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KonstantinChe [14]
3 years ago
13

You have just signed a contract for your rental property and you will make monthly payments at the beginning of each month. Your

monthly payments is $1000 and the monthly rate is 4% per month. Calculate the present value of your rental payments for the first year.
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

$9,760.48

Explanation:

Present value of annuity due = P* [[1 - (1+r)^-(n-1)] / r] + P. Where P = Periodic payment = $1,000, r = Rate of interest per period 4% (0.48/12), n = number of payments 12 (12*1)

Present value of annuity = $1000 * [[1 - (1 + 0.04)^-(12-1)] / 0.04] + $1000

Present value of annuity = $1000*8.760475 + $1000

Present value of annuity = $8760.48 + $1000

Present value of annuity = $9,760.48

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5 0
3 years ago
The futures price of gold is $1,000. Futures contracts are for 100 ounces of gold, and the margin requirement is $3,000 a contra
Dmitry [639]

Answer:

a. The initial remittance is the same as the initial margin requirement of $3,000.

b. The profit is;

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= $500

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= 500/3,000

= 16.67%

c. The loss is;

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d. If the futures price declines to $984, what must the speculator do?

Depends on if the maintenance requirement is still below the balance.

= 3,000 - 100 * (1,000 - 984)

= $1,400

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= 3,000 - 1,400

= $1,600

Speculator should deposit $1,600.

e. = 3,000 - 100 (1,000 - 982)

= $1,200

8 0
3 years ago
A budget primarily comprises two categories, including what
Blizzard [7]

Well there are basically three types of budgets such as balanced budget, surplus budget and deficit budget

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3 0
3 years ago
Since the middle of the 20th century, the international global business system has been shaped by global institutions. Countries
harina [27]

Answer:

a. True

Explanation:

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6 0
3 years ago
Why is accounting a service industry?
Y_Kistochka [10]
Hi there.

I recently learned in Social Studies that services are usually intangible services. They have value, but you cannot physically touch them.

I'm also using the process of elimination. With that, I give you my best guess:


A. Because it provides support but no tangible goods.

Hope this works out for ya!


3 0
4 years ago
Read 2 more answers
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