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Svetllana [295]
2 years ago
14

What is the present value of $12,350 to be received 4 years from today if the discount rate is 5 percent?

Business
1 answer:
Readme [11.4K]2 years ago
5 0

Answer:

The correct answer is $10,160.38

Explanation:

According to the scenario, the given data are as follows:

Future value = $12,350

Number of years (n) = 4 years

Discount rate (r) = 5%

Hence, Present value can be calculated by following formula:

Future value = Present value ( 1 + r )^{n}

$12,350 = Present value ( 1 + 0.05 )^{4}

Present value = \frac{$12,350}{1.05^{4} }

Present value = $10,160.38

Hence, the correct answer is $10.160.38

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Neporo4naja [7]

This will ultimately depend on the bank, but no matter what it is important to look at fees, locations, services, and interest rates when considering your next bank.

7 0
2 years ago
Last month, you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for
faust18 [17]

Answer:

There are at least 2 opportunity costs associated with of letting your colleague have another month:

  1. if you invested in the oil-well venture, you could have earned $5,100 x 36% = $1,836 in one year
  2. if you invested in the new IT stock, you could have earned $5,100 x 48% = $2,448 in one year

You could invest in one of these options, or divide your money and invest in both options, e.g. invest $2,000 in the oil company and $3,000 in the IT company. Each different investment proportion results in a different opportunity cost.

Explanation:

Opportunity costs are the benefits lost or extra costs associated to carrying out an investment or activity instead of another alternative. Sometimes you might have several opportunity costs for one investment, e.g. invest in the IT company which is risky, invest in corporate bonds which is less risky or invest in US securities which is a safe investment.

6 0
2 years ago
Recruiting __________ is sometimes viewed as unethical.
zhuklara [117]

Answer:

b

Explanation:

4 0
2 years ago
When a government program is justified not on its merits but on the number of jobs it will create:___________. a. the program is
lesya [120]

Answer: it should be approved only if the unemployment rate is low

Explanation: Unemployment can be defined as the level of joblessness in an economy, often measured as a percentage of the workforce.

Unemployment has a lot of disadvantages both to an unemployed individual, and the Society at large. It leads to poverty. Another is that it leads to depression, low self-esteem, anxiety and other mental health issues, especially if an individual truly wants a job but can't find employment. These are just some of the few disadvantages of unemployment in a society. According to the doctrine of double effect, the outcome of this government can be justified because the outcome is good.

3 0
2 years ago
Consider a company that provides two services using the same basic process. Service A is relatively complex, and has 15 opportun
patriot [66]

Answer:

The answer is: Total DPMO of the overall process is = 4,733.33

Explanation:

To calculate the defects per million opportunities (DPMO) we use the following formula:

       DPMO = (D/(U*O))*1,000,000

  • Defects = D
  • Unit = U
  • Opportunity to have a defect = O

We are given the following data:

<u>Service A:</u>                                           <u>Service B:</u>

D = 10                                                  D = 17

U = 500                                              U = 1,000

O = 15                                                  O = 5

DPMO Service A = [10 / (500 x 15)] x 1,000,000 = 1,333.33

DPMO Service B = [17 / (1,000 x 5)] x 1,000,000 = 3,400

Total DPMO = 4,733.33

4 0
2 years ago
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