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3 years ago

What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment

Business

1 answer:

Doss [256]3 years ago

6 0

Answer:

$882.03

Explanation:

Interest rate used is 7.23%

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 to 12 = 58

cash flow in year 13 = 1058

I = 7.23

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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Identify the main source areas and explain two key push factors associated with the early twentieth-century peaks. Discuss how c

VikaD [51]

Explanation:

Southern and Eastern Europe became the major spring regions. Some of the big driving forces is the World War I, primarily in Europe, which enabled immigrants to join the United States. The economic conditions were another significant consideration as the prospects for jobs in the war declined.

As reported, when migrants went to the USA, there were many possibilities for jobs. The American automotive industry celebrated of the first World War. War-time goods have been pursued, and America has become one of Britain's major food producers, and has provided refugees a wide range of jobs.

3 0

3 years ago

Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends fo

solong [7]

Answer:

The correct solution is "$42.94".

Explanation:

The given values are:

D0 = 4

Ks = 15%

As we know,

⇒ $g = (1-Div \ payout \ ratio)\times ROE$

$=(1-60 \ percent)\times 13 \ percent$

$=5.20 \ percent$

By using the Gordon Model, we get

⇒ $P0=Do\times \frac{(1+g)}{(Ks-g)}$

$=4\times \frac{ (1+5.20 \ percent)}{(15 \ percent-5.20 \ percent)}$

$=42.94$ ($)

6 0

3 years ago

Which of the following would further an economic goal of efficiency?

max2010maxim [7]

Answer:

The correct answer is (C)

Explanation:

Economics is all about allocating limited resources to attain maximum utility. In that regard, efficiency can be achieved by giving contracts to companies with higher productivity. These companies are all about attaining maximum productivity by investing limited resource. More productivity will increase the utility, and that will improve economic efficiency. So it is critical to give projects and contracts to certain companies which can increase the overall productivity.

7 0

3 years ago

Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu

zimovet [89]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

Revaluation gain = $46,000

The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

4 0

4 years ago

A lottery claims its grand prize is $15 million, payable over 5 years at $3000000 per year. If the first payment is made imm

xz_007 [3.2K]

Answer:

$ 11, 978,133.75

Explanation:

The grand prize of 15,000,000 is worth the present value of the prize at an 8% interest. The prize is paid every year, meaning its an annuity case.

The present value of an annuity is calculated using the formula

PV = P × 1 − (1+r)−n

Where

P $3,000,000

r is 8% 0r 0.08

n is 5

PV = $3,000,000 x 1-(1+0.08) - 5

0.08

PV =$3,000,000 x 1 - 0. 6805831

0.08

PV = $ 3,000, 000 x 3.99271

PV = 11, 978,133.75

3 0

4 years ago