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3 years ago

What is the present value of 4360 to be received at the beginning of each of 30 periods discounted at 5% compound interest

Business

1 answer:

Sloan [31]3 years ago

5 0

Answer:

The right solution is "70375.08".

Explanation:

Given that,

Present value,

= 4360

Interest rate,

= 5%

Time period,

= 30

Now,

The present value of inflows will be:

= $(1+rate)\times \frac{Present \ value[1-(1+Interest \ rate)^{-time \ period}]}{rate}$

= $1.05\times 4360\times \frac{[1-(1.05)^{-30}]}{0.05}$

= $4360\times 16.1410736$

= $70375.08$

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The answer is A assigning the responsibility of completing a task to another

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3 years ago

Because transit tends to be congested in this country, many people prefer to shop in their local neighborhoods. They tend to go

marta [7]

Answer: A few large flagship stores located in big cities; High-end pricing( Option A and D)

Explanation:

Because the people in this country usually shop close to their home, it would not be wise for a business to opt for few large flagship stores rather than a larger number of the smaller stores.

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Also, in a country with a congested transportation, an easy-to-access store locations will be important and having product experts on the floor who answers the questions of customers’ would appeal to network-oriented local culture.

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3 years ago

Given a home country and a foreign country, purchasing power parity suggests that: A. the home currency will depreciate if the c

lisabon 2012 [21]

Answer:

Option (C) is Correct.

Explanation:

There are two countries : Home country and Foreign country.

Purchasing power parity measures or compares the currencies of the two different nations by using a basket of goods approach.

It is calculated as follows:

= (cost of basket of goods in home currency) ÷ (Cost of same basket of goods in foreign country)

We know that if there is an increase in the rate of inflation in a home country then as a result there is a fall in the value of home currency. Higher inflation will lead to an increase in the prices of goods in the home country but prices remains the same in foreign country.

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3 years ago

Read 2 more answers

Dawn Swift discovered that 20 years ago, the average tuition for one year at an Ivy League school was $15,000. Today, the aver

KATRIN_1 [288]

Answer:

C. 7.18%

Explanation:

Formula for calculating growth rate

= (Current amount/initial amount) ^ 1/n - 1

Given that

Initial amount = 15000

Current amount = 60000

n = 20

Therefore,

Growth rate = (60000/15000)^1/20 - 1

= (4)^1/20 - 1

= 1.07177 - 1

= 0.07177

To percentage we multiply by 100

So,

= 0.07177 × 100

= 7.177%

Approximately

= 7.18%

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3 years ago

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end

kow [346]

Answer:

Explanation:

business model of the securities is to earn capital gain and are classified as through fair vlaue through profit and loss

such securities are revalued at reporting date any gain are loss is recognized in profit and loss account.

Security name Carrying Amount Fair value (Gain)/Loss

Telsa Bond 15300 11475 3900

Nike Bonds 24400 25620 -1220

Ford Bonds 6100 4880 1220

the securities will recorded at fair value in the balance sheet and their respective gain loss will be recorded in profit and loss by making these entries

Entries

Loss on revaluation of investment 3900

Investment in Telsa bond 3900

To record the loss on telsa investment.

Nike Investment 1220

Gain on revaluation of investment 1220

To record the Gain on Nike investment.

Loss on revaluation of investment 1220

Investment in Ford bond 1220

To record the loss on Ford investment.

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4 years ago