Answer:
$49,709.34
Explanation:
Payments of fixed amount for a certain period of time is known as an Annuity.
Step 1 : We need to calculate the Net Present Value of the Annuity
<em>Using a financial calculator the following data will need to be captured.</em>
PMT = $4,200
P/Yr = 4
N = 4 x 4 = 12
I = 0.82 %
FV = $ 0
PV = ?
Therefore, the Net Present Value of the Annuity is $49,734.80
Step 2 : Then we calculate the Present Value (Value today of this Annuity)
Since you need to have $49,734.80 in 3 months.
Then, today you require :
FV = $49,734.80
I = 0.82 %
P/Yr = 4
N = 0.25
PMT = $0
PV = ?
therefore, today you require $49,709.34
Conclusion
We are discounting the payments in both stages by the rate of 0.83 % .Therefore, you need to have in your bank account $49,709.34 today to meet your expense needs over the next four years.
Answer:
The answer is A) Macroeconomic policy will be needed to address rising inflation.
Explanation:
Macroeconomics policy addresses key issues in the economy such as the structure, performance, behavior, and decision-making of the whole, or aggregate, economy.
The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
In the short term, it focuses on the way the economy performs as a whole and then analyzes how different sectors of the economy relate to one another to understand how the aggregate functions. This includes looking at variables like unemployment Inflation and how it reflect on the Gross Domestic product.
How much money it took to make the product/expenses
Answer:
C. $2,675,000
Explanation:
As provided there is no guaranteed amount of residual value. Accordingly it shall be considered $0. Further, the present value of such lease payments is to be considered for recording this as an asset.
This will be recorded at the value of the present value.
The present value of lease payments = $500,000 Present value factor
= $500,000 5.35 = $2,675,000
This is the amount at which the asset is recorded and then depreciation is charged on it.