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Artist 52 [7]
3 years ago
15

It is reported that an annuity-immediate with $100 annual payments for s years has an accumulated value of $933.52 at the time o

f its last payment. Furthermore, an annuity-immediate that has $40 annual payments and a term four times as long accumulates to $2,680.11 at the time of its last payment. Now consider an annuity that has the same term as the second of these annuities but only has a payment at the end of each four years. Suppose its first payment is $2,400 and each further payment is $300 more than its predecessor. Express the accumulated value of this third annuity at the time of its last payment as a function of the annual effective interest rate i . Make sure any annuity symbols appearing in the function are to be evaluated at the rate i used in valuing the first two annuities.

Business
1 answer:
Gre4nikov [31]3 years ago
8 0

Answer:

Check the explanation

Explanation:

The Expressed accumulated value<em><u> (which is the overall sum an investment holds at present, which also includes the capital that was invested and the gain it has received to date. The accumulated value can also be referred to as an cash value.)</u></em> of this third annuity at the time of its last payment can be seen in the attached image below:

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For the next 2 questions, use the financials of Acme Corporation. After adjusting revenue for accounts receivable and deferred r
Mekhanik [1.2K]

Answer: B. $892.1 million

Explanation:

The Revenue was $939,393 million

When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.

Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.

Increase in Receivables = 309,196 - 221,504

= $87,692 million

Increase in Deferred Revenue= 374,730 - 334,358

= $40,372 million

The Cash generated is therefore;

= 939,393 - 87,692 + 40,372

= $892,073

= $892.1 million

I have attached the Financial Statements of Acme Corporation.

6 0
3 years ago
Year-to-date, Oracle had earned a −1.38 percent return. During the same time period, Valero Energy earned 7.62 percent and McDon
harkovskaia [24]

Answer:

1.94%

Explanation:

The computation of portfolio return is shown below:-

Portfolio return = Sum of (return from stock × Weight of stock)

= (-1.38 × 35%) + (7.62 × 30%) + (0.40 × 35%)

= 0.483 + 2.286 + 0.14

= 1.94%

Therefore for computing the portfolio return we simply multiply the sum of return from stock with sum of weight of stock.

5 0
3 years ago
You put $100 in the bank now, $200 in the bank a year from now, and $300 in the bank in two years. How much money will you have
Paul [167]

Answer:

End of year 3: $677.85

Explanation:

If the interest rate is annual effective:

Year 0 (now): $100

In a year from now I will have:

End of Year 1: $100*1,075= 107.5

Then I put $200 more, i will have $307.5

Begging of year 2: $307.5

In two years from now I will have:

End of year 2: $307.5*1.075= $330.56

Then I put $300 more, i will have $660.56

Begging of year 3: $660.56

In three years from now i will have:

$660.56*1,075= $677.85

End of year 3: $677.85

4 0
3 years ago
A rifle manufacturer like Springfield needs muzzles, trigger mechanism, and wooden gunstocks to produce rifles. Without these it
kicyunya [14]

Answer:

derived demand

Explanation:

The demand for a factor of production or the intermediate goods would occurs when the result of the demand for the other final or intermediate goods this we called as a derive demand. Also the demand of the firm let say the factor of an output would be calculated via market demand for the product it generates.

So according to the given situation, it is a derive demand

6 0
3 years ago
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR
cestrela7 [59]

Answer:

a. 9.43%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator.

Cash flow in year zero = −$1,250 

Cash flow each year from year one to five = $325

IRR = 9.43%

To find the IRR using a financial calacutor:

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 IRR button and then press the compute button.

I hope my answer helps you

3 0
3 years ago
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