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gulaghasi [49]
3 years ago
10

A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume t

hat the general inflation rate is 18.3% and the market interest rate is 18.3% during this inflationary period.
The equivalent present worth of the series is:_________.
Business
1 answer:
Vinil7 [7]3 years ago
8 0

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

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Chuck has $2,500 invested in a bank that pays 4% annually. The length of time it will take for his funds to double is closest to
Arada [10]

Answer:

The answer is 17.67 years.

Explanation:

Present value is $2,500

Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)

Interest rate is 4%

Number of years or periods to reach this $5,000 is unknown. So we are looking for this.

To compute this number of periods, lets use Financial calculator.

I/Y = 4; PV= -2,500; FV= 5,000; CPT N= 17.67 years.

Therefore, the number of years to accumulate to $5,000 is 17.67 years

7 0
3 years ago
A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency im
Lubov Fominskaja [6]

Answer:

Small

Explanation:

Fixed costs are the costs that do not change when output level changes, while variable costs are costs that change as output quantity changes.

When a production process is capacity constrained, it implies that there is a factor that does not allow it to produce more output. Examples of such factors are minor bottlenecks, constrained designs and resources, and others.

A process is said to be efficient when it can avoid waste of resources in producing desired output.

Efficiency improvement therefore occurs when more output can be produced with less resources.

In the question, given that the process is currently capacity-constrained, efficiency improvement will result in producing more output at higher costs because of high variable costs despite that the process has low fixed costs.

As a result, the impact of an efficiency improvement will be small because producing more output will result in incurring higher cost due to high variable costs that change as quantity of output changes. That is, the impact of efficiency improvement will be small because high variable costs with low fixed cost will result in higher production cost.

3 0
3 years ago
Net sales revenue for 2024 was and for 2025 was . what is the percentage of increase or decrease in net sales revenue for the tw
polet [3.4K]

The percentage of increase or decrease in net sales revenue  a decrease is 15.45%

Sales in 2024 = $110000

Sales in 2025 = $93000

Decrease in sales between two periods = ($110000 - $93000) = $17000

Percentage of decrease in sales = [($17000 / $110000 Base year) X 100]

=> 15.45% decrease in net sales revenue from 2024 to 2025

Net sales are gross sales generated by the business, excluding returns, rebates, and rebates. This number is used by analysts when making business decisions or analyzing a company's revenue growth.

Total sales are not adjusted for returns, rebates, and rebates. The earnings reported on the top line of a company's income statement are net earnings. Net sales are also known as net sales, net sales, or sales.

Revenue is the total amount of revenue from sales for a specific period. Quarters. Sales may be reported as net sales as they may include discounts and deductions from returned or damaged merchandise.

Learn more about  net sales revenue here:

https://www.plagiarismremover.net/

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6 0
2 years ago
Ashlynn heard that as a general rule, she should spend no more than one week's pay on rent. If Ashlynn's salary is $32,400 per y
Trava [24]
The answer is A.$623.
4 0
3 years ago
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Schach [20]

Answer:

The correct answer is

Juan has dividend income of $250,000.

good luck ❤

6 0
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