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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

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Suppose it is 1810. what advice would you give tecumseh to help him be more successful in his goals than he actually was?
Mashutka [201]
I would probably urge him to engage in guerrilla warfare to be more successful in his military campaigns against the American troops and to fortify his new town Prophetstown to be better prepared against attack by American forces .
7 0
3 years ago
Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data
Kobotan [32]

Answer:

Cost of equity= 10,50%

Explanation:

The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Cost of equity= (D1/P0)+g

D1= next year dividend (D0*

P0=actual price

g= growth rate of dividends

In this exercise:

D1=D0*(1+g)=0,90*1,07=$0,963

P0=$27,50

g=0,07

Cost of equity= 0,963/27,5+0,07=0,1051=10,50%

8 0
3 years ago
Leila is giving a speech about a new café that recently opened near her college campus. Her audience consists of her fellow clas
Hitman42 [59]

Answer: Discussing about the services and inexpensive items in the menu.

Explanation: In the given case, Leila's target customers are the students in college campus. The college students do not have a lot of money to spend. Therefore, she should inform the audience about the inexpensive items in the menu that they can purchase.

She can also persuade them by telling them the services provided by cafe. The nearness of the cafe from the campus could save time of the students, thus it could be a good point to attract the students.

8 0
3 years ago
A number between 1 and 15
alexgriva [62]

Answer:

The probability is 0.20 or 20%

Explanation:

we know that

The probability of an event is the ratio of the size of the event space to the size of the sample space.  

The size of the sample space is the total number of possible outcomes  

The event space is the number of outcomes in the event you are interested in.  

so  

Let

x------> size of the event space

y-----> size of the sample space  

so

P=\frac{x}{y}

In this problem we have  that

Multiple of 5 between 1 and 15 = 5, 10,15

so

x=3

Total numbers between 1 and 15=15

so

y=15

substitute

P=\frac{3}{15}=0.20

Convert to percentage

P=0.20(100)=20\%

8 0
3 years ago
The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,00
Genrish500 [490]

Answer:

$363,500

Explanation:

Gross profit = Revenue - Cost of Goods Sold.

In the case

Revenue = $578,000.

The Cost of Goods Sold: COGS

Inventory turn over = COGS/ Average turnover

Average turnover = Opening stock + closing stock/2

In this case Opening stock + Closing stock = $110,000

Average turnover = $110,000 /2 =$55,000

Therefore:

3.9 = COGS/$55,000

COGS = $55,000 x 3.9

COGS =$214,500

Gross profit =  $578,000 - $214,500

Gross profit = $363,500

3 0
3 years ago
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