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Oksi-84 [34.3K]
3 years ago
10

Your uncle offers you a choice of $112,000 in 10 years or $51,000 today. Use Appendix B as an approximate answer, but calculate

your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $112,000
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

the present value of the $112,000 is $51,856

Explanation:

The computation of the present value is given below:

Present Value = Amount × Present value factor at 8% for 10 years

= $112,000 × 0.463

= $51,856

hence, the present value of the $112,000 is $51,856

We simply applied the above formula so that the correct amount could come

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Jamie would like to identify the similarities and differences among seven different types of flowers. Jamie should use a Venn di
expeople1 [14]

Jamie cannot use the Venn diagram as the best compare and contrast graphic organizer for his project. Thus, The correct answer is False.

<h3>What is a Venn diagram?</h3>

Venn diagram is used to compare elements of the same type. This includes cross-sectional circles where you write features that do not include each element, as well as the common ones.

This type of diagram is recommended when comparing two or three elements because you need a circle or space for each element, so it is not possible to compare several elements.

Thus, it is a lie to say that Jamie should use the Venn diagram in his project, because he needs to compare seven types of flowers and this does not happen using the Venn diagram, instead he should use a chart or similar that allows him to compare multiple elements. The correct answer is False.

To learn more about the Venn diagram, refer to the link:

brainly.com/question/26090333

6 0
2 years ago
An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005
kogti [31]

Answer:

a) $2000

b)  $1,886.7925

C) $2,036.7925

Explanation:

First, the question states to determine the expected claim cost per policy

Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.

A) Expected Claim Cost per policy

= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)

= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000

Part B: discounted expected claim cost per policy

Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate  (discounting used)

=$2,000 ÷ (1  + 0.06)

= $1,886.7925

Part C:: Determine the Fair Premium

Fair Premium is calculated as follows

The discounted policy claim cost + the Processing Cost per application + The fair profit loading

= $1,886.7925+ $100+50 = $2,036.7925

3 0
3 years ago
Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218
PIT_PIT [208]

Answer:

The correct answer is option (A) $519,799.59.

Explanation:

According to the scenario, the given data are as follows:

Payment 1st year = $218,000

Payment 2nd year = $224,000

Payment 3rd year = $238,000

Rate of interest = 14.5%

So, We can calculate the amount Southern Tours willing to pay by using following formula:

We add the payment for 3 years by simple interest as:

=  \frac{payment (1st year)}{1+r^{t1}  } +\frac{payment (2nd year)}{1+r^{t2}  }  + \frac{payment (3rd year)}{1+r^{t3}  }

=  \frac{218,000}{1+0.145  } + \frac{224,000}{(1+0.145)^{2}  } + \frac{238,000}{(1+0.145)^{3}  }

= $519,799.59

Hence, the amount Southern Tours willing to pay is $519,799.59.

4 0
3 years ago
1. The ratio of the money earned on an investment relative to the amount of the investment.
liraira [26]

i dont know high school

7 0
3 years ago
Use your knowledge of the common wind types to complete the blanks in the sentences below.
Liula [17]

Answer:

a). <u>Chinook</u> winds are created when cold air descending the sheltered (leeward) side of the Rockies is warmed by compression.

b). A circulation pattern consisting of a light wind blowing into the city from the countryside is characteristic of a <u>country breeze</u>.

c). A <u>sea breeze</u> is the result of the air over land heating, expanding, and rising, thereby creating a low-pressure area into which cooler air from over the ocean can move.

d). Heated air from mountain slopes gliding up along that slope results in a <u>Valley breeze</u>.

Explanation:

The given blanks have correctly been filled with terms matching the definitions provided. 'Chinook' is described as the descending warm, dry wind on the eastern side of the Rocky Mountains that generally blow from the southwest and can rapidly increase the temperature due to the much warmer air it brings. While country winds are the light winds that blow towards the city from surrounding countries. Sea breezes are defined as the air blowing off the sea on the nearby land and make the area cooler. Valley breeze is the warm air that blows up towards the slopes.

3 0
3 years ago
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