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Vaselesa [24]
3 years ago
5

What is the present value of $5,000 received 5 years from now if the discount rate is 5% (rounded to the nearest dollar?a. $6,38

0.b. $3,918.c. $3,200.d. $3,560.
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

The correct option is b. $3,918.

Explanation:

This can be calculated using the simple present value (PV) formula as follows:

PV = FV / (1 + r)^n ............................ (1)

Where;

PV = Present value of the amount = ?

FV = Future value of the amount = $5,000

r = Discount rate = 5%, or 0.05

n = number of years = 5

Substituting the values into equation (1), we have:

PV = $5,000 / (1 + 0.05)^5

PV = $5,000 / 1.05^5

PV = $5,000 / 1.2762815625

PV = 3,918

Therefore, the correct option is b. $3,918.

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"You plan on saving money for retirement in 30 years (t=30) at which time, you wish to have saved $1,000,000. In order to do thi
MissTica

Answer:

<u>X= $15,692.9393</u>

Explanation:

Giving the following information:

Number of years= 30

Final value= 1,000,000

First, deposit $10000 for ten years (last deposit at t=10).

After ten years, you deposit X for 20 years until t=30.

i= 6%

First, we need to calculate the final value in t=10. We are going to use the following formula:

FV= {A*[(1+i)^t-1]}/i

FV= {10000*[(1.06^10)-1]}/0.06= $131807.9494

We can calculate the amount of money to input every year. We need to isolate A:

A= (FV*i)/[(1+i)^n-1]

First, we need to calculate the final value of the $131807.9494

FV= PV*[(1+i)^n]

FV= 131807.9494*1.06)^20= 422725.95

We need (1000000-4227725.95) $577274.05 to reache $1000000

A= (FV*i)/[(1+i)^n-1]

A= (577274.05*0.06)/[(1.06^20)-1]= 15692.9393

<u>X= $15,692.9393</u>

6 0
3 years ago
A company has the following asset account balances: Buildings and equipment $9,200,000 Accumulated depreciation 1,200,000 Patent
Elis [28]

Answer:

$14,000,000

Explanation:

To be reported under Property, Plant and Equipment:

= (Buildings and equipment - Accumulated depreciation) + Land Improvements + Land

= ($9,200,000 - $1,200,000) + $1,000,000 + 5,000,000

= $8,000,000 + $1,000,000 + 5,000,000

= $14,000,000

Note:

(1) Intangible Assets (Patents) will be reported after Plant, Property and Equipment. These are not a part of plant, Property and Equipment.

(2) There is no information about the useful life of the Land, so the value of land improvements will be included in the property, plant, & equipment section.

7 0
3 years ago
The Hawthorne studies showed that:________
Inessa05 [86]

Answer:

B. work motivation is a function of a wide variety of factors,Including pay,social relationships,meaning interests, and attitudes

3 0
3 years ago
Which of the following best defines an in-text citation?
Thepotemich [5.8K]

<u>An in-text citation(a) A brief quotation from an outside author's work that leads the readers to works by the same author.</u>

Explanation:

An in-text citation is a reference which is made within the body of text of an academic writing .

It is the  in-text citation that  alerts the reader about a source that has informed your own writing. The exact format of an in-text citation will depend on the style you need to use, for example, APA,MPA style

An in-text citation is used  to, summarize, paraphrase, or quote from another reference source.

For Example :-In APA style in-text citation  uses the author's last name and the year of publication, like (tsield, 2008). For direct quotations, include the page number as well  (tsield, 2008, p. 18).

<u>An in-text citation(a) A brief quotation from an outside author's work that leads the readers to works by the same author.</u>

6 0
3 years ago
g which is debt-free and finances only with equity from retained earnings. You were given the following information: rRF = 3.50%
Pachacha [2.7K]

Answer: 7.46%

Explanation:

The CAPITAL ASSET PRICING MODEL is a very useful tool for calculating a firm's Cost of Equity.

The Formula is,

Rc = Rrf + b(Rpm)

Where,

Rc is the Cost of Equity

Rpf is the Risk risk free rate

b is beta

Rpm is the risk premium

Plugging in the digits we have,

Rc = 0.0350 + 0.88(0.045)

= 0.0746

The firm's cost of equity from retained earnings based on the CAPM is therefore 7.46%

3 0
3 years ago
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