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2 years ago

You are to receive the following payments at the end of the following periods:

Business

1 answer:

dangina [55]2 years ago

4 0

Answer: $12,113.14

Explanation:

Find out the future value of each payment 20 years from now then sum up the values.

Year 1:

= 250 * ( 1 + 15%)¹⁹

= $3,557.94

Year 2:

= 300 * ( 1 + 15%)¹⁸

= $3,712.636

Year 3:

= 450 * ( 1 + 15%)¹⁷

= $4,842.5688

Future value of all:

= 3,557.94 + 3,712.636 + 4,842.5688

= $12,113.14

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Whats the meaning of oligopoly and monopoly market structure

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The landlord of an office building charges tenants $150 per hour for extra HVAC usage after hours. During the last three years,

lidiya [134]

Answer:

$78,375

Explanation:

Actual HVAC usage = 500 + (500 × 10%) = 500 + 50 = 550

Total HVAC income before credit loss = 550 × $150 = $82,500

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Therefore, the approximate heating, ventilation, and air conditioning (HVAC) revenue the landlord will realize is $78,375.

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2 years ago

Suppose a U.S. Treasury bond will pay $2,500 five years from now. If the prevailing interest rate on 5-year Treasury bonds is 4.

Morgarella [4.7K]

Answer:

The value of the bond today is closest to $1648.85

Explanation:

The value of the bond today is closest to:

Present Value = FV / (1+i)^n *m

FV= 2500

I = 4.25 = 0.0425

N= 5

M= 2

The value of the bond today = 2500 / (1+0.0425) ^5*2

The value of the bond today = 2500 / 1.516214468

The value of the bond today = 1648.853256

The value of the bond today = $1648.85

5 0

2 years ago

an investor currently has 40,000 portfolio 40% of which is invested in bonds the investor wishes to add funds to the portfolio b

Marina86 [1]

Answer:

The value of the bonds that the investor should purchase=$10,000

Explanation:

Step 1: Determine current value of portfolio and bonds

Current value of portfolio=$40,000

Current value of bonds=40% of 40,000

Current value of bonds=(40/100)×40,000=$16,000

Step 2: Final value of bonds and portfolio

Final value of bonds=current value of bonds+added value of bonds

where;

current value of bonds=16,000

added value of bonds=X

replacing;

Final value of bonds=16,000+X

Final value of portfolio=current value of portfolio+added value of bonds

where;

current value of portfolio=40,000

added value of bonds=X

replacing;

Final value of portfolio=40,000+X

Step 3: Solve for X

Using the expression;

Proportion of bonds=(final value of bonds/final value of portfolio)×100

where;

proportion of bonds=52%

final value of bonds=16,000+X

final value of portfolio=40,000+X

replacing;

(52/100)=(16,000+X)/(40,000+X)

0.52=(16,000+X)/(40,000+X)

0.52(40,000+X)=16,000+X

20,800+0.52 X=16,000+X

(X-0.52 X)=20,800-16,000

0.48 X=4,800

X=4,800/0.48=10,000

The value of the bonds that the investor should purchase=$10,000

8 0

2 years ago