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
marshall27 [118]
3 years ago
8

Denise will receive annual payments of $10,000 for the next 25 years. The discount rate is 6.8 percent. What is the difference i

n the present value of these payments if they are paid at the beginning of each year rather than at the end of each year
Business
1 answer:
frosja888 [35]3 years ago
4 0

Answer: $8,069.29

Explanation:

If it is paid at the beginning of the year, it accumulates an extra year of interest and would be an Annuity Due.

If it is paid at the end, it is an ordinary annuity.

Present value of annuity due = Annuity * Present value interest factor of Annuity due, 6.8%, 25 periods

= 10,000 * 12.673521

= $126,735.21

Present value of annuity = Annuity * Present value interest factor of annuity, 6.8%, 25 periods

= 10,000 * 11.866592

= $118,665.92

Difference :

= 126,735.21 - 118,665.92

= $8,069.29

You might be interested in
Sandy Fiero works as the Chief Knowledge Officer for Bend Lumbar Company. She has been given the responsibility to create a prod
Margarita [4]

Answer:

The primary value activity outbound logistics.

Explanation:

Operations - are all the activities required to transform inputs into outputs (products and services). Outbound Logistics - include all the activities required to collect, store, and distribute the output

3 0
3 years ago
Read 2 more answers
The _______ of performance scores makes obtaining a significant validity coefficient more difficult with a concurrent validity d
LUCKY_DIMON [66]
What does the answers mean?
8 0
3 years ago
You are the owner of a Comfort Inn and would like to hire a new general manager. In terms of preventing possible agency problems
Elanso [62]

Answer:

To avoid possible agency problems, <em>profit sharing</em> should be included in your offer

Explanation:

<em>Profit sharing</em> has to be included to ensure trust and to also gain the new general manager's trust

3 0
3 years ago
You get a part-time job through an employment service. The service charges you ten percent of your first week's pay as payment f
kotykmax [81]
that employment service will taxed you
5 0
4 years ago
Read 2 more answers
The bank collected $1,500 for the company from the company's client. On a bank reconciliation, this would be shown as a(n)
laila [671]

Answer:

A. increase in the ledger cash account balance (book balance)

Explanation:

The bank collected $1500 from the customer on behalf of the company. The amount was posted to the customer's account, increasing the company's bank balance by $1500. When the bank generates the customer's statement, the collected amount will reflect in the customer statement increasing it by $1500.

To reconcile the customer bank statements, and the customer's ledger, the amount of $1500 will have to be added to the customer's cash balance.

6 0
3 years ago
Other questions:
  • 1
    10·2 answers
  • Before an evaluation of the project team can be effective and useful, a minimum core of conditions needs to be in place before t
    14·1 answer
  • The consumer price index (CPI) is used to compute inflation.
    5·2 answers
  • A hardware store owner placed an advertisement for Sylvania LED bulbs in the local newspaper. Sylvania provided the storeowner w
    5·1 answer
  • Insurance can help you:
    6·2 answers
  • A defensive stock:
    10·1 answer
  • year, Pietro expects to produce 48,700 units and sell 48,000 units at a price of $18.00 each. Beginning inventory of finished go
    15·1 answer
  • SEND HELP PERSONAL FINANCE TIMED TEST
    5·1 answer
  • Sledge Co. manufactures a product requiring 1.5 lbs. of raw material for each finished unit. The beginning inventory of raw mate
    7·2 answers
  • Vital Silence Corp. has just issued a 30-year callable, convertible bond with a coupon rate of 6.4 percent and annual coupon pay
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!