Answer:
At the end of year 4 (one year before the first cash flow)
Explanation:
According to the present value of perpetuity concept here we divided the predicted cash flows by the rate of that period by calculating this it provides the present value that is prior to the cash flow now if we want for more years so we should have to discount over that time period
Since in the given situation the starting of the cash flows is from the ending of year 5 therefore the timeline would be at the closing of year 4 i..e one year prior to the first cash flow
A "budget" is a plan in which an individual balances available resources and expenses.
Budgeting is the essential way that you can take control of your accounts. Basically, a budget is a composed arrangement for how you will spend your cash. You can make a month to month or a yearly spending plan. The budget enables you to settle on money related choices early, which makes it less demanding to cover every one of your costs consistently. Budgeting reliably can enable you to turn your accounts around and start to fabricate riches.
In the exact moment you run out of laundry detergent and realize you need to pick some up at the store, you are in the problem recognition stage of the buying decision process. The problem recognition stage is realizing you have to make the purchase versus deciding to make the purchase of something.
Answer:
Option D. Both A and B
Explanation:
The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.
Answer:
Monthly deposit= $840.74
Explanation:
Giving the following information:
Number of periods= 26*12= 312 months
Future Value= $1,500,000
Interste rate= 0.11/12= 0.0092
<u>To calculate the monthly deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,500,000*0.0092) / [(1.0092^312) - 1]
A= $840.74
