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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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Answer:

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Explanation:

In point a:

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In point b:

Take into account the SR models of "IS-LM" and "AD-AS." 

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3 years ago
In the Land of Milk and Honey, they produce two goods: Milk and Honey. In 2014, milk cost $2 a gallon and they produced 10 gallo
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Answer:

Land of Milk and Honey

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= b. $40.

Explanation:

a) Data and Calculations:

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Cost per gallon in 2014   $2                 $1

Quantity produced           10                 20

Total production value  $20 ($2*10)  $20 ($1*20)    $40 ($20 + $20)

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Quantity produced           12                 24

Total production value  $24 ($2*12)  $24 ($1*24)    $48 ($24+ $24)

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Quantity produced           12                   24

Total production value  $30 ($2.50*12)  $30 ($1.25*24) $60 ($30 + $30)

The real GDP in 2014 is the calculated value of $40.  Using 2015 as the base year, there is no inflation since the unit prices of milk and honey remained the same in both years.

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Answer:

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