Answer:
what are the options? then ill reply with an answer.
Answer:
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
Explanation:
The formula to compute the present value is shown below:
Future value = Present value × (1 + interest rate)^number of years
or Present value = Future value ÷ (1 + interest rate)^number of years
Let us take an example
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
It is done on semi annual basis. As we can see that the present value is less than the future value
Answer:
expected value of earnings = $2100000
Explanation:
given data
rate of excess earning = 75%
lifetime earnings average = $1,200,000
to find out
expected value of earnings
solution
we get here expected value of earnings that is express as
expected value of earnings = lifetime earnings + ( rate of excess earning × lifetime earnings ) .................1
put here value we get
expected value of earnings = $1,200,000 + ( 75% × $1,200,000 )
expected value of earnings = $1,200,000 + $900000
expected value of earnings = $2100000
