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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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Mrs. Patterson is a new enrollee in the HealthBest Medicare Advantage (MA-PD) plan. She is new to this type of coverage and asks
Serggg [28]

Answer:

She should expect either the pharmacy directory in hard copy or a distinct and separate notice (in hard copy) describing where she can find the pharmacy directory online and how to request a hard copy.

Explanation:

Additionally, I will also mention that The main difference between medicare advantage plan and Normal medicare is that normal medicare will include wide coverage provided by the government, but the quality of services provided for the medicare advantage plan will be better on average.

The pharmacy directory mentioned above can be used by Mrs. Patterson to choose the type of Specific health services that she wants, the type of specialists that she prefers and the location of treatment that is the most convenient to her. (this type of benefits wouldn't be found in normal plan)

5 0
3 years ago
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
3 years ago
True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trad
solniwko [45]

"Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles" is FALSE.

<u>Option:</u> B

<u>Explanation:</u>

Specialization refers to countries' propensity to focus in certain items they exchange for other commodities, rather than to manufacture all the consumer goods on their own. As the PPF production possibilities frontier displays that production is impractical, Freedonia and Lamponia had to engage in international trade.

Both countries are able to consume the goods they produce.When a country is skilled in manufacturing a good, it can manufacture this good at a lower cost of opportunity than its trading nation. For this comparative advantage, both countries benefit from competing and trading with one another.

7 0
3 years ago
56
SOVA2 [1]

bro it's so lengthy

5 0
3 years ago
Suppose you are the manager of a watchmaking firm operating in a competitive market. Your cost of production is given by C = 200
irga5000 [103]

Answer:

1. 20 units

2. $600

Explanation:

1. C = 200 + 2q^{2}

MC = 4q

Price, P = $80

For maximizing profits,

Marginal cost =  Price of the commodity

4q = 80

q = 20 units

C = 200 + 2q^{2}

C = 200 + 2(20)^{2}

         = 200 + 800

         = 1,000

2. Profit = Total revenue - Total cost

             = (Price × Quantity) - TC

             = (80 × 20) - $1,000

             = $1,600 - $1,000

             = $600

3. We know that the firm in the short run will be produce at a point where total revenue is greater than the total variable cost

Average variable cost = variable cost ÷ quantity

                              =\frac{2Q^{2}}{Q}

                                     = 2Q

MC = 4Q

Here,  MC is greater than AVC at any given point.

so in the short run firm will producing short run positive profit.

4 0
3 years ago
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