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Licemer1 [7]
3 years ago
13

Stacy will receive equal annual payments of $30,000 with her first payment received in 3 years from today and her last payment r

eceived 9 years from today. Find the present value of these payments at the beginning of year 4 (end of year 3) if the interest rate is 7.2%
Business
1 answer:
jok3333 [9.3K]3 years ago
8 0

Answer:

$172,117.5529

Explanation:

In economics and finance, present value, also known as a present discounted value, is the value of an expected income stream determined as of the date of valuation.

Total years = 3 to 9 = 6years

Present value = future cash flow/(1+i)^n

Present value = $30,000 + $30,000/(1.072)^1 + $30,000/(1.072)^2 + $30,000/(1.072)^3 + $30,000/(1.072)^4 + $30,000/(1.072)^5 + $30,000/(1.072)^6

Present value = $172,117.5529

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Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with intere
Alex Ar [27]

Answer:

The correct answer is letter "A": Account A.

Explanation:

Compound interest is the interest an investor earns on the original investment plus all the interest earned on the interest that has accumulated over time. It is also called <em>interested on interested</em>. The frequency of compounding could be scheduled from daily to annually. The more frequent the compound interest is set, the most beneficial it is for the investor.

In that sense, account A will provide Julian with the highest annual return since it gives him a compound interest on a monthly basis v. annually with account B.

6 0
3 years ago
Page 529 16.3. what is supply-side fiscal policy? identify each policy action as being focused on the demand side, the supply si
boyakko [2]

Answer:

<em>From the example given,the 4 answer s to the question consist of both the demand and supply side, demand side, supply side.</em>

<em>It is explained better in the explanation box below.</em>

Explanation:

<em>Solution to the question</em>

<em> </em><em>Categories</em><em>          </em><em>Demand side</em><em>      </em><em> Supply side </em><em>            </em><em>Both</em>

<em>(1)Increasing spending on ‘Shovel ready”’ projects is on </em><em>Demand Side</em>

(2)Lowering income tax rates at all income level is Both

<em>(3)Research grant for a corporation developing new technologies is on </em><em>Supply side</em>

(4)Stimulus packages for firms that are too big to fail is on Demand Side

(5) Government funded scholarship for college students: is on Supply Side

6 0
3 years ago
Shopping malls, hotels, office parks, and residential areas that are located near the intersection of major highways are called
Norma-Jean [14]
The correct answer in the blank is the edge cities. The edge cities describe the following statement above because building like malls, hotels, parks and even residential areas that are found near to the major high ways intersections are called to be it.
5 0
3 years ago
A perfectly competitive firm produces​ 3,000 units of a good at a total cost of​ $36,000. The fixed cost of production is​ $20,0
kati45 [8]

Answer:

 A. ​Yes, it should continue to produce because the​ firm's revenues cover the total variable cost of​ $16,000. 

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. Market participants are price takers.

In the short run ,if price is less than average variable cost, the firm should shutdown.

Also, if total revenue is less than the total variable cost, the firm should shutdown into the short run.

Total revenue = $10 x 3000 = $30,000

Total cost = Fixed cost + variable cost

$36,000 = $20,000 + variable cost

Variable cost = $16,000

Total revenue is greater than total variable cost, so the firm should continue operations in the short run.

I hope my answer helps you

3 0
3 years ago
Trade between countries tends to Group of answer choices
S_A_V [24]

Answer:

Option (d) is correct.

Explanation:

Trade between the nations will result in an increase in both competition and specialization.

When the trade among the nations increases then as a result competition increases because consumers have more number choices due to imported products from the other nations. This will increase the competition.

We know that the trade is largely based on the comparative advantage. The countries exporting the product in which it has a comparative advantage and importing the products in which it has a comparative disadvantage. This will increase the specialization in the production of certain goods.

3 0
3 years ago
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