1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anton [14]
3 years ago
9

Property taxes in a particular district are 4% of the purchase price of a home every year. If you just purchased a $250,000 home

, what is the present value of all the future property tax payments.
Business
1 answer:
avanturin [10]3 years ago
5 0

Answer:

Assume the interest rate used for discounting is 5%.

Then, the present value of all the future property tax payments is $200,000.

Explanation:

We have the annual property tax payment is calculated as: Purchased price * tax rate = 250,000 * 4% = $10,000.

The tax payment will form a perpetuity of $10,000 each ( that is: C = 10,000). We apply the formula for calculating present value of perpetuity with assumption that discount rate is 5% to come up with the answer as below:

PV = C/i = 10,000/5% = $200,000.

So, the answer is $200,000.

You might be interested in
Valley Designs issued a 90-day, 9% note for $42,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a
Aleks [24]

Answer:

1. July 21

2. $42,945

Explanation:

April 22 Start leaves 8 days left, and following the months would be like this:

8(April) + 31(May) + 30(June) + 31(July) = 100 days

Now because we only need 90 days in the period, we subtract the last 10 days off of July 31

31(July) - 10 days (July) = July 21

Maturity value = face amount (42,000) + interest (42,000 x 0.09 x 90 / 360)

42,000 + 945 = $42,945

8 0
2 years ago
Because customers have different needs and expectations, the key to distributive fairness in service recovery is
denpristay [2]

Answer:

Because customers have different needs and expectations the key distributive fairness in

resolve the problem quickly.

7 0
3 years ago
A service auditor's report on a service center should include a(n) :A. Detailed description of the service center's internal con
SashulF [63]

Answer:

The answer is letter A.

Explanation:

Detailed description of the service center's internal control.

4 0
2 years ago
Interorganizational systems are examples of _____.
Alex

Answer:

Information Systems that various organizations or companies use.

Explanation:

In the modern globalized world the economy and customers change constantly. The Inter-organizational systems (also know as IOS) are essential tools to obtain information on what is required to be able to meet the demands of a changing market, thus saving time and resources. It also provides helpful information for companies to make better investments. An IOS will be planned and placed strategically within organizations in which they will locate key points of contact to receive feedback and use that information to establish patterns in the market. This will enable organizations to make wise, informed decisions for the future because they can anticipate the customers´ needs.

4 0
2 years ago
Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor
Maru [420]

By using the ceteris paribus assumption, Taylor is holding the

  • holding all costs of production other than the wage rate constant
  • not considering retail price of laptop computers
<h3>What is ceteris paribus?</h3>

Ceteris paribus is a Latin phrase used in economics that means all other things being equal in English. It is used when studying the effect of one variable on another variable to mean that other variables that can affect the variable being studied is assumed to not change.

When Taylor is analyzing the effect of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, he is assuming that other factors that would affect the supply of laptops are assumed to be constant.

The other factors that might affect the  supply of laptop computers include:

  • cost of production
  • retail price of laptops

Here is the complete question:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Select the two correct answers below.

Select all that apply:

holding the supply of laptop computers constant

holding all costs of production other than the wage rate constant

holding wage rates constant

not considering retail price of laptop computers

To learn more about ceteris paribus, please check: brainly.com/question/13864080

#SPJ1

7 0
1 year ago
Other questions:
  • Movie production and marketing techniques began to shift in the 1970s, with studios investing more money in fewer films in the h
    6·1 answer
  • The total factory overhead for Big Light Company is budgeted for the year at $807,500. Big Light manufactures two different prod
    15·1 answer
  • Economists group commercial​ banks, savings and loan​ associations, credit​ unions, mutual​ funds, mutual savings​ banks, insura
    5·1 answer
  • Which of the following roles and attributes do NOT describe the core team members on a project? ​ a. Core team members join the
    11·1 answer
  • For​ 2018, Winters Manufacturing uses machineminushours as the only overhead costminusallocation base. The direct cost rate is $
    11·1 answer
  • Which is “harder” on a car, highway miles or city miles? Why?
    11·1 answer
  • The following information is available for Windsor, Inc. for the year ended December 31, 2020.
    15·1 answer
  • Scott invests money in fixing up his house, an endeavor that he expects will generate profits because he will be able to rent it
    8·1 answer
  • Which piece of office equipment can help keep sensitive information private?
    12·2 answers
  • At the __________ stage of transforming raw materials into finished goods, managers typically use __________ control methods to
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!