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Lunna [17]
3 years ago
7

A friend wants to borrow money from you. He states that he will pay you $2,700 every 6 months for 9 years with the first payment

exactly 5 years and six months from today. The interest rate is an APR of 7.3 percent with semiannual compounding. What is the value of the payments today?
Business
1 answer:
Travka [436]3 years ago
5 0

Answer:

The value of the payment today = $36,539.65

Explanation:

<em>An annuity is a series of equal payment or receipt occurring for certain number of period. </em>

<em>The payment in question is an example of an annuity .Hence the value of the payment today would be the present value of 2,700 annuity discounted at the appropriate interest rate </em>.

This is done as follows:

The Present Value of annuity = A ×  (1- (1+r)^(-n))/r

A- periodic cash flow-2,700, r- semi annual rate of interest - 7.3/2= 3.65%

n- number of period- (9×2) + 1= 19. Note that we have 19 "six months" in 9 years 6 months

PV = 2,700 × (1- (1+0.0365)^(-19))/0.0365 =36,539.650

The value of the payment today = $36,539.65

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Suppose you just bought a 25-year annuity of $8,200 per year at the current interest rate of 12 percent per year. What is the va
zhannawk [14.2K]

Answer:

64,313.74 ; 95,559.38 ; 47,283.11

Explanation:

by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

1. P=8,200, n=25, i=12%

a_{n} =8,200*\frac{1-(1+12\%)^{-25}}{12\%}

a_{n} =64,313.74

2. P=8,200, n=25, i=7%

a_{n} =8,200*\frac{1-(1+7\%)^{-25} }{7\%}

a_{n} =95,559.38

3. P=8,200, n=25, i=17%

a_{n} =8,200*\frac{1-(1+17\%)^{-25} }{17\%}

a_{n} =47,283.11

6 0
3 years ago
If the slope of a straight line is minus3 and if Y​ (the variable on the vertical​ axis) decreases by​ 6, then X​ (the variable
Sergio039 [100]

Answer:

X​ (the variable on the horizontal​ axis) will increases by 2.

Explanation:

The slope of a straight line is -3. So, m=6.

Slope of a straight line is

m=\dfrac{Rise}{Run}=\dfrac{\text{Change is y}}{\text{Change in x}}

Y​ (the variable on the vertical​ axis) decreases by​ 6.

Change is y = -6

We need to find the change in ​ (the variable on the horizontal​ axis).

Substitute the given values in the above formula.

-3=\dfrac{-6}{\text{Change in x}}

\text{Change in x}=\dfrac{-6}{-3}

\text{Change in x}=2

Note: All options are incorrect.

Therefore, X​ (the variable on the horizontal​ axis) will increases by 2.

5 0
3 years ago
The ______ must decide which tasks should be done in-house and which tasks should be done by subcontractors or consultants.
vitfil [10]

The answer to the blank space of the statement is project manager.

A project manager is a person whose <u>main responsibility is to manage the planning, procurement, and execution of a project from start to finish</u>. This also includes determining what milestones can be managed in-house (by people inside the company) or should be done by subcontractors or consultants.

8 0
3 years ago
A nation's long-run growth rate is equal to the sum of: Group of answer choices labor force growth and capital growth. growth in
jonny [76]

Answer:

labor force growth and productivity growth.

Explanation:

A country's long run growth rate is generally calculated by adding the increases in the market value of the goods and services produced within a country during a period of time. It is generally stated as a percentage growth of real GDP.

The real GDP's growth rate is determined by two factors: labor force growth and productivity growth. So it is determined by the growth in productivity, demographic growth and labor force participation.

7 0
3 years ago
Mark, an HR Manager at Pyramid Inc., is responsible for the HR planning process in his organization. He has reviewed the organiz
Oksana_A [137]

Answer: d. Assess external and internal workforce

Explanation:

There are four steps involved in the HR planning process in an organization. The first step is the one that Mark just completed of reviewing the organization's strategic plans.

The next thing to do is the assess both the internal and external workforce of the organization so as to better understand them. After this step he would have to compile HR planning forecasts and then design HR staffing plans based on the strategic goals of the organization.

7 0
2 years ago
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