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musickatia [10]
3 years ago
9

What is the present value of $1,200 to be received at the end of each month for 5 years if the discount rate is 6%?

Business
1 answer:
olya-2409 [2.1K]3 years ago
4 0

Answer:

PV= $62,070.67 = $62,071

Explanation:

Giving the following information:

Monthly payment= $1,200

Number of months= 5*12* 60

Discount rate= 0.06/12= 0.005

<u>To calculate the present value, we need to use the following formula:</u>

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

A= monthly payment

PV= 1,200*{(1/0.005) - 1 / [0.005*(1.005^60)]}

PV= $62,070.67

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Shuster’s lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord’s proof of the co
Assoli18 [71]

Answer:

correct option is c) with prompt notice.

Explanation:

solution

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so that Shuster is entitle to the withdraw an contract

correct option is c) with prompt notice.

4 0
3 years ago
Geno's Body Shop had sales revenues and operating costs in 2020 of $740,000 and $570,000, respectively. In 2021, Geno plans to e
Nataliya [291]

Answer:

$214,000

Explanation:

Total Revenues ($740,000 + $103,000) =$843,000

−Total Operating costs ($570,000 + $59,000)

=$629,000

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Therefore Assuming that there are no changes to the existing body shop business, operating profits would be expected to increase during 2021 by $214,000

7 0
3 years ago
Read 2 more answers
The production possibilities model illustrates an inverse relationship between two goods or services because
nikklg [1K]

Answer:

production of different types will compete for limited resources.

Explanation:

           The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.

           The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.

          An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.

6 0
3 years ago
Muy Bueno Bakery Company sells three different products. Currently they are not able to meet all of their customers' demand. Usi
cestrela7 [59]

Answer:

c. Pie

Explanation:

In order to determine which product is the most profitable, we must calculate the contribution margin per hour:

                                              Cake               Pie                      Cookies

contribution margin               $18                 $11                          $3

production time                        3                    1                           .30

contribution margin p/hour    $6                 $11                         $10

Pie is the most profitable product, followed by cookies, and cakes are the less profitable products.

4 0
3 years ago
Allocation of resources is inefficient only if:________
weqwewe [10]

Answer:

<em><u> we produce the goods and services that  people value less</u></em>

<em><u>Explanation:</u></em>

<em><u>Remember, </u></em> an inefficient activity is one that<em> fails</em> to achieve maximum productivity with minimum wasted effort.

Let's take for example a mobile producer (manufacturer) decides to allocate its resorces into producing<em> laptops.</em> However, it later determined that the allocated resources were inefficient since most consumers according to a  survey now prefer <em>tablet</em> <em>computers. </em>The company received low sales volume as result.

6 0
3 years ago
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