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GenaCL600 [577]
3 years ago
12

What is the present value of a four-period annuity of $150 per year that begins two years from today if the annual rate of retur

n on similar investments is 9%?
Business
1 answer:
baherus [9]3 years ago
7 0

Answer:

$409.02  

Explanation:

In the first place, we need to determine the present value of the yearly annuity at the beginning of payout in 2 years:

PV=yearly payment*(1-(1+r)^-n/r

yearly payment=$150

r=annual rate of return on similar investments =9%

n=number of annual payments=4

PV=$150*(1-(1+9%)^-4/9%

PV=$150*(1-(1.09)^-4/9%

PV=$150*(1-0.708425211 )/9%=$485.96  

Present value in 2 years=future value today=$485.96  

PV=$485.96 /(1+9%)^2=$409.02  

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Follows are the solution to the given question:

Explanation:

In this question, we assume that there is no change in selling price.

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3 years ago
If a country has a trade surplus, then the country Group of answer choices imports as much as it exports imports more than it ex
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Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

<h3>What is tax liability?</h3>

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

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