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
musickatia [10]
2 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]2 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

You might be interested in
Many people moved to the Sunbelt to take new jobs in
Lisa [10]


Among the choices above the main reason why many people migrate to Sun belt is to work on the fields of <span>aerospace and electronics this is because of the fast development </span>of the industries in Sun belt and great opportunity are waiting for the migrates. <span>
</span>
4 0
2 years ago
Read 2 more answers
Cheetah Copy purchased a new copy machine. The new machine cost $134,000 including installation. The company estimates the equip
RSB [31]

Answer:

1,000.12

Explanation:

4 0
2 years ago
Becoming more efficient and minimizing start-up costs are ways to
Naddika [18.5K]
The correct answer is d
5 0
3 years ago
When creating text ads to advertise a client's small chain of italian restaurants, what should you include in the ad text to mak
Brut [27]
When creating advertisement for an Italian restaurant, you should include information about Italian food in the  description. This will serve to arouse the interest of the reader and compel them to patronize the restaurant.  
4 0
3 years ago
Read 2 more answers
To find the annual rate of return on any given stock, add the stock's dividend for the year plus the change in the stock's price
katrin2010 [14]

Answer:

The statement is: True.

Explanation:

The Annual Rate of Return or Yearly Rate of Return is the amount earned over an investment within one year. It is typically represented as a percentage and takes into consideration capital appreciation and the payment of dividends. The formula to calculate the annual rate of return is the following:

Annual Rate of Return = (EYP - BYP)/BYP X 100%

Where:

EYP = End of year price

BYP = Beginning of year price

8 0
3 years ago
Other questions:
  • Blossom Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually
    12·1 answer
  • Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, suc
    6·1 answer
  • Through what process can special interest groups and businesses influence the government?​
    8·1 answer
  • YZ Corporation, located in the United States, has an account payable of 750-million yen payable in one year to a bank in Tokyo.
    13·1 answer
  • Identify the career described in the example
    13·2 answers
  • Which of the following crimes, by definition, involves the use of fear or Force
    12·1 answer
  • Which of the following is an example of a final good or service?
    7·1 answer
  • In an organization, the functional level is made up of ________, which provide specific and focused strategic direction.
    15·1 answer
  • Sustainability of an advantage is the ability of a firm to protect its competitive advantage. truw or flase
    14·1 answer
  • summary information from the financial statements of two companies competing in the same industry follows. ryan company and barc
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!