Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Answer:
Which of the following is true if you decide to take the vacation?
(B) The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
Explanation:
The benefits of going on the vacation exceed the benefits you would obtain from the new computer.
The cost of going on the vacation is less than the cost of the computer.
Product-service bundling is adding Value-added services to a firm's product offerings to create more value for the customer.
Answer:
<em>Traditional savings account</em>
Explanation:
A Traditional savings account is a banks or other financial institution's interest-bearing deposit fund.
While these accounts usually pay a moderate rate of interest, their stability and efficiency make them a decent option for short-term saving cash that you want.
Traditional savings accounts have some constraints on how many times one can withdraw money, however they usually offer outstanding versatility that is suitable for developing an emergency savings, or merely sweeping excess cash that you don't need in your checking account so you can earn more interest somewhere else.
D. would be the correct answer I believe!
