Answer:
The correct answer is B.
Explanation:
Giving the following information:
One year ago, Deltona Motor Parts deposited $16,500 in an investment account to buy new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today.
To calculate the future value of the investment, we need to use the following formula:
FV= PV*(1+i)^n
First deposit= 16,500*(1.045^4)= 19,676.56
Second deposit= 12,000*(1.045^3)= 13,694
Third deposit= 20,000*(1.045^2)= 21,840.5
Total= $55,211.06
Answer:
5.52%
Explanation:
Cost of Furniture= $150,000
discount= 5.25% (120-day note)
To get the exporter's true effective annual financing cost, we have:
![150,000*[1-(0.0525*120/360)] = 147,375](https://tex.z-dn.net/?f=%20150%2C000%2A%5B1-%280.0525%2A120%2F360%29%5D%20%3D%20147%2C375%20)
=(150,000/147,375) 365/120-1 = 5.52%
Therefore, the exporter's true effective annual financing cost is 5.52%
Answer:
$116,499.15
Explanation:
To find the amount he will have to invest today, we have to find the present value of $500,000 at the 6% interest rate
PV = FV (1+r)^-n
PV = Present value
FV = Future value = $500,000
R = interest rate = 6%
N = number of years = 25
$500,000 ( 1 + 0.06) ^-25 = $116,499.15
I hope my answer helps you
Answer:
More Elastic ; Lerner Index Decline
Explanation:
Elasticity denotes the responsive change in a product's demand, due to change in its price. Higher the elasticity, the more quantity change due to price change, vice versa.
Lerner Index depicts the market power a firm has. Higher elasticity means consumers have many close alternatives & L is small, signify less market power. And, Vice versa case for low L.
Orange Inc players has monopoly i.e sole seller privileges in the MP3 players market, with few close substitutes. As, more types of players are introduced in the market :
- Orange Inc has more competitors & close substitute goods providers, now in the market. So, increase in substitute availability will increase the Elasticity of Orange' demand
- Increase in Elasticity means implies that consumers have many options, market power of Orange & its representative L index falls.
Answer:
Present value after 34years = 1000000
Cash flow at present= 5000
Using
PV= CF(1+R)^t
1000000=5000(1+R)^34
R=1.169-1
R=0.168(16.8%)
