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Paladinen [302]
3 years ago
6

6%/12%Your grandmother is giving you $100 a month for four years while you attend college to earn your bachelor's degree. At a 6

.0 percent discount rate, what are these payments worth to you on the day you enter college
Business
1 answer:
RoseWind [281]3 years ago
3 0

Answer:

The answer is "0.39010989"

Explanation:

PMT= 100\\\\n= 4 \times 12 =48 \\\\r= \frac{6.0}{12}= 0.005

PV =?

PV= PMT\times \frac{(1-\frac{1}{1+r^n})}{r}

      =100 \times \frac{(1-\frac{1}{1+0.005^{48}})}{0.005}\\\\=100 \times \frac{(1-\frac{1}{1+3.55})}{0.005}\\\\=100 \times \frac{(1-\frac{1}{4.55})}{0.005}\\\\=100 \times \frac{(\frac{4.55 -1}{4.55})}{0.005}\\\\=100 \times \frac{(\frac{3.55}{4.55})}{0.005}\\\\=100 \times 0.0039010989\\\\=0.39010989

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lara31 [8.8K]
Brainly can solve anything
4 0
3 years ago
Match each feature with the savings account type.
Marysya12 [62]

<u>1. Basic savings account  </u>

-allows ATM withdrawals  

-allows money transfer  

A savings account is an interest bearing deposit account held at a bank or other monetary foundation that gives an unassuming loan fee. The budgetary organizations may constrain the quantity of withdrawals you can make from your investment account every month. They additionally may charge expenses except if you keep up a specific normal month to month balance in the record. In most cases banks don't give checks investment accounts.  


<u>2. CD </u>

-offers a higher interest rate  

-has a maturity date


A certificate of deposit is a consent to store cash for a settled period with a bank that will pay you premium. You can contribute for three months, a half year, one year or five years. You will get a higher loan fee for the more drawn out time duty. You guarantee to leave all the cash, in addition to the enthusiasm, with the bank for the whole term.  

Basically, you are loaning the bank your cash as an end-result of premium. The CD is a promissory note that the bank issues you.

8 0
3 years ago
Read 2 more answers
A computer company had $3,000,000 in research and development costs. Before recording these costs, the net income of the company
JulijaS [17]

Answer:

Net income of the company accounted for $400,000

Explanation:

Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.

The net income or loss of the company accounted for is computed as:

Net Income or Loss = Net Income - Research and Development cost

where

Net Income amounts to $3,400,000

Research and Development cost amounts to $3,000,000

So, putting the values above:

Net Income or loss = $3,400,000 - $3,000,000

Net Income  = $400,000

7 0
3 years ago
In the short-run, if there is a surplus in the market for a product, the rationing function of price can be expected to cause:
Diano4ka-milaya [45]

Option D

In the short-run, if there is a surplus in the market for a product, the rationing function of price can be expected to cause:  a decrease in the market price of the product.

<h3><u>Explanation:</u></h3>

When quantity provided surpasses quantity required, a surplus endures.  If the value goes up, the amount of necessitated goes downward. If the price drops, the quantity required raises. Price ceilings limit a price from growing beyond a particular level.

When a price ceiling is fixed under the equilibrium price, the amount required will pass quantity fulfilled, and excess demand or deficits will result. Price floors block a price from dropping below a reliable level. When a price floor is fixed beyond the equilibrium price, the measure supplied will exceed the quantity needed, and excess stock or surpluses will happen.

5 0
3 years ago
Common stocks have less security than ______________ stock, but it also has greater potential for reward.
Yuri [45]

Your answer is, Preferred.

<h3><u>What is a Preferred Stock</u></h3>

Preferred stock is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.

<h3><u>Impact of a Preferred Stock</u></h3>

Companies that offer preferred shares instead of issuing bonds can accomplish a lower debt-to-equity ratio. That allows them to gain significantly more future financing from new investors. A company's debt-to-equity ratio is one of the most common metrics used to analyze the financial stability of a business.

<h3><u>The 5 types of Preferred Stock</u></h3>
  • cumulative
  • participating
  • convertible
  • callable
  • adjustable-rate

Thus, <u>option c</u> is your answer.

Learn more about a Preferred Stock here: brainly.com/question/18068539

6 0
2 years ago
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