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Sindrei [870]
2 years ago
15

Present value calculations The present value or "PV function" in Excel is used to calculate the current value of future payments

. Consider this example: Suppose your uncle sends you a $10,000 certificate of deposit in your name which will earn 4% interest for the investment period. Under the terms of his gift, you can withdraw the funds after 4 years on the day of your graduation. Use Excel functions to calculate the value of the amount your uncle deposited today to have $10,000 after you graduate. (Note: The certificate of deposit calculates and pays any earned interest at the beginning of each year.)
Business
1 answer:
FromTheMoon [43]2 years ago
6 0

Answer:

PV= $8,548.04

Explanation:

Giving the following information:

Final value= $10,000

n= 4 years

i= 4% compounded annually.

We need to use the following formula:

PV= FV/(1+i)^n

PV= 10,000/(1+0.04)^4

PV= $8,548.04

Your uncle needs to deposit $8,548.04 today in order to have $10,000 in four years.

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A dealer in British pounds who thinks that the pound is about to depreciate:
natima [27]

A dealer in British pounds who thinks that the pound is about to depreciate may want to lower both his bid price and his ask price.

<u>Option: A</u>

<u>Explanation:</u>

The value of the bid corresponds to the top rate a customer pays for a safe. The value which is asked refers to the cheapest rate, which got agreed by a supplier for a service.The variance among these two costs is referred to as range; the narrower the range is, the growing the liquidity of the protection provided.

The average consumer is contending with the bid and asking dissemination as an implied exchange cost. For an instance, if security A's current price quotation is $20.40/$20.45, shareholder X, who is looking into buying A at the current market value, would charge $20.45, whereas shareholder Y, who wants to sell A at the current market value, would receive $20.40.

7 0
2 years ago
The Bureau of Labor Statistics reported the CPI stood at 215.9 in December 2009, while one year earlier it was 210.2. Suppose Ja
makvit [3.9K]

Answer:

Annual rate of inflation = [(215.9 - 210.2) / 210.2] * 100

Annual rate of inflation = 2.7%

Real income change = Nominal income change - inflation rate

Janice Real income change = 4% – 2.7%

Janice Real income change = 1.3%

This means Janice's real income did increase by 1.3%.

Jeff Real income change = 2% – 2.7%

Jeff Real income change = -0.7%

This means Jeff's real income did decrease by 0.7%.

7 0
2 years ago
Isa is head of housekeeping services at the Ashworth Hotel, a luxury hotel and resort. Last week, she received 29 customer compl
Lena [83]

Answer:

c. 67,757 errors per million opportunities

Explanation:

The computation of the errors per million opportunities is shown below:

= Customer complaints last week ÷ total guest stayed in that week × 1,000,000

= 29 customers ÷ 428 guests × 1,000,000

= 67,757 errors per million opportunities

Hence, the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

3 0
1 year ago
Pottery Unlimited has two product lines: cups and pitchers. Income statement data for the most recent year follow:
HACTEHA [7]

Answer:

- ($51,306)

Explanation:

Given that,

Loss of Contribution = $75,000

Fixed costs will be eliminated by dropping the CUP line = $23,694

Net loss on dropping cup line:

= Loss of contribution - Gain on fixed costs on dropping cup line

= $75,000 - $23,694

= - ($51,306)

Therefore, the net effect on dropping the cup line on net income is $(51,606).

5 0
1 year ago
A pharmaceutical manufacturer offers monetary incentives to its sales representatives to promote a new drug to the medical profe
Advocard [28]

Answer:

pull strategies                            

Explanation:

A pull tactic is a method used to get one to the consumer. Rather of pressing the company into the client, pull approach includes the use of pull strategies or knowledge exchange to draw the consumer. Such clients would also continue selling the company for you.

The industry words pushing and pulling emerged in manufacturing and business process planning, but are now commonly used in promotions, as well as becoming a concept commonly used in hospitality delivery. Walmart is indeed an example of a corporation employing the push vs. pull technique.

6 0
2 years ago
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