1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kow [346]
3 years ago
15

An author just signed a lucrative contract with a publisher that offers to pay her the amount of $600 at the end of year 9 when

the book is scheduled to be released. The author, being profligate, desires to receive a different package: an immediate payment of $100 that is followed by an annuity (an equal amount) to be paid at the end of each year for 9 consecutive years. What annuity will make his package equivalent to the publisher's advance. Use an interest rate is 6%.
Business
1 answer:
Mademuasel [1]3 years ago
3 0

Answer:

annuity = $37.51

Explanation:

future value of the annuity = $600 - future value of the initial $100 paid

$100 x 1.06⁹ = $168.95

future value of the annuity = $600 - $168.95 = $431.05

FV of an annuity = payment x {[(1 + r)ⁿ - 1] / r}

payment = FV / {[(1 + r)ⁿ - 1] / r}

  • FV = $431.05
  • r = 6%
  • n = 9

payment = $431.05 / {[1.06⁹ - 1] / 0.06} = $431.05 / {0.68948 / 0.06} = $431.05 / 11.4913 = $37.51

You might be interested in
Many people moved to the Sunbelt to take new jobs in
Lisa [10]


Among the choices above the main reason why many people migrate to Sun belt is to work on the fields of <span>aerospace and electronics this is because of the fast development </span>of the industries in Sun belt and great opportunity are waiting for the migrates. <span>
</span>
4 0
3 years ago
Read 2 more answers
___________ is the ability of a product to satisfy a customer
soldier1979 [14.2K]
The answer to this question is: Quality
6 0
3 years ago
Read 2 more answers
The LeMond Corporation just purchased a new production line. Assume that the firm planned to depreciate the equipment over 5 yea
hammer [34]

Answer:

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

Explanation:

Provided information,

There is a purchase of new production line. On which the company plans to charge depreciation as per straight line method for 5 years. As per the recent amendment the company has to charge depreciation fr 7 years under straight line method.

Thus, depreciation per year will be decreased.

As depreciation is an expense which is going to decrease with increase in duration, therefore, income will increase and accordingly taxes will increase.

Also the net balance of fixed assets will be higher, as depreciation is less.

Therefore, correct statement is

c. LeMond's net fixed assets as shown on the balance sheet will be higher at the end of the year.

8 0
3 years ago
p. 82) Which of the following is NOT a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis? A. Organizatio
PilotLPTM [1.2K]

Answer:

The correct answer is letter "B": SWOT's focus on the external environment is too broad and integrative.

Explanation:

The SWOT analysis is a study of the internal and external factors that influence companies' operations and from which the entity can take advantage of or steps to control risks. The <em>internal factors</em> are the Strengths and Weaknesses while the <em>external components</em> are the Opportunities and Threats of the firm.

<em>The SWOT's focus on the external environment is broad and integrative but such characteristic represents an advantage not a limitation of this strategic study.</em>

3 0
3 years ago
The following account balances are taken from the December 31, 2018, financial statements of ABZ Advertising Company. The compan
miss Akunina [59]

Answer:

Check the explanation

Explanation:

Particulars                                                      Amt

Opening Cash                                               51907

Add: Cash Received (13400+4500)            17900

Less: Payment to supplier                            5500

Less: Operating Expenses Paid                   48950

Closing Cash Balance                                  15357

8 0
3 years ago
Other questions:
  • 2. Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three sto
    12·1 answer
  • Identify the three branches of the federal government and the role of each branch with regard to equal employment opportunity.
    11·1 answer
  • To what extent is debt cancelled in a personal bankruptcy taxable as cancellation-of-debt income
    12·1 answer
  • According to​ Drucker, the most important time to ask​ seriously, "What do we want to​ become?" and​ "What is our​ business?" is
    13·1 answer
  • 1
    9·2 answers
  • how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
    10·1 answer
  • Four brokers decided to collaborate and refuse to show any of the properties listed by a new broker in the area in an effort to
    5·1 answer
  • Can someone help me with this?
    7·2 answers
  • Which term refers to the accountability of marketing dollars spent on marketing activities?
    15·1 answer
  • From the consumer’s perspective, the elements of an imc strategy can be viewed as being either.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!