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
neonofarm [45]
3 years ago
11

A 22-year old college student has been promised a $1 million check at this 50thbirthday (28years from today). What is the presen

t value of the $1 million today assuming an interest rate of 5%
Business
1 answer:
adoni [48]3 years ago
4 0

Answer:

$255,093.64

Explanation:

Calculation to determine the present value of $1 million today

Using Financial calculator

PV = PV (rate, nper, pmt, fv, type)

Where,

FV = $1,000,000

Annual Interest rate = 5%

Number of periods = 28

Let plug in the formula

PV = PV (5%, 28, 0, -1000000, 0)

PV= $255093.64

Therefore the Present value of $1 million today is $255,093.64

You might be interested in
Below is the aging of receivables schedule for Evers Industries. Aging-of-Receivables Schedule November 30 Customer Balance Not
Murrr4er [49]

Answer:

uncollectible ammount expense 47,972 debit

            allowance for doubtful account    47,972 credit

Explanation:

Fro mthe talbe we are given the amount of account over-time fro meach customer.

As we are presented with all date we should proceed directly with the journal entry:

the aging method stated an allowance of       60,727

the current balance is for                            <u>     (12,755)   </u>

the adjustment will be for:                         <em>       47,972 </em>

5 0
3 years ago
The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and
olga_2 [115]

Answer:

Explanation:

incorrect answer

a credit balance of $7500

correct answer

a debit balance of $7500.

6 0
3 years ago
Read 2 more answers
g You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. If the inflation rate is 1.09%, by how
gayaneshka [121]

Answer:

Real purchasing power increase= 2.16%

Explanation:

Giving the following information:

You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.

In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.

The inflation rate decreases the purchasing power of nominal income.

Real purchasing power increase= annual interest rate - inflation rate

Real purchasing power increase= 3.25 - 1.09= 2.16%

6 0
3 years ago
during the 1970s, some economists argued that the cause of the woes of the economy were due to . a.) increase in unemployment, a
mr Goodwill [35]

During the 1970s, some economists argued that the cause of the woes of the economy was due to d.) supply shock due to issues with the supply of oil

<h3>What was the economic crisis of the 1970s?</h3>

This refers to the term that is used to discuss and describe the economic crisis that threatened to engulf the United States financial sector due to certain influences such as the 1973 oil crisis, the fall outs of the Vietnam War under President Johnson and many other factors.

Hence, it can be seen that with these factors in mind, the main argument of some economists was that the cause of the woes of the economy was due to d.) supply shock due to issues with the supply of oil as can be found in option D which is true because of the supply shock which helped to cripple the US economy.


Read more about economic crisis of the 1970s here:

brainly.com/question/1549639

#SPJ1

6 0
1 year ago
Kyle has $2,200 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate
Darina [25.2K]

Answer:

Kyle will have in five years from now 2,501.26 dollars for his investment on certificate of deposit.

Explanation:

We need to calcualte the future value of a lump sum:

Principal \: (1+ r)^{time} = Amount

Principal $ 2,200

time 5 years

rate 2.6% = 2.6/100 = 0.02600

2200 \: (1+ 0.026)^{5} = Amount

Amount 2,501.26

7 0
3 years ago
Other questions:
  • Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance
    6·1 answer
  • Is wearing glasses all the time bad?
    6·1 answer
  • Martha has noticed that her employees do not always greet their coffee collective customers promptly and customers sometimes hav
    10·2 answers
  • The ________ stage of the new-product process assesses the total "business fit" of the proposed new product with the company's m
    12·1 answer
  • Which project type creates a competitive advantage that enables the organization to earn a greater than normal return on investm
    8·1 answer
  • Someone falls into the water from a dock. what is the proper sequence of actions to help this person?
    9·1 answer
  • Woodman Products, Inc., has found that new products follow a learning curve. The first two units have been completed with the fo
    12·1 answer
  • You are reading product reviews posted online by consumers. Which external information source are you using?
    5·2 answers
  • As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
    8·1 answer
  • The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.4 hours
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!