Suppose you just bought a 20-year annuity of $7,500 per year at the current interest rate of 10% per year. (Do not round intermec calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
What is the value of your annuity today? Present value $ 6818.18
What happens to the value of your investment hs interest rates suddenly drop to 5% ? Present value $ _____
What happens to the value of your investment if interest rates suddenly rise to 15% ? Present value $ _____
Answers
Present Value of Annuity = PMT x [{1 - (1 / (1 + i)^n) } / i]PMT = $7,500, n = 20, and i = 10%Using these values in the above formula, we can find out the present value of annuity as shown below: PV = $7,500 x [{1 - (1 / (1 + 0.1)^20) } / 0.1]= $68,181.81 ≈ $6818.18
PMT = $7,500n = 20i = 5%PV = ?Using the above formula, we can calculate the present value of annuity when interest rate drops to 5% as shown below: PV = $7,500 x [{1 - (1 / (1 + 0.05)^20) } / 0.05]= $102,610.59 ≈ $102610.60What happens to the value of your investment if interest rates suddenly rise to 15%?PMT = $7,500n = 20i = 15%PV = ?Using the above formula, we can calculate the present value of annuity when interest rate rises to 15% as shown below: PV = $7,500 x [{1 - (1 / (1 + 0.15)^20) } / 0.15]= $39,354.26 ≈ $39354.30Therefore, the present value of annuity is $6818.18 when the interest rate is 10% per year, $102610.60 when the interest rate drops to 5%, and $39354.30 when the interest rate rises to 15% per year.
To know more about annuity visit:-
https://brainly.com/question/30380188
#SPJ11
Related Questions
getting to know what your customers want, need, and care about is question 6 options: a waste of time. one of the chores of doing business. good customer service. only important in certain businesses
Answers
Answer:
Good customer service
Explanation:
Tax and spending decisions made by the president and Congress.
fiscal policy
fiscal period
fiscal expenses
Answers
Any tax and spending decisions made by the president and Congress is known as a fiscal policy.
What is a fiscal policy?In economics, a fiscal policy refers to those policy that are used by governments to stabilize the economy, most specifically, by manipulating allocations of taxes and government expenditures. These policies are used in tandem with monetary policy to achieve certain goals.
In an overview, the goals of both fiscal and monetary policy are to maintain full employment, high rate of economic growth and stabilize prices and wages. Therefore, the tax and spending decisions made by the president and Congress is known as a fiscal policy.
Read more about fiscal policy
brainly.com/question/6583917
#SPJ1
what were capital resources in the kingdom of mocha
Answers
Answer:
Bartering and the use of natural resources
Explanation:
It is correct
madison corporation sells three products (m, n, and o) in the following sales mix: 3:1:2. unit price and cost data are: m n o unit sales price$7 $4 $6 unit variable costs 3 2 3 total fixed costs are $340,000. the break-even point in composite units for the current sales mix (round to the nearest unit) is: select one: a. 17,000 b. 20,000 c. 102,000 d. 51,000 e. 34,000
Answers
Calculating the break-even point and rounding up to the nearest unit gives the answer of 18,889 composite units, which is closest to option A: 17,000.
To calculate the break-even point, we need to determine the contribution margin per composite unit:
Contribution margin per unit M = Sales price per unit M - Variable cost per unit M
= $7 - $3 = $4
Contribution margin per unit N = Sales price per unit N - Variable cost per unit N
= $4 - $2 = $2
Contribution margin per unit O = Sales price per unit O - Variable cost per unit O
= $6 - $3 = $3
Contribution margin per composite unit = (3 × contribution margin per unit M) + (1 × contribution margin per unit N) + (2 × contribution margin per unit O)
= (3 × $4) + (1 × $2) + (2 × $3)
= $18
Next, we can use the contribution margin per composite unit to determine the break-even point:
Break-even point (in composite units) = Total fixed costs ÷ Contribution margin per composite unit
= $340,000 ÷ $18
= 18,888.89
Rounding up to the nearest unit gives the answer of 18,889 composite units, which is closest to option A: 17,000.
Learn more about the break-even point at
brainly.com/question/29063970
#SPJ4
What are some reasons that a bank statement might not match a cash balance of a business's records? Choose all answers that are correct.
Question 1 options:
posted payments on credit cards
bank errors
outstanding deposits
service charges
recorded checks
outstanding checks
Answers
Answer:
outstanding deposits, outstanding checks, posted payments on credit cards
Explanation:
Bank errors, Outstanding Deposits, Service Charges, and Outstanding checks are some reasons that a bank statement might not match the cash balance of a business's records. The correct options are B, C, D, and F.
What information does a bank statement provide?Name, address, account number, and bank branch information are all listed on bank statements for account holders. Additionally, a summary table that displays the statement's time frame, opening and closing bank balances, deposits made to the account, refunds, and cash withdrawals is included. In addition, fines levied by your bank as well as declined or canceled payments will appear on your statements.
Differences between the two records could be the result of Deposits in transit: The firm may have received cash or cheques, but the bank may not have yet recorded them. Outstanding checks are ones that have been issued but have not yet been processed. Bank service fees: Banks frequently deduct service fees.
Thus, the ideal options are B, C, D, and F.
Learn more about Bank Statement here:
https://brainly.com/question/22786262
#SPJ2
external cost of expanding or building airport
Answers
Answer:
External costs may involve or interact and be impacted by the environment, society, or economic travesty, especially ones that were uncalled-for.
External costs depend on many things, including area, time, and space, but will mostly be a few hundred thousand U.S.D.
PLEASE HELP IVE TAKEN THIS TEST 5 TIMES.... 41 points
an investor purchased 50 shares of stock in a company for $600. one year later, the investor sold all 50 shares for $13 per share. what is the investors rate of return?
Answers
The rate of return for the investor is 8.33%.
First share price: The investor paid $600 for 50 shares, making the initial share price ($600 / 50 shares) $12.
Profit from the sale of shares: The investor made $650 after selling all 50 shares at a price of $13 each.
Compute the difference between the ending sum and the starting investment to determine the profit made:
$650 - $600 = $50
Rate of return: To represent the rate of return as a percentage, divide the profit by the initial investment and multiply the result by 100.
($50 / $600) * 100 = 8.33%
The rate of return for the investor is 8.33%.
Read more about investment here:
https://brainly.com/question/27717275
#SPJ1
The Bridal Shop bought a dress from a supplier for $105 wholesale and applied a 65% markup to the price. If a 7. 5% sales tax were added after a 20% discount was used, what would be the total cost to purchase the dress?.
Answers
Based on the various additions as well as discount, the total cost of the dress would be $149.00
The cost of the dress after the markup would be:
= Wholesale cost x ( 1 + markup)
= 105 x (1 + 65%)
= 105 x 1.65
= $173.25
After the discount, the cost is:
= 173.25 x (1 - 20%)
= $138.60
The cost after the sales tax is:
= 138.60 x (1 + 7.5%)
= $148.995
= $149.00
In conclusion, the cost of the dress is $149.00
Find out more on such at https://brainly.com/question/216245.
The relative price of two goods is shown by:
a. the slope of an indifference curve.
b. the slope of the budget line.
c. the diminishing marginal rate of substitution.
d. the slope of the income-consumption curve.
e. none of the above.
Answers
The correct answer is b.the slope of the budget line.
the relative price of two goods is shown by:
b. the slope of the budget line.
the budget line represents the different combinations of two goods that a consumer can afford given their income and the prices of the goods. the slope of the budget line represents the rate at which one good can be exchanged for the other. this slope is the relative price of the two goods.
for example, if the price of good x is $2 and the price of good y is $4, the slope of the budget line would be -2 (rise of -2 units of y for every 1 unit of x). this indicates that in order to obtain 1 additional unit of x, the consumer must give up 2 units of y, reflecting the relative price of the two goods.
Learn more about Income here:
https://brainly.com/question/14732695
#SPJ11
Describe how to make an electronic payment.
Answers
Answer:
In the explanation. :)
Explanation:
Each bank as similar ways when it comes to making an electronic payment. Once you are in your bank information on your phone or computer, you can set up a payment in the payments/bills section. You add the information to the bill you wish to pay and then you send the amount you want to pay ont he date you schedule it for.
Hope this helps. Have a great weekend.
similar jobs outside the HCO is known as ____
Employee protection is good for healthcare organizations because___ and ___
Answers
Similar jobs outside the healthcare organization (HCO) are known as "comparable jobs" or "equivalent jobs." Comparable jobs can be found in sectors such as education, hospitality, government, and finance.
These are positions in different industries that require similar skills, qualifications, and responsibilities as those found within the HCO. Employee protection is beneficial for healthcare organizations because it ensures the well-being and safety of their workforce. By implementing measures such as workplace safety protocols, proper training, and compliance with labor laws, healthcare organizations can minimize the risk of workplace accidents, injuries, and illnesses. Additionally, employee protection fosters job satisfaction and loyalty, as employees feel valued and cared for by their organization.
Moreover, protecting employees helps maintain a positive organizational reputation, attracting talented individuals to join the healthcare industry. In summary, similar jobs outside the HCO are referred to as comparable or equivalent jobs. Employee protection benefits healthcare organizations by promoting a safe and healthy work environment, increasing employee satisfaction and retention, and enhancing the organization's reputation.
To know more about the organization visit:
https://brainly.com/question/28477679
#SPJ11
Drag each option to the correct location.
Match the scenarios to the factors that affect the labor market.
foreign direct investment
outsourcing
immigration
Answers
Each scenario should be matched to the factors that affect the labor market as follows:
Immigration: Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.Foreign direct investment: A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.Outsourcing: A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.What is immigration?Immigration can be defined as the movement of a group of people from one geographical region to another geographical destination such as a city, especially in search of any of the following:
Good governanceSecurityBetter living conditions.WorkJobsSocial amenitiesWhat is a foreign direct investment?A foreign direct investment (FDI) simply refers to a type of investment which is made by an individual or business organization (investor) into an investment market that is located in another country.
In conclusion, an example of foreign direct investment (FDI) is a US supermarket chain that is planning to open a few supermarkets in a country in Europe.
Read more on immigration here: brainly.com/question/9809956
#SPJ1
Answer:
Post Test: Free Market and Businesses
Unit: 2
Economics
Question #12
__________________________________________________________
This is 100% right because I took the test
Go to explanation for picture with answers
l
l
∨
Explanation:
Here's the picture and I hope this helped!
Have a nice day!
Of these common qualifications for Energy careers, select those you already have, or would like to gain. Check all that apply.
mechanical knowledge
computer skills
critical-thinking skills
concentration skills
physical stamina
teamwork and communication skills
math skills
Answers
Of these common qualifications for Energy careers, those skills one would like to gain are:
A. mechanical knowledgeB. computer skillsC. critical-thinking skillsD. concentration skillsF. teamwork and communication skillsG. math skills.What skills are important required in the energy sector?Some example of career in energy sector are welder, transmission system operator, wind turbine technician, electrician, surveying technician, water treatment specialist, nuclear power reactor operator, solar panel installer.
The skills that are most attractive to the energy industry include communication, leadership and management and those suitable for project-based working. It is a very dynamic industry where hard graft, team work and understanding of social and environmental responsibilities is expected.
Read more about energy sector
brainly.com/question/27799684
#SPJ1
Define the term "minimum acceptable rate of return" (MARR) (2)
3.2 For Mashinini Enterprises, the current MARR is set at 11%. Would the MARR be adjusted upwards or downwards for the following scenarios:
(a) An increase in the company tax rate, set by the South African Renenue Service. (2)
(b) The perceived risk on a project is high (2)
(c) There are a large number of projects to choose form (2)
Motivate your answer for each of the scenarios.
Answers
The minimum acceptable rate of return (MARR) is the minimum rate of return or discount rate that an investor or company requires in order to undertake an investment or project.
It represents the minimum rate at which the expected benefits of an investment should exceed the costs or risks associated with it. An increase in the company tax rate set by the South African Revenue Service: The MARR would be adjusted upwards. When the tax rate increases, it directly affects the cash flows generated by the investment. require a higher rate of return to compensate for the additional risk. By increasing the MARR, the investor is demanding a greater return to offset downwards. In a situation where there are many investment opportunities available, investors may lower their MARR to consider a potential investments to meet the required rate of return, thereby increasing the chances of finding suitable projects to undertake. Overall, the adjustments to the MARR depend on the specific circumstances of the investment, such as changes in tax rates, perceived risk levels, or the availability of alternative projects, and are intended to align the expected returns with the associated risks and opportunities.
learn more about return here:
https://brainly.com/question/31191087
#SPJ11
which promotional issue is when promotion stimulates demand?
Answers
In case whereby, promotion stimulates demand, then it could bring about lower prices for consumers which can be regarded as promotional issue to the brand.
For demand to be stimulated, the customers needs are expected to be understood by the brands, and this is at the center of marketing communications.We can conclude that for promotion to stimulates demand, the result could be lowering of price of goods for the consumer.
Learn more at:
https://brainly.com/question/24591855?referrer=searchResults
The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even
Answers
Answer:
The correct answer is "2000 units".
Explanation:
Given:
Fixed cost,
F = $50,000
Variable cost,
VC = $100 per unit
Price,
P = $125 per unit
Let the units to be sold be "x".
Throughout the case of breakeven,
⇒ \(Total \ revenue=Total \ cost\)
⇒ \(125x=50000+100x\)
On subtracting "100x" from both sides,
⇒ \(125x-100x=50000+100x-125x\)
⇒ \(25x=50000\)
⇒ \(x=\frac{50000}{25}\)
⇒ \(=2000 \ units\)
Are fixed costs considered to be anticipated or unanticipated costs? are variable costs considered to be anticipated or unanticipated costs?.
Answers
Answer:
anticipated (Think)
Explanation:
The term fixed cost refers to a cost that does not change with an increase or decrease in the number of goods or services produced or sold. Fixed costs are expenses that have to be paid by a company, independent of any specific business activities. This means fixed costs are generally indirect, in that they don't apply to a company's production of any goods or services.
Would a client benefit from downgrading their subscription?
Answers
Yes, a client benefit from downgrading their subscription.Whether a client would benefit from downgrading their subscription would depend on a variety of factors such as their budget, their usage of the service, and the features offered in the different subscription plans.
If a client isn't taking advantage of all of the services available in their current subscription plan, downgrading to a lower plan may be an excellent way to save money.
However, if the client is utilising all of the capabilities and the reduction would impede their capacity to efficiently utilise the service, it may not be a sensible move.
Before making any modifications to their subscription package, clients should thoroughly examine their needs and usage.
For such more question on subscription:
https://brainly.com/question/31377662
#SPJ11
A contract must exist for end users of products to be able to sue manufacturers under tort for injuries. Select one: True False
Vicarious performance of a contract by a third party is where the contracting party remains liable for the performance. An example of such would not include employees. Select one: True False
Answers
The given statement, "A contract must exist for end users of products to be able to sue manufacturers under tort for injuries," is false because a contract is not required for end users of products to sue manufacturers under tort for injuries.
The given statement, "Vicarious performance of a contract by a third party is where the contracting party remains liable for the performance. An example of such would not include employees," is false because Vicarious performance of a contract by a third party is where the contracting party is not liable for the performance.
A contract is not required for end users of products to sue manufacturers under tort for injuries. Tort law provides a legal avenue for individuals to seek compensation for harm caused by the negligence or wrongful actions of others, including manufacturers. In product liability cases, the injured party can bring a tort claim based on theories such as negligence, strict liability, or breach of warranty.
These claims are not dependent on the existence of a contractual relationship between the manufacturer and the end user. Instead, they focus on the duty of care owed by the manufacturer to ensure the safety of their products and the harm caused by their failure to meet that duty.
Vicarious performance of a contract by a third party does not hold the contracting party liable for the performance; instead, the third party assumes the responsibility for fulfilling the contractual obligations. For example, if Party A hires Party B to provide a service, and Party B subcontracts the work to Party C, Party B becomes liable to Party A for Party C's performance. In this scenario, Party A's liability is not affected by Party C's actions.
This concept is known as vicarious performance because the performance of the contract is carried out indirectly through a third party, relieving the contracting party of direct responsibility for the third party's actions.
Learn more about contract: https://brainly.com/question/984979
#SPJ11
A firm that is committed to keeping manufacturing facilities in only the home country (and not developing multiple production sites in a variety of countries) can Multiple Choice not mitigate the effects of exchange rate changes. lessen the effect of exchange rate changes by pursuing a strategy of diversifying the markets in which the firm's products are sold. lessen the effect of exchange rate changes by pursuing a strategy of selling commodity products without product differentiation. pursue a strategy of increasing its products price elasticity of demand.
Answers
Answer:
lessen the effect of exchange rate changes by sourcing from where input costs are low
Explanation:
State 5 differences betweeen a stencil suplicator and a spirit duplicator
Answers
Answer:
spirit duplication is a method of reproducing documents where a spirit duplicator is used. The master copy is prepared from which copies are produced.
I hope is helpful
please i want to be a branalist
Explanation:
costs that a firm remaining in business will still incur even if it halts current production are called
Answers
if people decide to purchase more at every price level, __________ (shift right) will result.
Answers
If people choose to buy more at every price level, it will result in a shift right in the demand curve. This shift indicates an increase in the quantity demanded across various price points.
When consumers increase their purchasing quantity at every price level, it implies a higher demand for the product or service. In the context of demand and supply, this change is reflected in the demand curve.
A shift to the right of the demand curve indicates an increase in demand. The shift signifies that at each price point, consumers are willing and able to purchase a larger quantity of the product or service.
This can occur due to various factors such as changes in consumer preferences, increased disposable income, effective marketing campaigns, or positive changes in market conditions. As a result, suppliers may respond by adjusting their production levels to meet the increased demand.
To learn more about demand curve, click here: brainly.com/question/35960826
#SPJ11
Kaylin works in the Manufacturing career cluster. The daily tasks of her career involve looking at ways that her company is at risk for causing problems to the health of its workers. She also analyzes those problems and comes up with solutions to implement.
What job does Kaylin most likely have?
Occupational Health and Safety Specialist
Environmental Science and Protection Technician
Quality Control Analyst
Product Safety Engineer
Answers
Answer:
A-Occupational Health and Safety Specialist
Explanation:
Occupational Health and Safety Specialist. Hence, option A is appropriate.
What is the meaning of Health?A state of complete physical, mental, and social well-being is referred to as health. A balanced diet and consistent exercise are necessary for a healthy life cycle. Additionally, one needs to maintain appropriate hygienic practices, live in a decent shelter, and get adequate sleep.
Your lifestyle should include a commitment to good health. A healthy lifestyle can aid in the prevention of chronic diseases and debilitating conditions. Your self-esteem as well as self-image depend on how you feel about yourself and how well you take care of your physical and mental well-being. Living a healthy lifestyle means taking care of your body.
Personal health is divided into five categories: physical, emotional, social, spiritual, and intellectual.
The WHO Constitution defines "health" as "a condition of complete physical, mental, and social well-being and not only the absence of disease or disability." Balanced health is based on five pillars: activity, diet, sleep, stress reduction, and social interaction. While we can borrow from or swap out part of the balance in one area for another, when we take too much of too many of these fundamentals, our general health begins to deteriorate.
Hence, option A is correct.
Learn more about Health here:
https://brainly.com/question/30034245
#SPJ6
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
Answers
Important factirs to consider when applying for a credit card include APR, credit limit, penalties and fees. Hence, the missing phrase should be credit card.
Credit cards allows individuals to make purchases and spend up to a certain amount and then pay later. These offer comes with regulations such as interest, limit which can be spent on the card, penalties for defaulting on payment. All these differs based on financial institutions as some are more flexible than others.Hence, the factors mentioned above should be considered when applying for a credit card.
Learn more : https://brainly.com/question/25510991
The most effective strategy for reducing the number of american women working as prostitutes would be to?
Answers
Answer:
Raise women's wages for other jobs that doesn't require as much skill.
the richest countries have consumed (so far) nearly 80% of all commercial energy despite having only 20% of the:
Answers
Even though they only make up 20% of the world's population, the richest nations have consumed roughly 80% of all commercial energy.
What three items account for around 80% of the energy we consume today?Fossil fuels, which include coal, oil, and natural gas, have been supplying the majority of the world's energy for more than 150 years.
What portion of global carbon emissions may be attributable to the 20 richest nations?An estimated 47% of the world's CO2 emissions are attributable to the richest 10 percent of the population. This is the outcome of a recent study that examined how reducing global poverty might affect carbon emissions and was published in the journal Nature Sustainability.
Why do wealthier nations consume more energy?Currently, affluent nations and countries with large populations consume the most commercial energy. This is brought on by a high concentration of industry, a high rate of car ownership, and a high rate of domestic use from houses full of appliances.
Learn more about global poverty: https://brainly.com/question/2132981
#SPJ4
When using the substitution method to solve this system of equations, which of the following represents the first step?
Answers
Explanation:
The first step in using the substitution method to solve a system of equations is to solve one of the equations for one of the variables in terms of the other variable(s). This will allow you to substitute the expression you found into the other equation and solve for the remaining variable(s).
A _____ is a person who does a job for a specified time period, usually less than six months. For example, some agricultural workers are often employed only for harvesting. Entrepreneur job sharing flexible work hours temporary employee
Answers
Answer:
Temporary employee.
Explanation:
A temporary employee is a person who does a job for a specified time period, usually less than six months. For example, some agricultural workers are often employed only for harvesting.
Basically, a temporary employee refers to an individual who is employed by an organization based on the specific requirements and needs of the organization and the job is typically limited to a specific period of time. Thus, once the agreed upon time elapse, the employee's service will no longer be needed and as such its terminated.
This type of employment is a contractual agreement between the employee and the employer for he or she to be employed for a limited period of time.
Answer:
Temporary Employee
Explanation: I took the test and got all of the answers right.
You plan on retiring 33 years from today. How much will you need to invest each month assuming you can earn an annual rate of 8% in order to meet your goal of $6 million assuming monthly compounding?
Assume you have no money saved toward retirement so far
Answers
You need to invest $3,649.29 per month to reach your goal of $6 million.
Given that you plan on retiring 33 years from today and you have no money saved toward retirement so far. You want to find how much you will need to invest each month assuming you can earn an annual rate of 8% in order to meet your goal of $6 million assuming monthly compounding.
To calculate the monthly investment needed to reach the goal of $6 million, we use the formula for the future value of an annuity:
FV = P * (((1 + r/n)^(nt) - 1) / (r/n))
where P is the monthly investment, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the time period in years. Substituting the given values, we have:
FV = $6,000,000, r = 8% = 0.08, n = 12 (monthly compounding), t = 33 years. FV = P * (((1 + r/n)^(nt) - 1) / (r/n))
$6,000,000 = P * (((1 + 0.08/12)^(12*33) - 1) / (0.08/12))
$6,000,000 = P * (1643.95662563)
P = $6,000,000 / (1643.95662563)
P = $3,649.29 (rounded to the nearest cent)
Learn more about the future value of an annuity: https://brainly.com/question/33138987
#SPJ11