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coldgirl [10]
2 years ago
8

PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a year. 1. $600 per yea

r for 12 years at 8% 2. $300 per year for 6 years at 4% 3. $500 per year for 6 years at 0% 4. Rework parts a, b, and c assuming they are annuities due.
Business
1 answer:
NikAS [45]2 years ago
4 0

Answer:

    ordinary   // annnuity-due

1.- 4,521.65   //  4,883.38

2.- 1,572.64  //  1,635.54

4.- 3,000.00 //  3,000

Explanation:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 600.00

time 12

rate 0.08

600 \times \frac{1-(1+0.08)^{-12} }{0.08} = PV\\

PV $4,521.6468

Annuity-due

600 \times \frac{1-(1+0.08)^{-12} }{0.08}(1+0.08) = PV\\

PV $4,883.3786

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 300.00

time 6

rate 0.04

300 \times \frac{1-(1+0.04)^{-6} }{0.04} = PV\\

PV $1,572.6411

Annuity-due

1,572.6411 x 1.04 = $1,635.5467

4.- as interest rate is 0% the money do not lose value over time

will be 3,000 regardless of time or type of annuity

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Slovac Company purchased a machine that has an estimated useful life of eight years for $7,500. Its salvage value is estimated a
saw5 [17]

Answer:

A. 1,406

Explanation:

Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

The cost of asset =  $7,500

salvage value  = $500

estimated useful life = 8years

To calculate the depreciation value using Double-declining balance formula = 2 X Cost of the asset X Depreciation rate

Depreciation rate = 1/useful life *100 = (1/8) * 100 = 12.5%

Therefore

2 x $7500 x 12.5% =  $1,875 - year 1

for the second year the cost of asset will be$ 7,500 - $1,875 =  $5625

2 x  $5625 x 12.5% = $1,406.25

Therefore the answer is $1,406

8 0
1 year ago
Your company experienced 20% percent turnover last year. This means 20 percent of people employed at the beginning of the year w
Stella [2.4K]

Answer:

48

Explanation:

Employee turnover is the rate at which employees leave a company, whether voluntary or involuntary.

In this company, 20 percent of employees leave every year.

If the company intends to have 40 more workers, it should plan to hire the 40 plus an extra 20 percent.

The company should hire 40 plus 20% of 40

=40 + (20/100 x 40)

=40 +(0.2 x40)

=40 +8

=48

The company should hire 48 workers

3 0
1 year ago
Which of the following is a distinct advantage of exporting? A. Absolute control over operations in the foreign nation B. It may
victus00 [196]

Answer: B. It may help a firm achieve experience curve and location economies

Explanation: Exporting is defined as the act of conveying or sending commodities abroad or to another country, in the course of commerce. Exporting provides a distinct advantage to firms in that it helps them achieve experience curve (which posits that the more experience a business has in the production of product, the lower its costs in producing the product) and location economies (the production of a good or product under the most optimum settings that confers an added advantage in cost of productions over their competitors).

7 0
2 years ago
After nearly 30 years of growth, sales at Ida's company have begun to decline. None of the managers have been able to determine
MariettaO [177]

Answer:

unstructured problem

Explanation:

According to my research on different types of business problems, I can say that based on the information provided within the question this is an example of an unstructured problem. These are defined as problems that do not have an identified cause and can be difficult to identify or solve. Which is what seems to be the case in this scenario since nobody knows why sales have decline.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
2 years ago
Enrollment at Bayside College keeps going up, despite tuition and fee hikes to help cover the cost of new wind turbines installe
Ilya [14]

Answer:

a. new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs

Explanation:

Corporate social responsibility is defined as integration of social and environmental concerns in the business activities of an organisation.

The business entity is accountable to its stakeholders and the public.

In the given scenario the wind turbines generate enough power to serve the campus buildings and to sell to local business establishments.

However enrollment keeps going up because cost of the new turbines need to be covered.

This demonstrates new technology such as wind turbines is a huge capital investment for a college. The effort demonstrates the high cost of environmental programs

4 0
1 year ago
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