Answer:
Ans. The value today of Social Security's promise is $7,726.98
Explanation:
Hi, well, first we need to bring to year 45 all 14 cash flows, and when they are at year 45, we have to bring it to present value, discounted at 9% rate, or 0.09.
First, let´s bring to year 45 all 14 future cash flows, the formula to use is the following.
That is because the first annuity is received exactly in year 45, it should look like this.
Now we need to bring this to present value to asses the value today of Social Security's promise. For that, we use the following formula.
That is:
Best of luck.
The correct answer should be an increase in quantity supplied and an increase in price. Since people want it, it will be provided more. It's supply and demand, the more you have a need for something the more will be produced, and vice versa. Of course, the owners will use the situation to earn a lot because people will want to buy it so the price will probably go up too.
Answer:
$495,614.80
Explanation:
The interest paid will be the total amount paid minus the principal amount.
The amount paid after 30 years using compound interest will be
the future amount. Interest rate is compounded monthly . There are 12 compounds in a year, equivalent to 360 after 30 years.
interest is 4.35 per year or 4.35/12 per month
FV = P x ( 1+ r)N
Fv = 185,000 x ( 1+ 0.3625/100)360
Fv = 185,000 x (1.003625)30
Fv = 185,000 x 3.67899783
Fv = 680,614.60
Interest paid will be = $,614.80 - $185,000.00
=$495,614.80
Answer:
(a) What factors determine a company's total revenue?
Sales.
(b) Do higher lead to increased revenues for a company?
Yes, a <u><em>Lead</em></u> is a person or company that might finally become a client, and drive the sales up.