How much money does Bob the Brick-layer need for his material costs?
1 answer:
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In short, part A is from 1pm to 6pm, well, that's 5 hours, namely t = 5.
and part B is t = 12, so we simply plug those values in, nothing to it.
and round it up as needed if any.
and part B is t = 12, so we simply plug those values in, nothing to it.
and round it up as needed if any.
Answer:
5% Discount: $14,968.42
7% Discount: $12,099.56
Step-by-step explanation:
Since the discount rate is being compounded annually we can go ahead and use the Exponential Growth Formula, or in this case we will actually be using the Exponential Decay Formula since we are compounding a discount rate
Where:
- D is the present value
- a is the initial cash flow
- r is the discount rate in decimal form
- t is the span of time
Since we are looking for the present value in 10 years with a rate of 5%, we can plug these values into the formula and solve for D.
So the Present day value at 5% discount rate is $14,968.42 .
Now we can solve the equation at a 7% discount rate.
So the Present day value at 7% discount rate is $12,099.56
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