Answer:
The correct answer is $357,142.86.
Explanation:
According to the scenario, the given data are as follows:
Initial payment = $20,000
Growth rate = 3.4%
Discount rate = 9%
So, we can calculate the present value, by using following formula:
Present Value = Initial payment ÷ ( Discount rate - Growth rate)
By putting the value, we get
= $20,000 ÷ (0.09-0.034)
= 357,142.86
Hence, The present value of this Growing perpetuity is $357,142.86
Answer:
Thus, effective purchasing Implies buying the right items needed for operations at the right/fair price so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.
Answer:
a. the purchase of a new home
Explanation:
Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households on durable and non durable goods + Investment spending by businesses + Government Spending + Net Export
The purchase or a new home is considered an investment and thus it is added to investment when calculating GDP .
I hope my answer helps you
