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ludmilkaskok [199]
3 years ago
9

Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. $200

per year for 10 years at 12%. $ 621.17 $100 per year for 5 years at 6%. $ $1,000 per year for 2 years at 0%. $ Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. $200 per year for 10 years at 12%. $ $100 per year for 5 years at 6%. $ $1,000 per year for 2 years at 0%. $
Business
1 answer:
PIT_PIT [208]3 years ago
4 0

Answer:

Normal:

$ 3,509.7470

$    563.7093

$ 2,000.00

Due:    

 $3,930.9167

 $   597.5319

 $ 2,000.00

Explanation:

We solve using the formula for common annuity and annuity-due on each case:

C \times \frac{(1+r)^{time} }{rate} = FV\\

C \times \frac{(1+r)^{time} }{rate}(1+rate) = FV\\ (annuity-due)

<u>First:</u>

C 200.00

time 10

rate 0.12

200 \times \frac{11+0.12)^{10} }{0.12} = FV\\

200 \times \frac{11+0.12)^{10} }{0.12}(1+0.12) = FV\\

Normal:  $3,509.7470

Due:       $3,930.9167

<u>Second:</u>

100 \times \frac{(1+0.06)^{5} }{0.06} = FV\\

100 \times \frac{(1+0.06)^{5} }{0.06} (1+0.06)= FV\\

$563.7093

$597.5319

<u>Third:</u>

No interest so no time value of money the future value is the same as the sum of the receipts regardless of time or being paid at the beginning or ending.

1,000  + 1,000 = 2,000

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Because the services are intangible, it is often difficult for the marketers to convey benefits to consumers.

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Question Suppose you have $200,000 in a bank term account. You earn 5% interest per annum from this account. You anticipate that
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Answer:

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Explanation:

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The correct answer is (A)

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The Goldfarb Company manufactures and sells toasters. Each toaster sells for $24.45 and the variable cost per unit is $16.65. Go
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