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Len [333]
3 years ago
8

4. An investment offers $10,000 per year for 20 years. If an investor can earn 6 percent annually on other investments, what is

the current value of this investment
Business
1 answer:
telo118 [61]3 years ago
8 0

Answer:

PV= $114,699.21

Explanation:

Giving the following information:

Annual payment= $10,000

Number of years= 20

Interest rate= 6%

<u>To calculate the present value, we need to use the following formula:</u>

PV= A*{(1/i) - 1/[i*(1 + i)^n]}

A= annual payment

PV= 10,000*{(1/0.06) - 1 / [0.06*(1.06^20)]}

PV= $114,699.21

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The Great Recession, a sharp economic downturn that begun in 2008, brought high unemployment, increased business failures, and a
Molodets [167]

According to Joseph Schumpeter, the stage that is described above is the Recovery stage.

<h3>What happens in the recovery stage?</h3>
  • The country begins to recover from the negative economic conditions of the depression.
  • Signs of stability will begin to appear.

In the recovery stage, economic activity will start to rise as there will be more production of goods and services.

Unemployment will also begin to drop as more companies hire people to produce. They will in turn increase spending which would further stimulate the economy.

In conclusion, this is the recovery stage.  

Find out more on the recovery stage at brainly.com/question/3951038.

8 0
2 years ago
The income statement for Splish Traveler Company shows cost of goods sold $307,000 and operating expenses (exclusive of deprecia
enyata [817]

Answer:

a. $349,700

b. $209,900

Explanation:

The computation is shown below:

Before computing the cash payment made to supplier first we have to find out the purchase amount which is shown below:

(a) Change in Finished goods + purchase = Cost of goods sold

-$25,800 + purchases = $307,000

So, the purchase is $332,800

Now

Cash paid to supplier is

= $332,800 + $16,900

= $349,700

And,

(b) Cash paid for operating expenses is

= $229,000 - $8,000 - $11,100

= $209,900

5 0
3 years ago
A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,
olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) \times Actual Quantity

Standard Price = $4 per pound

Actual Price = \frac{Actual\ Cost}{Actual\ Units} = \frac{5,700}{1,500} = 3.8

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) \times 1,500

= $300 Favorable

7 0
2 years ago
The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes
aliya0001 [1]

Answer:

Monetary downturn would perpetually cause fall in total interest in economy. Thus, interest for online music will fall also. Request bend will move to left and equilibrium will be built up at lower point. Following is chart:  

Cost of houses Supply Old balance cost New Demand cost new equilibrium amount Old  

Equilibrium value: Falls  

Equilibrium Quantity: Falls.  

In above graph DD tumbles to leftwards and now request bend converges the SS or supply bend at lower point. Balance is accomplished at lower point where both cost just as amount fall.

6 0
2 years ago
ABC Corporation, after many profitable years, declares a one-time special cash dividend of $10.00 per share. After the announcem
Crank

Answer:

1 ABC Jan 100 Call

Explanation:

Although the OCC does not usually adjust the strike price of listed options for regular quarterly cash dividends. This is because they are known quantity that are segmented by the market into options premium.

For special cash dividends, they are not a frequent event hence market does not recognize them. This special cash dividend is $10 per share × 100 shares = $1,000 value per contract. It therefore means that the $1,000 value per contract will be adjusted.

The new strike price will be

= 110 - 10 cash dividend

= 100. It also means that the number of shares covered by the contract does not change.

4 0
3 years ago
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