The amount by which Alex's deposit amount vary from Javier's if Alex also makes a deposit today, but earns an annual interest rate of 6.2 percent is $3381.39.
<h3>
How to calculate the value?</h3>
We use the formula:
A=P(1+r/100)^n
where
- A=future value
- P=present value
- r=rate of interest
- n=time period.
Hence future value Javier will be:
=$15000*(1.052)^27
=$58,954.40
For Alex:
58,954.40=P*(1.062)^27
P=58,954.40/(1.062)^27
=$11618.61
Hence difference will be:
=15000 - 11618.61
= $3381.39
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The prize is really worth $1,006,512.21.
<h3>What is present value?</h3>
Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000
The present value can be determined using a financial calculator
Cash flow from year 1 to 10 = $150,000
Discount rate = 8%
Present value = $1,006,512.21
Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.
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The correct answer for the question that is being presented above is this one: "An organization matches the amount deposited." An incentive for a person in order to contribute to an IDA is that an organization matches the amount deposited.
Answer: B. FIFO method
Explanation: The inventory prices of goods as calculated by a firm will remain the same at year end if a firm's inventory price is automatically updated on account of any additional inventory purchase and also if done on a periodic basis. This will occur only when the inventory pricing system is based on First-in-First-out method, whereby the prices of first inventory purchase is first associated or applied on goods sold until the unit in the inventory is exhausted. This allows prices of goods to move based on period of purchase where older prices gets precedence over the newer inventory purchase.
Answer:
The correct answer to the following question will be "$76,986".
Explanation:
Although the organization is reportedly going to pay $14.00 per unit, even before manufactured throughout the corporation, cost and save per unit will become the variation among current value as well as production costs without set rate. The cost of operating expenses will not be included to measure the gain because the idle resources of the company would be included and would not raise the fixed costs.
Therefore the cost differential would be as follows:
⇒ 
On putting the values in the above formula, we get
⇒ 
⇒ 
⇒ 
