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solniwko [45]
3 years ago
13

Question 3 of 10

Business
2 answers:
Licemer1 [7]3 years ago
5 0

Answer:

C. impulse purchases

Explanation:

I just took the test

mixer [17]3 years ago
5 0

it's c. impulse purchases

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A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume t
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Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

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