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
antoniya [11.8K]
3 years ago
8

Susan Orman wants to pay $1,550 semiannually to her granddaughter for 10 years for helping her around the house. If Susan can in

vest money at 4% compounded semiannually, how much must she invest today to meet this goal
Business
1 answer:
crimeas [40]3 years ago
6 0

Answer:

She needs to deposit $25,344.72

Explanation:

Giving the following information:

Semiannual payment= $1,550

Number of periods= 20 semesters

Interest rate= 0.04/2= 0.02

<u>First, we need to calculate the future value of the payments:</u>

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

A= Semiannual payment

FV= {1,550*[(1.02^20) - 1]} / 0.02

FV= $37,660.92

<u>Now, the present value (initial investment):</u>

PV= FV/(1+i)^n

PV= 37,660.92/1.02^20

PV= $25,344.72

She needs to deposit $25,344.72

<u>Prove:</u>

Annual payment= (PV*i) / [1 - (1+i)^(-n)]

Annual payment= (25,344.72*0.02) / [1 - (1.02^-20)]

Annual payment= $1,550

You might be interested in
Functional goals and strategies should be independent of divisional and corporate goals an strategies
chubhunter [2.5K]
The correct answer is b. False
6 0
3 years ago
Judy acquired passive Activity A in January 2013 and Activity B in July 2014. Until 2018, Activity A was profitable. Activity A
Crazy boy [7]

Answer:

Judy may deduct $54,000 of the net losses.

Explanation:

2018 Passive Activity Limitations $39,500

Passive Income ($33,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $6,000

2019 Passive Activity Limitations $69,500

Passive Income ($21,500) – loss allowed to the extent of passive income

Suspended Passive Activity Limitations $48,000

$54,000 Suspended Passive Activity Limitations

7 0
3 years ago
An all-equity firm is considering the following projects:
lakkis [162]

Answer:

A. Compared with the firm's 12 percent cost of capital, Project W has a_______expected return.

  • a. lower

1. Project X has a______expected return.

  • b. lower

2. Project Y has a_______expected return

  • b. higher

3. Project Z has a______expected return.

  • a. higher

B. Project W should be_______.

  • b. rejected

1. Project X should be______.

  • b. rejected

2. Project Y should be_______.

  • a. accepted

3. Project Z should be_______.

  • a. accepted

c. If the firm's overall cost of capital were used as a hurdle rate, Project W would be_______.

  • c. correctly rejected

1. Project X would be______.

  • c. correctly rejected

2. Project Y would be_______.

  • b. correctly accepted

3. Project Z would be________.

  • b. correctly rejected

Explanation:

Project    Beta     IRR        <u> expected return</u>

W             .62      9.2%       = 5% + (0.62 x 7%) = 9.34%

X              .77      10.3 %     = 5% + (0.77 x 7%) = 10.39%

Y            1.27       14.1 %      = 5% + (1.27 x 7%) = 13.89%

Z            1.42       17.0%     = 5% + (1.42 x 7%) = 14.94%

8 0
3 years ago
Explain the importants of marketing segmentation
Nina [5.8K]

A market segment is a subgroup of people or organizations that have one or more characteristics in common that cause them to have the same product needs. Everyone needs water to drink, but does everyone need bottled water? For companies to successfully reach their precise customer, they need to divide a market into similar and identifiable segments through market segmentation.

The main reason companies divide markets into identifiable groups is so that the marketing team can create a custom marketing mix for the specific group. For example, Farmer Joseph realized early on that not everyone would purchase his expensive organic produce. He did not want to exhaust his financial budget by advertising to the masses. Instead, he identified his target market and created a specific marketing plan to communicate effectively with his prime customers.

His target market consisted of females age 18-65, with an income of $50,000+, who have healthy eating habits and who are concerned about pesticides. His plan consisted of ad placement in local women's magazines, newspapers and also email blasts to a list that he formulated with age and income specifics. Lastly, he advertised with a local gym about his healthy produce. Marketers have numerous choices in how they can segment a market.

If the farmer had planned on targeting everyone, then the type of segmentation would have been called no market segmentation. The opposite type of segmentation would be if he decided to target based on every individual factor available. This would be called a fully segmented market. Other choices include segmenting just by gender, income, lifestyle, ethnicity, family life cycle, age group, or even a combination-type.

Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.

7 0
3 years ago
Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsof
Aleksandr [31]

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their relative advantage .

Option A

<u>Explanation: </u>

A product's dominance and market appeal over similar items. A competitive advantage is usually accomplished by giving better value to customers through either reducing prices or delivering added quality and service that justify higher costs.

That idea is based on consumer brand and product perceptions and does not necessarily reflect the actual characteristics of this product or service. The definition helps companies to consider that customers would choose to use this product or whether a rival would rather remain faithful to the already existing product.

8 0
3 years ago
Other questions:
  • Happy Monkey Manufacturing currently has 20,000 shares of common stock outstanding. Its management believes that its current sto
    7·1 answer
  • Which of the following includes volunteer work and damage from pollution in a country's goods and services? Which of the followi
    13·1 answer
  • Ernest is 42 years old and has been out of work for two months. he lost his position as a program manager when his company merge
    14·1 answer
  • Find the loan to loan ratio for a home appraised at 583,620 that the buyer will purchase for 585,000.
    10·1 answer
  • For each of the items indicate whether its amount affects the bank or book side of a bank reconciliation and is an addition or a
    11·1 answer
  • Sarah's optimism is both a contributor to and a product of her successful career accomplishments. This best illustrates self-ser
    15·1 answer
  • $500 at 3.2% for 3 years <br> $450 at 3.1% for 4 years<br> $515 at 3% for 3 years?
    8·1 answer
  • Wayo was interested in taking classes to become a certified yoga instructor. In order to earn the certification, he found out he
    11·1 answer
  • Each of the following is an example of a fixed expense EXCEPT:
    14·1 answer
  • Five business ideas that interest me are starting a pet sitting service, opening a place that help disabled pets, opening up a p
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!