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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.

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Please write me and one page summary on successful qualities
cupoosta [38]

Answer:

Success cannot be determined by one single level, characteristic or mental attribute. If it were that simple, then everyone could be successful and there could be no use for the piece or thought mapping. Alternatively, success is quite a finely mixed mix of qualities, characteristics, and traits that if balanced in the right combinations can help you achieve the pinnacles of accomplishment.

Charisma is one of the most important traits of a successful individual. the one quality all successful people have is charisma. In order to aspire to such heights, it’s crucial to see why charisma is indeed essential for success. Charisma is not something you can learn somebody and not something someone will only get along this way.

Successful people are attentive. They pay attention to those things that many others are not focusing on. Imagine Warren Buffet buying a particular stock when every other person is selling. To be successful, you have to focus on the details with a keen eye. Stare at those opportunities that every other person is ignoring. The noun here is used in a positive context because it takes fierce passion to succeed. You must want it more than others do.

Another quality successful people have in common is their incredible willpower. It’s a quality that enabled them to successfully reach their goals. These highly successful individual recognize that success comes in all shapes and sizes.

The quality that runs consistent is that every successful person got where they are, by starting where they were. They played the hand that was dealt to them.

8 0
4 years ago
A 15-year, $1,000 par value zero-coupon rate bond is to be issued to yield 9 percent. Use Appendix B for an approximate answer b
REY [17]

Answer:

$274.54

Explanation:

Given:

n = 15 years

Future Value, FV = 1000

rate, r = 9%

Required:

Find the initial price of the bond

Given that we have a zero coupon bond here, it means the par value is paid at date of maturity, and no issuer pays no regular coupon payment.

To find the initial price of the bond, use the formula:

\frac{FV}{(1+r)^n}

Substitute figures:

\frac{1000}{(1+0.09)^1^5}

= \frac{1000}{(1.09)^1^5}

= \frac{1000}{3.642}

= 274.57

The initial price of the bond should be $274.54

7 0
3 years ago
For​ 2018, Franklin Manufacturing uses machineminus−hours as the only overhead costminus−allocation base. The estimated manufact
Kobotan [32]

Answer:

$7.5 per machine hour

Explanation:

The computation of the budgeted manufacturing overhead rate is shown below:

The budgeted manufacturing overhead rate = Estimated manufacturing overhead costs ÷ Estimated machine hours

= $300,000 ÷ 40,000 machine hours

= $7.5 per machine hour

In order to compute the budgeted manufacturing overhead rate we simply divided the estimated manufacturing overhead costs by the estimated machine hours.

7 0
4 years ago
Jeff Co. sells its giant cheese wheels for $36 per wheel. The contribution margin ratio is 75% and total fixed costs are $270,00
Damm [24]

Answer:

Level of sales in dollars in order to generate a profit of $54,000 Fixed cost + Target profit/Contribution per unit $270,000 + $54,0000/0.75

= $432,000

Number of units to be sold

= Level of sales/Selling price

= $432,000/$36

= 12,000 units

The correct answer is A

Explanation:

In this case, we need to calculate level of sales in dollars, which is fixed cost plus target profit divided by contribution margin ratio. Then, we will calculate no of units to be sold, which is the level of sales divided by selling price.

7 0
3 years ago
Explain why economics is often called the study of choices
sineoko [7]

Answer:

Ultimately, economics is the study of choice. Because choices range over every imaginable aspect of human experience, so does economics. Economists have investigated the nature of family life, the arts, education, crime, sports, law—the list is virtually endless because so much of our lives involves making choices.

5 0
2 years ago
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