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strojnjashka [21]
3 years ago
7

Find the lump sum deposited today that will yield the same total amount as this yearly payment (made at the end of each year for

20 years at the given interest rate, compounded annually).
Business
1 answer:
Oduvanchick [21]3 years ago
6 0

Answer:

$129,108.10

Explanation:

Missing word <em>"$9500 at 4%"</em>

<em />

Present Value of the amount to be deposited P = ?

Annual Year end payment A = $9,500

Rate of interest r = 4% compounded annually

Period of payment n = 20 years

P = A * [1- (1/(1+r)^n)] / r

P = $9500 * [1 - (1/(1+0.04)^20)] / 0.04

P = $9500 * [1-(1/(1.04)^20)] / 0.04

P = $9500 * [1 - (1/2.191123143)] / 0.04

P = $9500 [1 - 0.45638695] / 0.04

P = $9500 * 0.5436131 / 0.04

P = $9500 * 13.590326

P = $129,108.1003

P = $129,108.10

So, the lump sum deposited today is $129,108.10.

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For the past 15 years you have been depositing $700 per month in the PIMCO bond fund, and you have now transferred your current
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Answer:

To determine the total amount of money that I will have in my account at the time of my retirement, we must consider the total amount paid into the PIMCO account during the last 15 years, and add to this value the potential amount to be paid in the next 20 years in the Vanguard account.

Thus, during the previous 15 years, I have deposited 700 dollars per month in my PIMCO account, with which I have a cumulative total of $ 126,000 (700x12x15). Also, I will potentially deposit another $ 168,000 (700x12x20) in the Vanguard account for the next 20 years.

Therefore, over the 35 years of savings, once the time has come to retire, I will have $ 294,000 in my retirement investment.

7 0
3 years ago
A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the co
Darya [45]

Answer:

profitable customer

Explanation:

A profitable customer of a business enterprise is any economic agent which include individuals, firms and government for which the revenue generated from servicing or supplying them goods and services exceeds the entire cost incurred in providing such service or goods.

A successful business is one that is able to maintain a data base and record of all the customers and identify the profitable ones so as to concentrate on them to achieve maximum profit.

6 0
3 years ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
Sergio039 [100]

Answer:

Option (A) is correct.

Explanation:

Given that,

Implicit costs per week = $200,000

Average explicit cost per banana = $0.25 per banana

Per week bananas sold = 1 million

Explicit cost = Average explicit cost per banana × No. of banana sold

                    = $0.25 × 1,000,000

                    = $250,000

Total revenue = No. of banana sold × Selling price of each banana

                        = 1,000,000 × $0.50

                        = $500,000

Accounting profit = Total revenue - Explicit cost

                             = $500,000 - $250,000

                             = $250,000

Economic profit:

= Total revenue - Explicit cost - Implicit costs

= $500,000 - $250,000 - $200,000

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5 0
3 years ago
There are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the f
Softa [21]

Based on efficiency, the businesses that should cut hair are the A and C; moreover, to meet the demand, each firm will need to offer at least two haircuts.

The supply of a product or the units of a product that is offered to potential customers should always meet the number of real customers. In the same way, the price of the product should meet the price customers are willing to pay.

In this context, the best is that only firm A and C cut hair, this is because their prices per cut ($25 and $30) match the consumers' willingness to pay this includes Lorenzo ($35), Gilberto ($50), Juanita ($40) and Neha ($25).

  • Firm A can cut Neha's and Lorenzo's hair
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Moreover, this implies each firm needs to do at least 2 haircuts to cover all the possible customers.

In the case of firms B and D, the price per cut is high ($40 - $45). Based on this,  they should not cut hair as only a few customers can pay for this service, and this would be inefficient.

Learn more in: brainly.com/question/13225200

4 0
2 years ago
Alfonzo's Italian House has 25,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a shar
Liono4ka [1.6K]

Answer:

$18

Explanation:

6 0
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