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
VARVARA [1.3K]
3 years ago
15

You are scheduled to receive annual payments of $11,100 for each of the next 24 years. Your discount rate is 10 percent. What is

the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year
Business
1 answer:
Lisa [10]3 years ago
3 0

Answer:

The difference in the present value is $988.32.

Explanation:

The difference in the present value can be calculated using the following 3 steps:

Step 1: Calculation of the present value if you receive these payments at the beginning of each year

This can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVA = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVA = Present value if you receive these payments at the beginning of each year = ?

P = Annual payments = $11,100

r = interest rate = 10%, or 0.10

n = number of years = 24

Substitute the values into equation (1), we have:

PVA = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10) * (1 + 0.10)

PVA = $10,871.54

Step 2: Calculation of the present value if you receive these payments at the end of each year

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PVO = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)

Where:

PVO = Present value if you receive these payments at the end of each year = ?

Other values are as defined in Step 1 above.

Substitute the values into equation (2), we have:

PVO = $11,100 * ((1 - (1 / (1 + 0.10))^24) / 0.10)

PVO = $9,883.22

Step 3: Calculation of the difference in the present value

This can be calculated as follows:

Difference in the present value = PVA - PVO = $10,871.54 - $9,883.22 = $988.32

You might be interested in
The company Lucy works for is made of cross-functional teams that focus on the project at hand. The projects they get are extrem
liberstina [14]

Answer:

Small batch and unit production.

Explanation:

Small batch and Unit production -

In this type of production , the primary focus of the organisation , is the satisfaction of the customer and is based on the preference of the customer .

For this type of manufacturing process , skilled labor and planning is very important to customize and prepare any good or service .

sometimes , the complete team focus on the production of the product one at a time , with lot of caution .

Hence , the information given in the question , the type of manufacturing process is best describes as Small batch and unit production .

6 0
3 years ago
A corporation reports the following year-end balance sheet data. The company's acid-test ratio equals:
Margaret [11]

Answer: 1.27

Explanation:

The acid test ratio of a company measure how well a company would be able to pay off its current liabilities using its most liquid current assets (current assets less inventory).

= (Cash + Accounts Receivable) / Current liabilities

= (40,000 + 55,000) / 75,000

= 95,000 / 75,000

= 1.27

8 0
3 years ago
The story in the video describes how the ceo of japan airlines, haruka nishimatsu, serves as an example of:
Anastaziya [24]
<span>the answer is several of the characteristics of a high performing strategic leader.

What unique about him is:
- He does not had a lavish lifestyle eventhough he held the most important position in the company.
- He let his office opened so all of his employees can get easy access to communicate with him
- He openly receive any ideas his employees gave to him as long as it's related to their growth as an organization.</span>
6 0
3 years ago
You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly
kykrilka [37]

Answer:

84%

Explanation:

APR is the annual rate of interest that is paid on an investment, without taking into account the compounding of interest within that year. APR is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.

Divide the finance charge by the loan amount. In this case, $3,400 divided by $24,500 equals 0.138

Multiply the result by 365 to get 50.4

Divide the result by the term of the loan. In this case, 50.4 divided by 60 is 0.84

Multiply the result by 100 to turn the answer into a percentage 84%

4 0
3 years ago
What is Virgo sign means
atroni [7]

Answer: Virgo is an earth sign historically represented by the goddess of wheat and agriculture, an association that speaks to Virgo's deep-rooted presence in the material world. Virgos are logical, practical, and systematic in their approach to life. ... Virgo is governed by Mercury, the messenger planet of communication.

Explanation: But I'm a Taurus and I'm the queen of all Zodiac signs

Leos are the Kings of all Zodiacl signs and I'm lucky I'm on the day of the Taurus zodiac change April 20th and my birth mineral is Crytal. Or Diamond

7 0
2 years ago
Other questions:
  • At orange​ photography, determining the purpose of your communication is paramount. this represents​ __________ of the writing p
    12·1 answer
  • Busch Company has these obligations at December 31. For each obligation, indicate whether it should be classified as a current l
    9·1 answer
  • The higher the percentage of the active ingredient in a drug
    12·1 answer
  • Sometimes it is necessary to _____ after installing a new software program and before using it the first time.
    5·2 answers
  • An agent that represents a cluster of manufacturers, e-tailers, and content providers organized around a life event or major ass
    8·1 answer
  • The average total cost of producing electronic calculators in a factory is $30 at the current output level of 220 units per week
    14·1 answer
  • Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be ca
    8·1 answer
  • In each of the following separate cases, indicate whether the company has entered into a finance lease or an operating lease. 1.
    10·1 answer
  • Brainliest ASAP helppppp please
    13·2 answers
  • That something unique your business should have which other business do not have ​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!