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1 answer:
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Answer:
The PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 5.5% is $20,352.
Step-by-step explanation:
P = PMT [(1 - (1 / (1 + r))) / r]
= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]
= 2,700 [(1 - (1 / (1 + 0.055))) / 0.05]
= 2,700 [(1 - (1 / (1.708)) / 0.05]
= 2,700 [(1 - 0.58)) / 0.05]
= 2,700 [(0.41457) / 0.05]
= 2,700(7.53)
=$ 20,352
The area of the region bounded above by y= eˣ bounded by y = x, and bounded on the sides; x =0; and x = 1 is given as e¹ - 1.5.
<h3>What is the significance of "Area under the curve"?</h3>This is the condition in which one process increases a quantity at a certain rate and another process decreases the same quantity at the same rate, and the "area" (actually the integral of the difference between those two rates integrated over a given period of time) is the accumulated effect of those two processes.
<h3>What is the justification for the above answer?</h3>Area =
=
= e¹-(1/2-0); or
Area = e -1.5 Squared Unit
The related Graph is attached accordingly.
Learn more about area bounded by curve:
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