answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Anya, sales manager for Pacific Lumber, tells Ricardo, the firm's inventory manager, that the firm's failure to have adequate su
zaharov [31]

Answer:

The correct answer is B

Explanation:

Stockout or OOS stands for Out of Stock, which is event that causes the inventory to be exhausted. It occur with the entire supply chain.

In this case, Firm is facing failure for having adequate or enough supplies on hand, which result in the lost sales amounts to $175,000. It is representing the Stockout in the inventory management costs.

3 0
2 years ago
a country produces and consumes 8 units of sugar cane costing $50 per unit and two ipods that cost $200 each. after specializati
Musya8 [376]

Answer: $33 without trade, $50 with trade

Explanation:

Wages can be defined as any monetary compensation paid by an employer to his/her employee for work done during a specific period of time. Payment may be calculated as a fixed amount for each accomplished task, or on hourly basis, daily rate, or based on the quantity of work done, which has been easily and adequately measured. The wages of this country if a efficiently calculated is $33 without trade and $50 with trade.

4 0
2 years ago
Read 2 more answers
If a just-in-time purchasing policy is successful in reducing the total inventory costs of a manufacturing company, which of the
gulaghasi [49]

Answer:

Stock out costs increase

Carrying costs decrease

Explanation:

Just in time (JIT) decreases total inventory and increases the number of deliveries made by the company's vendors.

Since the company is going to hold fewer materials and components, then the risk of an stock out increases, resulting in higher stock out costs.

The total inventory will decrease, therefore, the carrying costs will also decrease.

4 0
2 years ago
Which sentences describe points that Miguel should consider in the goal-setting process before he starts to invest?
ki77a [65]

Answer:

First, Miguel arrives at an estimate of the total returns that he wants from his investments.

Explanation:

Plato :)

4 0
2 years ago
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
creativ13 [48]

Answer:

Option 2 is slightly better.

Explanation:

Giving the following information:

They’ve offered you two different salary arrangements. You can have $85,000 per year for the next two years, or you can have $74,000 per year for the next two years, along with a $20,000 signing bonus today.

To determine which of the options is better, we need to calculate the present value. To do this we will assume an interest rate of 10% per year compounded annually.

PV= FV*(1+i)^n

<u>Option 1:</u>

PV= 85000/1.10 + 85,000/1.10^2= $147,520.66

<u>Option 2</u>:

PV= 20,000 + 74,000/1.10 + 74,000/1.10^2= 148,429.7

Option 2 is slightly better.

3 0
2 years ago
Other questions:
  • Soda bubbles corporation makes and sells soft drinks. talia buys and drinks a soda beverage, which proves defective and injures
    12·1 answer
  • Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The com
    12·1 answer
  • When SW International declared a dividend of $20,000,000, its market value increased from $8 billion to $8.5 billion. However, i
    11·1 answer
  • Northwoods Backpackers is a retail catalog store in Vermont that specializes in outdoor clothing and camping equipment. Phone or
    5·1 answer
  • Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per tel
    9·1 answer
  • Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estim
    13·1 answer
  • Jacob is a customer whose sales region code is 14. He had bought goods worth $150 from ABC company in June. He does not have dea
    7·1 answer
  • Skippers Landing sells boats and provides mooring facilities for its customers. Skippers Landing sells the boats for $60,000 eac
    14·1 answer
  • Freytag Corporation's variable overhead is applied on the basis of direct labor-hours. The company has established the following
    10·1 answer
  • Three times a year previous donors receive donation cards in the mail from the local zoo. This organization also markets to visi
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!