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Setler79 [48]
2 years ago
5

Assume that you just received an ordinary annuity with 5 annual payments of $1,000 each. You plan to invest the payments at a 6%

annual interest rate. What will the value of the first payment be at the end of the 5th year?
Business
1 answer:
victus00 [196]2 years ago
4 0

Answer:

$1,262.48

Explanation:

The computation of the first payment is shown below:

= Annual payments × (1 + rate) ^ remaining years

= $1,000 × (1 + 0.06) ^ 4 years

= $1,000 × 1.06 ^ 4 years

= $1,262.48

The remaining years would be

= 5 years - 1 years

= 4 years

Since from 1 year to 5 years, the number of years would be 4 and the same is considered in the computation part

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TL Lumber is evaluating a project with cash flows of −$12,800, $7,400, $11,600, and −$3,200 for Years 0 to 3, respectively. Give
Eddi Din [679]

Answer:11.82%

Explanation:

Yr C/ flow int Amount

1 7400. 1.08^2 8631.

2 11600. 1.08^1. 12,528

3 -3,200. 1 -3,200

Total reinvested amount

17959

MIRR=modified internal rate of return=

(17,959/12,800)^1/3-1

=1.1182-1=0.1182=11.82%

4 0
3 years ago
Read 2 more answers
Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic
larisa86 [58]

Answer:

Insider Trading

Explanation:

Insider trading is an illegal act which is performed by an individual on the bases of confidential information. Any information which is not for public use and is used for personal benefit is an offense which is committed by Sally.

She leaked the information to Alice who further used that information to her own personal benefit which is straight off an illegal act falling in the category of insider trading.

3 0
2 years ago
Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Softa [21]

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0
2 years ago
A local finance company quotes an interest rate of 18.1 percent on one-year loans. So, if you borrow $39,000, the interest for t
Natasha2012 [34]

Answer:

The legal rate to quote is 31.88%   per year

The effective annual rate is 36.98%

Explanation:

In calculating the legal rate, I used the rate function in excel,whose formula is below:

rate(nper,-pmt,pv)

The nper is the period of loan calculate as 1 year multiplied by 12 months

pmt is the periodic monthly loan repayment of $3838.25

pv is the today's value of the loan at $39000

Find detailed computation in the attached spreadsheet.

Download xlsx
7 0
2 years ago
A Notary Signing Agent has been providing signing services with no incidents for over 10 years without having undergone a backgr
8_murik_8 [283]

Answer:

<u>b. Must still arrange to obtain and pass a background screening</u>

Explanation:

<em>Remember,</em> a notary signing agent is responsible for endorsing loan documents a sensitive job.

Thus, background screening is compulsory for those involved in the lending process including Notaries who act as signing agents. Despite the background checks, there are benefits attached to this job because the signing agents earn income for loan documents they sign.

7 0
2 years ago
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