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
Troyanec [42]
3 years ago
8

A perpetuity has a PV of $ 29 comma 000. If the interest rate is 7​%, how much will the perpetuity paid every​ year

Business
1 answer:
Lady bird [3.3K]3 years ago
7 0

Answer:

The perpetuity payment per year was $2030

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

As we already know the present value of perpetuity and the required rate of return, we can input these values in the formula to calculate the annual perpetuity payment or cash flow.

29000 = Cash Flow / 0.07

29000 * 0.07  =  Cash Flow

Cash Flow = $2030

You might be interested in
Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point syste
fenix001 [56]

Answer:

Best reorder size = 216

Reorder point = 35

Explanation:

Required:

Using the above information, find the best order size and the reorder point.

To find the best order size, EOQ, use the formula:

EOQ = \sqrt{\frac{2DS}{H}}

= \sqrt{\frac{2*3500*50}{0.25*30}}

= \sqrt{\frac{350000}{7.5}}

= 216.02

Best reorder size is 216 mufflers

To find the reorder point, use the formula:

R = d' L + z \sigma_L

Where d' = average daily demand

L = lead time in days

z = number of standard deviation from a specified probability

\sigma_L = standard deviation of usage in lead time

Daily demand, d'= \frac{3500}{300} = 12

12 mufflers

Since lead time is 2 working days, standard deviation of lead time \sigma_L = \sqrt{2} * 6 = 8.48

Therefore,

R = d' L + z \sigma_L

= (12 * 2) + (1.28 * 8.48)

= 24 + 10.9

= 34.9

Approximately 35

Reorder point is = 35 mufflers

8 0
3 years ago
Functions of the economic commission for Africa.​
timofeeve [1]

Answer:

The main functions of the ECA include the study of problems of the economic and social development of the African countries, the promotion of the economic development of the African states, and the strengthening of their economic relations both with one another and with other countries.

4 0
3 years ago
Read 2 more answers
A tax on the buyers of coffee will a. decrease the price of coffee paid by buyers, increase the net price of coffee received by
coldgirl [10]

Answer:

d. increase the price of coffee paid by buyers, decrease the net price of coffee received by sellers, and decrease the equilibrium quantity of coffee.

Explanation:

A tax is an amount levied by the government on a good or service.

A tax increases the price of the good.

Burden of tax is borne by consumers and producers depending on who has the greater price elasticity.

A tax would increase the amount paid by consumers for a cup of coffee and reduce the amount received by suppliers.

A tax would reduce the quantity demanded and supplied, so equilibrium quantity would fall

I hope my answer helps you

6 0
3 years ago
One year ago, the Jenkins Family Fun Center deposited $4,800 into an investment account for the purpose of buying new equipment
posledela

Answer:

$25,778

Explanation:

During the first year, $4,800 were deposited. Using the future value of an investment formula, after one year, this amount becomes:

X = 4,800 (1+0.09)

  = 5,232

Now, they add $6,600 to that amount. Now we have a total of:

6,600 + 5,232 = 11,832

During year two, the amount above becomes:

X = 11,832 (1+0.09)

  = 12,897

And at the end of year two, $8,800 are added. Now we have a total of:

12,897 + 8,800 = 21,697

During years three and four, that amount finally becomes:

X = 21,697 (1+0.09)^2

   = 25.778

Thus, after four years, the Jenkisn Family Fun Center will have $25,778 to buy the equipment.

3 0
3 years ago
The decline of newspapers raises concerns because in comparison to television news, newspapers tend to contain more
Lunna [17]
<span>Newspapers tend to contain more facts. TV news is meant as entertainment, to capture an audiences interest and hold it, whereas newspapers are intended to educate, and do only that. Newspapers are not intended to be read fully because no one like all of the different sections, sports, cartoons, politics, science, etc. But TV needs to hold interest to all viewers to remain on the air and capture its viewers attention.</span>
4 0
3 years ago
Other questions:
  • One major benefit of using the Bank Feeds feature in QuickBooks Online is that as you _________________ or __________________ tr
    8·1 answer
  • Under Life Solicitation Rule, the definition that applies to a consumer that is most concerned about death benefit proceeds to b
    14·1 answer
  • 9. Suppose an investor has two choices:Choice 1: invest in a Bond A which is a 2-year bond with an interest rate of 12% Choice B
    12·1 answer
  • Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hand
    7·1 answer
  • An effective price ceiling is best defined as a price:
    5·1 answer
  • Nathan buys a new microwave for $200. The microwave’s label bears a disclaimer that the manufacturer is not liable for consequen
    8·1 answer
  • Suppose that Spain and Sweden both produce fish and wine. Spain's opportunity cost of producing a bottle of wine is 4 pounds of
    15·1 answer
  • The Guitar Shoppe reports the following sales forecast: August, $110,000; September, $190,000. Total sales includes 30% cash sal
    12·1 answer
  • Colbert Inc. acquired 100% of Stewart Manufacturing on January 2, 2020. During 2020, Colbert sold Stewart $640,000 of goods, whi
    15·1 answer
  • Which of these is not a cost of quality?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!