An annuity is set up that will pay $1500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 6%

Answers

Answer 1

Answer: The present value of the given annuity is $ 11040.13.

Explanation:

To calculate the present value for a given annuity, we use the equation:

[tex]PV=PMT\times \frac{(1-(\frac{1}{1+r^n}))}{r}[/tex]

where,

PV = present value

PMT = fixed annuity amount = $1500

r = rate of interest = 6 % = 0.06

n = time period = 10 years

Putting values in above equation, we get:

[tex]PV=\$ 1500\times \frac{(1-(\frac{1}{1+0.06^{10}}))}{0.06}\\\\PV=\$ 1500\times \frac{(1-(\frac{1}{1.06^{10}}))}{0.06}\\\\ PV=\$ 1500\times 7.36\\\\ PV=\$ 11040.13[/tex]

Hence, the present value of the given annuity is $ 11040.13.


Related Questions

Which scenario describes the highest level of productivity?
A. Producing 25 shoes using resources that cost $50
B. Producing 50 shoes using resources that cost $25
C. Producing 50 shoes using resource that cost $50
D. Producing 100 shoes using resources that cost $100

Answers

Answer:

B. Producing 50 shoes using resources that cost $25

Explanation:

Productivity is described as a measure of efficiency. An increase in efficiency results in an increase in productivity.  Productivity is the efficient use of resources. It is the ability to give more output using fewer resources.

An increase in productivity is an increase in production using proportionate fewer resources. In this case, producing 50 shoes with resources of $25 is the most efficient way of using resources from the list produced.

Answer:B

Explanation: you make more shoes at a lower price than the other answers showing productivity

Normative account captures what people often do when they are first introduced to computer and

information technology. (T/F) true or false explain why?​

Answers

Answer:

In order to implement "privacy" in a computer system, we need a more precise definition. We have to decide when and under what conditions to give out personal information. Specifically, we must decide when to allow anonymous transactions and when to require accountability. If there are subgroups in society, or countries, with differing ideas about the answers to these questions, technology can, to a large extent, accomodate each group. There does not necessarily have to be only one privacy regime. Less law and more user choice is possible now; technology can provide every user with controls fine-tuned for the balance of privacy and accessibilty that they prefer.

Explanation:

every march, evan who owns and operates a small retail shop takes a large box of recipets and invoices to his accountant so the accountant can file evans taxes in april. only then does evan know if his business has been profitable evan could benefit from an

Answers

Answer:

Management information system

Explanation:

MANAGEMENT INFORMATION SYSTEM is vital and Paramount for any business, company or organization because it enables them to know whether their business is profitable or not.

Secondly with MANAGEMENT INFORMATION SYSTEM a company can easily gather information that are relevant or important which will help them during decision making process.

Lastly with MANAGEMENT INFORMATION SYSTEM information can easily be presented in a such a way that the user of such information will have a good understanding of it Just as in the case of Evan.

Therefore based on the information given about Evan, Evan could benefit from MANAGEMENT INFORMATION SYSTEM.

3) When there are more substitutes for a product, the ________ for the product is ________. A) demand; less price elastic

Answers

Answer:

Explanation:

When there are more substitutes for a product, the demand for the product is more price elastic. The implication of this is that the demand of such product will drop when there is increase in it price because people can get another product which will play the same role with the previous at a lesser price. Hence, the demand for the product vis more price elastic.

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta equals:

Answers

Answer: 1.33

Explanation:

Beta is a measure of how a stock moves in relation to the market and so can be calculated by the formula:

Beta = Change in stock / Change in market

= -1.6%/-1.2%

= 1.33

The Occupational Safety and Health Act does not require employers to abide by the regulations and the safety and health standards created by OSHA.


True

False

Answers

The answer is False

g Suppose you place a lump-sum tax on a monopolist. How will that affect its output and pricing decisions

Answers

Answer:

The lump-sum tax placed on the monopolist will result to a decrease in production output and an increase in the price of the product.

Explanation:

In Economics, a monopolist is an entity with almost total control of a market or industry.  Since it is not a price taker, it determines the production quantity and the market price of its product.  By its nature, a monopoly, which is a product of extreme capitalism, is not good for an economy.  Some of the disadvantages of a monopoly are the restriction of market output, the charging of higher prices than in a more competitive market, and the reduction of consumer surplus and economic welfare.

On April 1, Magenta Company sells $500,000 face amount, 10% bonds. The bonds pay interest semi-annually on June 30 and December 31. The effective rate for this company is 9%. When the bonds are issued, how much interest will be included in the issue price

Answers

Answer:

$12,500

Explanation:

interest expense = $500,000 x 10% x 3/12 = $12,500

The dirty price of the bonds will include accrued interest expense. The bonds are issued at a premium since the market rate is lower than the coupon rate, but the amortization of the premium will reduce future interest expense, it cannot reduce past events.

A/V professionals work in school libraries.
A.
True
B.
False

Answers

I think it’s B but I could be wrong I’m sorry

Answer:

Your answer should be (B) If i am remembering right

Explanation:

gIf Tom Neal, the store team leader in Glastonbury, England, empowers his team to accomplish more, he is performing a ________ role.

Answers

Answer: task

Explanation:

If Tom Neal, who is the store team leader in Glastonbury, England, empowers his team to accomplish more, he is simply performing a task role.

Task roles are the actions of the individuals which are vital for the completion of a particular project or task.

The unit rate for 63 meters in 36 minutes

Answers

Answer:

1.75

Explanation:

Divide distance by time

is the money you receive from work that you do and from
money that you invest.

Answers

Yes and now that you have money that you invested with your time you get to chose where it gose to.

Answer:

Money received for work is/are _____.

taxes

wages

mean salary

expenses

i think its wages

Is the resource demand curve of a firm operating in an imperfectly competitive industry more or less elastic than the resource demand curve of a firm operating in a perfectly competitive industry? Is a firm operating in an imperfectly competitive industry more or less responsive to resource price changes than a firm operating in a perfectly competitive industry?

Answers

Answer:

1. The resource demand curve of a firm operating in an imperfectly competitive industry is less elastic than the resource demand curve of a firm operating in a perfectly competitive industry.

2. A firm operating in an imperfectly competitive industry is less responsive to resource price changes than a firm operating in a perfectly competitive industry.

Explanation:

In an imperfectly competitive industry, the goods and services are heterogeneous, with few sellers and buyers, competition for market share, and the sellers are not price-takers.  Since they are not identical, and sellers are not price-takers as in a perfectly competitive market, the sellers can increase prices when a resource price (cost) has increased, and still they earn economic profits.  However, their ability to earn profits will depend on the quantities of goods produced and sold.

You are considering investing in a security that will pay you $80 in interest at the end of each of the next 10 years. If this security is currently selling for $588.81, then the IRR for investing in this security is closest to:

Answers

Answer:

the internal rate of return is 6%

Explanation:

The computation of the irr is shown below

Given that

Initial investment = $588.81

And yearly cash flows for the next 10 years is $80

Now for determining the internal rate of return we have to apply the formula

= IRR()

After applying the internal rate of return formula, the internal rate of return is 6%

Hence, the internal rate of return is 6%

the firm finds that its marginal revenue is less than its marginal cost. to maximize profit, this firm will

Answers

Answer: b. decrease production to maximize profit.

Explanation:

Economic theory holds that to maximize profits, one should produce at a level where Marginal cost equals Marginal revenue. At this point, resources are being utilized fully but anything past this point will result in MC > MR.  

This company is past that point of production which is why they are in their current predicament. To solve this, they should decrease production till they get to a point where Marginal Revenue = Marginal cost.

If a company uses $1,500 of its cash to purchase supplies, the effect on the accounting equation would be:

Answers

Answer:

Assets increase $1,500

liabilities increase $1,500.

Explanation:

Based on the information given in a situation where the company make uses of the amount of $1,500 of its cash to purchase supplies which means that the the effect on the accounting equation would be: Assets increase with amount of $1,500 while liabilities on the other hand will increase with amount of $1,500 reason been that Cash is an asset which will increase the assets because it was used to purchase supplies leading to increase in liabilities.

A $102,500 mortgage has monthly payments for 25 years, at 6.25% interest. How much are the monthly payments

Answers

Answer:

$676.16

Explanation:

We are required to find the monthly payments (PMT). This can be calculated using a financial calculator as follows :

PV = $102,500

P/yr = 12

i = 6.25%

N = 25 × 12 = 300

FV = $0

PMT = ?

Using a Financial Calculator to enter the values as above, the PMT will be $676.16. Therefore, he monthly payments on the mortgage are $676.16.

Describe service problems you encountered in a recent service experience. Then categorize the service failures that occurred as tangible, reliability, responsiveness, assurance, or empathy. Name some products that have a high degree of quality. Are these products generally associated with successful companies

Answers

Answer and Explanation:

Service failures are as follows:

Tangibility: Suppose customer approaches an electronic shop to purchase a television and he was waiting for sales person for a long time also no one is there for helping the customer so the sales person presence is not there that leads to service failure

Reliability: According to the sales person, the customer purchase the television but at the time of usage the television is not working so this leads to service failure

Responsiveness: When the customer complaints about not working of the television so the sales person does not respond this leads to service failure

The products that have high quality involves sony, HTC smart phones and these quality products would be from companies that are successful

The financial analysis component of a business plan is to describe

a. how your business will be organized and what type of management or department structure
your business will have

b. the ?big picture? behind your business, what your business has to offer the consumer, and
why your business will be successful

c. the size of the market, how your business will fit into the market, and how your business will
stand out from other businesses in the market

d. where the funds to start and operate your business will come from, when you expect to see
profit, and how much profit you expect to see

Answers

Answer:

Option D

Explanation:

Option D explains more in terms of financial aspects

Answer:

D.where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see.

Explanation:

Did on edge 2021

Problem 5 Using the quarterly unit sales data for 2020 calculate the quarterly sales forecast using the seasonal index approach for 2021 if annual demand for 2021 is expected to be 400 units. 2020 Q1 30 Q2 110 Q3 10 Q4 80 The expected sales in Quarter 2 of 2021 is:

Answers

Answer:

The quarterly sales forecast for 2021, using the seasonal index approach:

            Estimated 2021 Sales

Q1               52

Q2             191

Q3               17

Q4            140

Total        400

Explanation:

a) Data and Calculations:

Annual demand for 2020:

            2020 Sales          Estimated 2021 Sales

Q1               30                      52 (30/230 * 400)

Q2             110                      191 (110/230 * 400)

Q3              10                        17 (10/230 * 400)

Q4             80                      140 (80/230 * 400)

Total       230                     400

b) The seasonal index approach uses an average to compare an actual observation relative to an estimated observation based on the removal of annual seasonal variations.

(02.03 MC)
When shopping for a savings account you should look for one that offers
O annual fees
O loyal customer fees
O simple interest
O compounding interest

Answers

Answer is A hope this helps

How would you engage a customer who is looking for a specific brand of headphones, e.g., Apple AirPods

Answers

Answer:

By informative communication

Explanation:

In simple words, if any customer has a particular brand in his or her mind while shopping then the best to way to interact with hem is to support their desire and inform them as much as you can for their product. By doing so you indulge them in a mutual relationship and they will be fully engaged in the process. After that one can offer them other products of different brands.

In February 2009, the Dow Jones Industrial Average was at a level of about 8,000. In mid-2018, it was about 24,500. Would you expect the Dow in 2018 to be more or less likely to move up or down by more than 40 points in a day than in 2009

Answers

Answer and Explanation:

Given that

There is a level of approx 8,000 in feb 2009

And there is a level of approx in mid 2018 is 24,500

Also there is 40 points

Now based on the above information

Average movement per day in both the cases would be

= 8,000 ÷ 365

= 21.92 point

And,

= 24,500 ÷ 365

= 67.12 points

So it would be more in 2018 as it represent 67.12 points i.e. more than 40 points

Bearing false witness means spreading false rumors about a person. (T/F) true or false ​

Answers

Answer:

tttttttttttttuuuuuuuuurrrrrrreeeee

Discuss why employees who are committed will be less likely to engage in work withdrawal even if they are dissatisfied.

Answers

Answer:

Due to organizational loyalty

Explanation:

In simple words, an individual who is committed to their work or organization will still work at his or her best if even if they are not very satisfied with the their current conditions. This is due to the loyalty that they develop over time. These strong feelings somehow force them to give their best and make them realize that this is not a permanent situation and things will change in future.

Some companies have traditionally been known for their excellence in tangibles, e.g., Xerox in copiers, IBM in computers, who now describe themselves as primarily service companies. Do you agree

Answers

Answer:

I Do agree

Explanation:

I Do agree with this statement. Both Xerox and IBM have made a name for themselves by selling their tangible products. This slowly began changing and the market became saturated with similar products and competitors as well as changing and evolving technology. They, therefore, began switching their focus on offering their clients professional services which they can use with any product from any company. For example, IBM went from creating personal computers to offering such services as

Application Development

Application Management.

Business Analytics & Strategy.

Big Data & Analytics

Cloud Business Solutions

Digital Operations.

Enterprise Applications (Alliances)

An elevator operator was a common job four decades ago, but few jobs remain today. The unemployment created by the introduction of automatic elevators is:

Answers

Answer: Structural unemployment

Explanation:

Structural unemployment occurs when the skills needed by the job market are not the skills that unemployed people have.

It usually happens as a result of an improvement in technology because the technology introduced would make the skills that the previous workers had obsolete.

In this scenario, the introduction of more efficient elevators reduced the need for elevator operators so their skills were no longer needed and they became unemployed.

Nominal GDP is multiple choice 1 the sum of intermediate and final goods and services, whereas real GDP is the sum of final goods and services only. determined in g

Answers

Answer: b. market or money value of all final goods and services produced by the economy in a given year, whereas real GOP is adjusted for inflation

Explanation:

Nominal GDP for a given year refers to the final value of all goods and services in the country using the current year prices.

Real GDP however, makes it easier to compare the nominal GDP to past GDPs because it removes the effects of inflation by using prices from a base year to calculate GDP. This way it can be seen if the economy actually grew.

) ________ are likely a fixed cost of a firm. A) Wages paid to employees B) The payments for supplies C) Lease payments for office space

Answers

Answer:

C) Lease payments for office space

Explanation:

The fixed cost is the cost that remains fixed whether the production level changes or not

So as per the given choices, the option c would be selected i.e. lease payment made for office space as it would be independent with respect to the quantity generated also it would be paid even there is no production take place

Therefore the option c is correct

Firm A is worth $200 million as an independent firm and Firm B is worth $30 million as an independent firm. Firm A currently has 4 million shares outstanding and Firm B has 6 million shares outstanding. If the firm's merge the total value of the merged firm is $240 million. Suppose Firm A offers to buy Firm B for $6.50 a share and the boards of both firms have agreed to the deal. However, the market is unsure whether regulators will approve the merger and thus they believe that the deal will only go through with a probability of 1/2. Given this information: (a) What would the stock price of Firm B to be immediately after the announcement of the merger agreement

Answers

Answer:

The stock price of Firm B to be immediately after the announcement of the merger agreement is:

= $5.75

Explanation:

a) Data and Calculations:

Worth of Firm A as an independent firm = $200 million

Firm A's outstanding shares = 4 million

Share price of Firm A = $50 ($200/4) per share

Worth of Firm B as an independent firm = $30 million

Firm B's outstanding shares = 6 million

Share price of Firm B = $5 ($30/6) per share

The total value of the merged firm (Firm A & B) = $240 million

Price offered for Firm B = $6.50

Probability of deal going through = 0.5 (1/2)

Probability of deal not going through = 0.5 (1 - 0.5)

Value of Firm B with deal going through = $39 million ($6.50 * 6 million)

Value of Firm B with deal not going through = $30 million

Expected value of Firm B under probability = ($39 * 0.5) + ($30 * 0.5) million

= $34.5 million

Share price of Firm B = $5.75 ($34.5 million/ 6 million)

b) The share price of Firm B immediately after the announcement of the merger agreement will depend on the expected values of the deal going through and the deal not going through.  These are weighted and then divided by the number of outstanding shares to get the price per share.

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