$285 x 12 = $3,420 deductions
I got the 12 from the months in a year that she paid $285.
The index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Given that the index method of cost estimation is given by an=ck(in/ik).
We are required to give the time or situation in which we have to use index method to determine the cost.
A cost index is basically a ratio of the cost of something today to its cost at some time in the past. As such, it is a tool which is used to estimate the cost of things today based on their cost some time ago.
From the definition of cost index we can say that the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past. This method is basically used in statistical or economics departments of the government of a country.
Hence the index method of cost estimation is used when we want to do the comparison between the cost of something today with the cost in the past.
Learn more about index method at brainly.com/question/28016640
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Answer:
Option B has a higher present value at time zero is correct
as shown below:
Option A future value at the end of three years = 2000*(1.06)^2+5000*(1.06)^1+5000*(1.06)^0= $12,547
Option B future value at the end of three years = 4000*(1.06)^2+4000*(1.06)^1+4000*(1.06)^0=$12,734
Option B has higher future value as determined above, so first option is wrong.
Option A present value at time zero = 2000/(1.06)^1+5000/(1.06)^2+5000/(1.06)^3= $10,535
Option B present value at time zero = 4000/(1.06)^1+4000/(1.06)^2+4000/(1.06)^3=$10,692
Option B has higher present value as determined above, so second option is correct.
Third option is wrong as Option B is not perpetuity as B has three years life.
Fourth option is wrong as Option A is not ANNUITY as A CASH FLOW amounts is not equal , it varies on annual basis.
Answer: ok I can help but where is the question? :)
Explanation: