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Pavlova-9 [17]
3 years ago
12

You are given an annuity-immediate paying 10 for 10 years, then decreasing by one per year for nine years and paying one per yea

r thereafter, forever. The annual effective rate of interest is 4%. Calculate the present value of this annuity.
Business
1 answer:
tankabanditka [31]3 years ago
6 0

Answer:

124.17

Explanation:

since the first payment is immediate, then this is an annuity due:

we must divide this annuity into 3 separate parts:

1) today plus 9 years = PV = 10 x 8.43533 (PV annuity due, 4%, 10 periods) = 84.3533

2) the second group of years where annuity decreases by $1

PV year 10 = 9/1.04¹⁰ = 6.08

PV year 11 = 8/1.04¹¹ = 5.20

PV year 12 = 7/1.04¹² = 4.37

PV year 13 = 6/1.04¹³ = 3.60

PV year 14 = 5/1.04¹⁴ = 2.89

PV year 15 = 4/1.04¹⁵ = 2.22

PV year 16 = 3/1.04¹⁶ = 1.60

PV year 17 = 2/1.04¹⁷ = 1.03

sum of PVs = 26.99

3) terminal value at year 17 = 1/0.04 = 25

PV of terminal value = 25/1.04¹⁷ = 12.83

now we add the three parts = 84.3533 + 26.99 + 12.83 = 124.17

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Answer:

A. True.

Explanation:

Making a comparison among countries of GDP per capita and Ireland and Singapore show higher values than the United Kingdom and France and this is because these two countries have experienced long periods of rapid growth with ratas higher than growth population. The United Kingdom and France, as mature economies economically growth also, but at a lower rate

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The journal entry to issue​ $600 of direct materials and​ $30 of indirect materials to production involves​ debit(s) to the​ ___
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Work-in-process inventory refers to a company's goods that are waiting to be finished and completed. While these goods wait to be finished, they are waiting their overall value they are given as well. Manufacturing overhead refers to the items that are used for manufacturing. Everyting that has to take place and be paid for manufacturing to take place.

7 0
3 years ago
On January 1, JC Co. accepted a 60-day, 6%, note in the amount of $10,000 from a customer. On March 2, the due date of the note,
sammy [17]

Answer:

Cash account in the amount of $10,100

Explanation:

The journal entry to be recorded for the receipt of payment is as:

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Being recoded the receipt of payment

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Answer:

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8 0
3 years ago
Which of the following was not used in support of the continental drift hypothesis?
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Alfred Wegener was the scientist who proposed the Continental Drift Theory in the early twentieth century. Simply put, his hypothesis proposed that the continents had once been joined, and over time had drifted apart. I hope my answer has come to your help. God bless and have a nice day ahead!
3 0
3 years ago
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