = $0.0882m + 500

where

y = total cost

m = number of copies

the slope = 1 / 11.3333 = 0.0882

Explanation:

Month          Number of Copies       Total Copy Cost

January            46,000                          $4,600

February          42,000                          $4,400

March              58,000                           $5,300

April                 64,000                           $6,300

May                  57,000                          $5,000

June                62,000                           $5,800

<u>July                 68,000                           $6,500 </u>

August            71,000                            $7,300

y = mx + b

6,500 = 68,000x + 500

x = variable cost per unit = (6,500 - 500) / 68,000 = $0.088235294 per copy ≈ $0.0882 per copy

the equation would be:

y = $0.0882m + 500

the slope = 1 / 11.3333 = 0.0882

8 0
3 years ago
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16
Sergio [31]

Answer:

14,275= actual hours

Explanation:

Giving the following information:

The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.

During a recent period, 1,000 cranes were made.

The labor efficiency variance was $4,400 Unfavorable.

To determine the actual hours worked, we need to use the direct labor efficiency variance formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

-4,400= (14*1,000 - actual hours)*16

-4,400= 224,000 - 16actual hours

228,400/16= actual hours

14,275= actual hours

4 0
3 years ago
Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest
tiny-mole [99]

Answer:

A: The supply of loanable funds curve

B: left

C: Increase

Explanation:

If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>

The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.

Cheers!

8 0
3 years ago
The person or company that owns the insurance policy is<br> called what?
marishachu [46]

Answer:

The policy-holder is the person that owns the insurance policy.

8 0
4 years ago
Other questions:
  • On May 11 Sydney accepts delivery of $20,500 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10,
    5·1 answer
  • Explain the benefit to a business of undertaking some steps of one project simultaneously
    13·1 answer
  • From society's point of view the economic function of profits and losses is to:_______.
    8·1 answer
  • Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency u
    6·1 answer
  • Brenda Kraft has proven herself to be an able manager. Her section has a high project completion rate with the highest-quality p
    8·1 answer
  • When a country chooses to limit the kinds of goods or services it produces, it is practicing
    5·2 answers
  • During January of Year 6, Doe Corp. agreed to sell the assets and product line of its Hart division. The sale was completed on J
    13·1 answer
  • Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microch
    15·1 answer
  • Examine the quarterly sales data in a little different way. Contruct two pie charts, one for sales in 2012 and the other for sal
    15·1 answer
  • What is meant by 'Price elastic demand?​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!