Because the dividend was just paid, you have to start with $0 as CF 0 because you did not get the $1.93
A dividend is a distribution of income by an agency to its shareholders.[1] while a business enterprise earns an income or surplus, it is able to pay a percentage of the earnings as a dividend to shareholders. Any amount not allotted is taken to be re-invested within the business (referred to as retained income). The recent 12 months' income in addition to the retained income of previous years is available for distribution; an organization is commonly prohibited from paying a dividend out of its capital.
Distribution to shareholders can be in coins (usually a deposit right into a financial institution account) or, if the business enterprise has a dividend reinvestment plan, the quantity can be paid via the issue of further shares or by using proportion repurchase. In some cases, the distribution can be of property.
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evaluate and explain: a. compared to pure monopoly and pure competition, monopolistically competitive industries multiple choice 1 may earn economic profits. profits will remain constant as competitors enter, and there will be productive efficiency. may earn economic profits, but profits will diminish as competitors enter. there will be productive inefficiency. will earn economic profits. profits will remain constant as competitors enter, and there will be productive efficiency. will earn economic profits, but profits will diminish as competitors enter. there will be productive efficiency. b. true or false. in the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits. multiple choice 2 true, since p < mc, but the lack of available close substitutes pushes the price of the average firm up until it equals atc. true, since p > mc, but the availability of close substitutes pushes the price of the average firm down until it equals atc. false, since p < mc, but the lack of available close substitutes pushes the price of the average firm up until it equals atc. false, since p > mc, but the availability of close substitutes pushes the price of the average firm down until it equals atc.
In the comparison of pure monopoly and pure competition, the monopolistically competitive industries might have economic profits, they will diminish as competitors enter, and there will be productive inefficiency. The Option C is correct.
What are monopolistically competitive industries?The monopolistically competitive industries means those industries that contain more than a few firms, each of which offers a similar but not identical product. The fast food market is an example because the fast food market is quite competitive and yet each firm has a monopoly in its own product.
In the long run, the monopolistic competition leads to a monopolistic price but not to monopolistic profits, the statement is true since P > MC, but the availability of close substitutes pushes the price of the average firm down until it equals ATC. The Option A is correct.
What is a monopolistic competition?A monopolistic competition occurs when many companies offer a competing products or services that are similar but not perfect or substitutes one. The barriers in a monopolistic competitive industry are low and the decisions of any one firm do not directly affect its competitors.
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brokers who charge low overheads, low fees and commissions but offer no additional services other than executing trade transactions are called .
Discount brokers are those who don't provide any additional services besides executing trade transactions and charge low overhead, low fees, and commissions.
A stockbroker who executes buy and sell orders for little or no commission is known as a discount broker.
Discount brokers do not offer the same level of counseling or advice regarding investments as full-service brokers do.
A sizable portion of the fintech market is made up of discount online brokers. Discount brokers often only fill client orders, but do so at a lower cost. These brokers don't provide their clients with individualized consultations, recommendations, research, tax preparation, or estate planning services. Discount brokers may charge less because they do not offer these services and do not have to spend money making transactions with wealthy clients.
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which of the following is not an advantage of private debt over public debt? group of answer choices it does not dilute the ownership of a firm. it is liquid. it need not be registered with the u.s. securities and exchange commission. it has to have interest and principal payments made upon it.
The statement that is not an advantage of private debt over public debt is it has to have interest and principal payments made upon it.
Non-public debt refers to loans to groups that are not supplied by means of banks or public markets and alternatively are supplied by way of personal investors and personal markets. The demand for non-public debt has grown since the 2008 financial crisis as banks have decreased their lending hobby (especially to SMEs).
Private debt also sits higher within the capital shape than equity while imparting lower volatility and income-primarily based returns. Given issues over inflation and rising interest rates, the floating-charge nature of private debt is every other factor that could make it an appealing asset magnificence.
There can be two alternatives open to you with regard to selling your personal debt. One is to promote it outright, which could result in you now not receiving the overall amount of cash owed to you, simplest the amount that the debt collection corporation pays for the debt.
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derrick, a car salesman, is paid $500 for every car he sells. this is an example of a schedule of reinforcement.
Derrick, a car salesman, is paid $500 for every car he sells. this is an example of a Fixed ratio a schedule of reinforcement.
An reinforcement schedule is known as fixed ratio. Following the conclusion of several responses, reinforcement is given according to this schedule. The quantity of answers needed never changes. The schedule is identified as FR, where the number represents the quantity of responses required to achieve reinforcement. One of the four schedules for rewarding behaviour that operant conditioning uses is fixed ratio reinforcement.
Sales are activities associated with selling or the quantity of goods sold within a specified time frame. Sales also include the provision of services in exchange for payment. A salesman is a man whose job it is to offer goods or services for sale. The word "salesman" is pluralized to salesmen. Saleswoman is the equivalent term for women.
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whenever the additional revenue from the last unit of output exceeds the additional cost of that unit, a profit-maximizing firm should
Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit, a profit-maximizing firm should produce more in order to increase profits.
Revenue is the entire quantity of earnings generated through the sale of goods and services related to the primary operations of the business. industrial revenue will also be called income or as turnover. some corporations acquire sales from interest, royalties, or different fees.
Revenue is the total amount of income generated by means of the sale of products or services associated with the enterprise's primary operations. revenue, additionally known as gross sales, is regularly known as the "top line" because it sits on the pinnacle of the profits declaration.
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north american industry classification system (naics): select one: a. is used to classify firms in other regions besides north america. b. can be used to identify target marketing strategies and marketing mix strategies. c. create homogeneous groupings of resellers, producers, and institutions. d. facilitates trade among firms in the world trade organization. e. helps firms identify the number, size, and geographic dispersion of potential business customers.
North American Industry Classification System (NAICS): c. create homogeneous groupings of resellers, producers, and institutions.
The required details for North American Industry Classification System (NAICS) in given paragraph
The North American Industry Classification System (NAICS) is the same old utilized by Federal statistical companies in classifying enterprise institutions for the cause of collecting, analyzing, and publishing statistical statistics associated with the U.S. enterprise economy. NAICS is a collaborative attempt through Mexico's Instituto Nacional de Estadística y Geografía (INEGI),Statistics Canada, and the United States Office of Management and Budget(OMB), via its Economic Classification Policy Committee (ECPC), staffed through the Bureau of Economic Analysis(BEA), the Bureau of Labor Statistics(BLS), and the Census Bureau. The gadget is designed to be in large part well suited with the United Nations Statistical Office's International Standard Industrial Classification gadget (ISIC). NAICS variations are launched each 5 years.
With the primary version, launched in 1997, NAICS supplied greater insurance of the provider sector, relative to SIC. The 2002 revision accommodated large modifications within side the Information Sector. The 2012 revision barely decreased the variety of industries and changed six sectors.
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In the context of forecasting errors, _____ eliminates the measurement scale factor.
In the context of forecasting errors, b. mean absolute percentage error eliminates the measurement scale factor.
In the field of business, mean absolute percentage error can be described as a statistical method to analyze the percentage accuracy of a forecast in business.
The mean absolute percentage error helps in minimizing the measurement scale factor as by knowing the mean absolute percentage error, a businessman can understand the changes he needs to implement to the scale factor. The different measures can be predicted and eliminated through the mean absolute percentage error.
Although a part of your question is missing, you might be referring to this question:
In the context of forecasting errors, _____ eliminates the measurement scale factor.
a. mean absolute deviation
b. mean absolute percentage error
c. normalized mean signed deviation
d. normalized root mean square error
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Businesses that use a __________ strategy focus on a narrow market segment or niche.
The 'focus' strategy involves focusing on a narrow, defined segment of the market, also called a 'niche' segment.
What is focus strategy?A focus strategy is a way to create, advertise, and sell goods to a certain niche market, which could be a particular customer group, product line, or geographic region. A focus strategy would be centered on the development of marketing strategies for your business while attempting to forge new connections with your target market.Focus is a tactic that allows a business to control a niche. Your business focuses on a specific area of the market through the use of a focus strategy. Businesses that use a focus strategy are aware of the dynamics and particular customer requirements of their market niche.To learn more about focus strategy refer to:
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the presence of price controls in a market usually is an indication that select one: a. an insufficient quantity of a good or service was being produced in that market to meet the public's need. b. the usual forces of supply and demand were not able to establish an equilibrium price in that market. c. policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers. d. policymakers correctly believed that, in that market, price controls would generate no inequities of their own
A coverage maker is anybody who creates thoughts and plans, specially these carried out through a enterprise or government.
A mayor, a school board, a corporation's board of directors, and the President of the United States are all coverage makers. Policy refers to the plans that a government or commercial enterprise follows.
How do policymakers communicate?Be clear and concise and keep away from emotive or politicised language and explain why your lookup is relevant. Your target market may additionally no longer always be an specialist in your area so keep away from jargon and acronyms but do not down – you are speaking with intelligent people.
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https://brainly.com/question/474395#SPJ4changes in the value of a financial position created by foreign currency changes between the establishment and the settlement of a contract is called
Transaction exposure refers to variations in a financial position's value brought on by foreign exchange fluctuations between the contract's establishment and settlement.
Transaction exposure refers to the level of risk that companies involved in international trade face as a result of currency fluctuations. A high level of exposure to exchange rates can lead to significant losses, despite the fact that steps can be taken to reduce those risks.
This exposure arises from the variation in foreign exchange rates between the booking and settlement dates of a transaction.
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Main Idea What luxuries do you think would have a higher price elasticity than others? Give three examples and explain why you think they would have an exceptionally high elasticity.
Examples of luxuries that will have price elasticity than others are:
Luxurious carsFirst-Class FlightsJewelry.The reason they would have high elasticity is that they categorized as luxurious based on their quality. Hence, those who purchase them will make a buying decision based on which provides a higher quality and as such a more elevated status symbol.
What is price elasticity?The price elasticity of demand for an item is a measurement of how sensitive the amount sought is to its price. When the price of an item rises, the amount required reduces for virtually all of them, although it falls more for some than others.
A product is deemed elastic if a price adjustment produces a significant change in either its supply or demand. In general, it signifies that the product has suitable replacements. Cookies, fancy autos, and coffee are a few examples.
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Budgets and capital spending rules are the most important ________ controls in subunits within multinational firms.
Budgets and capital spending regulations are the two most significant bureaucratic controls in subunits of multinational corporations.
How is bureaucratic control applied?
In order to affect employee behavior and assist a company in achieving its objectives, bureaucratic control uses formal mechanisms. In order to influence, monitor, and evaluate employee performance, formal systems of rules, roles, records, and awards are used in bureaucratic management.The part of bureaucracy known as bureaucratic control is involved with regulating organizational behavior by means of organizational structure. Through hierarchies, roles, policies, norms, procedures, and other structural measures that standardize operations, it replaces direct control by managers with indirect control.The modern corporation is yet another illustration of bureaucratic management.To learn more about Bureaucratic control refer to:
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fiddlestix company has experienced rapid growth over the past year. during the annual company meeting, employees expressed frustration regarding their responsibilities. many of the employees are confused as to which employees are responsible for which task and when they are expected to complete them. the assignment of work to subordinates is referred to as
Implement a hierarchy of authority is the ask and when they are expected to complete them. the assignment of work to subordinates is referred to as. Hence, option D is correct.
What is hierarchy of authority?For instance, an accounts receivable associate reports to the accounting manager, who in turn reports to the operations manager. If the accounts receivable system consistently produces erroneous data, you can use the chain of command to determine who is responsible.
The arrangement of members is called an authority-based membership hierarchy. This hierarchy includes everyone from entry-level employees to senior managers or executives.
Thus, option D is correct.
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The options are missing-
a) Switch, from a wide to a narrow of control for managers
b) allow workers to specialist in multitasking
c) eliminate the chain of connect Within the organization
d) implement a hierarchy of authority
a place where people can go to enjoy not only gambling but also find a hotel room, food and beverage, retail shops, entertainment, or even a spa is called:
A place where people can go to enjoy not only gambling but also find a hotel room, food, and beverage, retail shops, entertainment, or even a spa is called the casino industry. Thus the correct option is D.
What is gambling?Gambling is defined as the act of risking anything of value on the outcome of a game while being aware of the risk and hoping to benefit. One is either inclined to gamble addiction or not; there is no one specific cause.
A casino is a location or a structure where people can meet to participate in specific gambling activities. It is a location where people can cash in on their gaming endeavors. A hotel room, food, and drink, retail stores, entertainment, or even a spa can all be found there.
Therefore, option D is appropriate.
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The complete question is probably
A place where people can go to enjoy not only gambling but also find a hotel room, food and beverage, retail shops, entertainment, or even a spa is called:A) gaming entertainment industry B) the food and lodging industry C) a shopping mall D) the casino industry
Seybert systems accounts for its investment in wang engineering bonds as available-for-sale. seybert's balance in accumulated other comprehensive income with respect to the wang investment is a credit balance of $29,000, and seybert reports the investment as $160,000 on its balance sheet. seybert purchased the wang investment for (ignore taxes):
The cost to purchase the Wang investment is determined to be $131,000 in total.
How do you define investment?A purchase made for the purpose of earning money or appreciating in value is known as an investment. When an asset's value rises over time, this is referred to as appreciation. When someone invests in a product, their goal is to use it to build wealth in the future rather than to consume it now.
When an asset is bought with the hope of making a profit, such asset is said to be an investment. A specific rate of return can be used to measure the profit or return that an investment can provide.
Investment $160,000
Less: Unrealized gain ($29,000)
Fair value $131,000
Due to the fact that there is a credit balance. It indicates a $29,000 increase in the stock's value.
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true or false: organizational culture refers to the system used to create job levels and hierarchies within a company. true false question. true false
False. The rules and values that all employees adhere to collectively are referred to as organisational culture.
In the past, there have been disagreements among researchers over what constitutes organisational culture. The subject of organisational culture is fascinating. Investigating your organisational culture can give you insightful knowledge that will help you confidently move forward with your goals.
Leading expert in the field Schein defined "organisational culture" as a collection of traits, a common "pattern of basic assumptions" that group members have grown accustomed to as they gain experience and knowledge successfully resolving both internal and external organizationally relevant issues.
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what is the primary goal of a community relations department? multiple choice to improve the financial bottom line. to build relationships with important community groups. to collaborate with other company teams to create policy. both of these answers are correct: to build relationships with important community groups; and to collaborate with other company teams to create policy.
The primary goal of a community relations department is to build relationships with important community groups.
Community relations are thought to help society in both directions. It promotes goodwill among the locals—your potential customers—and supports the growth of the community as a whole. It positions businesses as civically and ethically responsible in their local communities.
Today, word-of-mouth marketing reigns supreme. Combining your community relations approach with public relations outreach can do wonders for building buzz about your company. The ensuing media coverage promotes favorable perception of your company among the locals, bringing customers straight back to you.
Your network will expand rapidly if you devote more effort to community relations. You might begin to draw in prospective investors and gain new clients.
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the common stock of teak design is currently priced at $52.50 per share. one year from now, the stock price is expected to be either $54 or $60 per share. the risk-free rate of return is 4 percent. what is the per share value of one call option on teak stock with an exercise price of $55?
The per share value of one call option on teak stock with an exercise price of $55 is $0.41.
A stock, also known as fairness, is a safety that represents the ownership of a fraction of the issuing business enterprise. units of stock are referred to as "stocks" which entitles the owner to a percentage of the organization's assets and earnings identical to how a whole lot stock they very own.
A call option is a right to buy without an responsibility to shop for. So if you have a call choice on TCS then you definitely have the right to shop for TCS but no responsibility to buy TCS at a pre-decided charge.
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a granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. for the current period, unprocessed wheat was purchased for $450,000, and the following quantities of product and sales revenues were produced. product pounds price per pound feed 110,000 $ 2.00 flour 48,000 2.20 starch 18,000 3.00 how much of the $450,000 cost should be allocated to feed if the value basis is used?
A granary allocates the price of unprocessed wheat to the manufacturing of feed, flour, and starch. for the present-day duration, unprocessed wheat became bought for $261,000.
fee of unprocessed wheat = $450,000
value of feed = $2 x one hundred ten,000 = $220,000
cost of flour = $2.20 x 48,000 = $one zero five,600
price of starch = $3 x 18,000 = $fifty four,000
the overall cost of feed, flour, and starch = cost of feed + price of flour + cost of starch
= $220,000 + $one zero five,six hundred + $54,000
= $379,six hundred
Percent of the cost of unprocessed wheat that needs to be allotted to feed = value of feed/ overall price of feed, flour, and starch
=220,000 / 379,600
= cost of unprocessed wheat x percent of the cost of unprocessed wheat that should be allotted to feed
= $450,000 x fifty eight%
= $261,000
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annual rates of natural increase classified as being very low (0.0 percent or less) are represented throughout which continent:
On the continent of Europe, there are annual rates of natural increase that are very low (0.0 percent or less).
The term annual percentage rate (APR) describes the annual interest that is produced by a sum that is owed to investors or charged to borrowers. The annual percentage rate, or APR, is a measure of the actual cost of continent borrowing money over the course of a loan or the income generated by an investment. This includes any fees or extra costs related to the annual rates transaction, but does not account for compounding. Consumers can compare lenders, credit cards, and investment products using the APR, which gives them a concrete number to work with.
The term "interest rate" refers to an annual percentage rate. By factoring in things like monthly payments and fees, it determines what proportion annual rates of the principal you'll pay each year. APR is another term for the annual rate of interest paid on investments that excludes the effect of continent interest that has accrued during the year.
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which type of company is best-suited for contracting out manufacturing in an effort to reduce economic exposure as the result of exchange rate movements?
A textile company is the kind of business that is best suited for outsourcing manufacturing in an effort to lessen economic exposure to fluctuations in exchange rates.
How is business impacted by exchange rate volatility?Competition may be impacted by exchange rate fluctuation. A decline in the number of imports may result from the local currency's depreciation making importing items more expensive. As a result of higher sales, profitability, and employment, domestic enterprises should profit from this.
In what ways is manufacturing impacted by currency rates?The proportion of imported inputs in total inputs and the pace at which imported and locally produced inputs are substituted determine how much the exchange rate affects a manufacturing activity's ability to compete and how profitable it can be.
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norma installs a new motor in its manufacturing equipment. the new motor is expected to increase output by 20%. the cost of the new motor should be capitalized because it:
The cost of the new motor should be capitalized because due to the rapid expansion in the construction of new jails and prisons and the lack of knowledge regarding the building materials, machinery, and systems that should be used.
What is capitalization?Capitalization is an accounting technique in which a cost is added to the value of an asset and deducted during the asset's useful life as opposed to being deducted at the time the cost was spent. Market capitalization is also used to describe the total market worth of a firm and is calculated by multiplying the number of outstanding shares by the share price. A cash outlay is recognised as an asset on the balance sheet rather than as an expense on the income statement by using the accounting principle known as capitalization. Capitalization is a numerical evaluation of a company's capital structure in finance.
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reluctance to hire people in uncertain economic times is partially because there are high costs to terminating employees caused by:
Reluctance to hire people in uncertain economic time is partially because there are high costs to terminating employees caused by the loss of investment in training an employee.
Another reason for such reluctance in hiring is lawsuit for wrongful termination.Over the past five years, uncertainty has emerged as a major theme. Business executives have expressed uncertainty about a variety of issues, including the European fiscal crisis, the debt ceiling, the elections, the recovery from the recession, and the fiscal stimulus initiatives.
Their major concern right now is the so-called "fiscal cliff," a combination of tax increases and expenditure cuts totaling $600 billion that are scheduled to go into effect in 2013 if Congress and the Obama administration cannot come to an agreement.
Business owners are concerned that they will have to pay more taxes, while investors are apprehensive that higher capital gains taxes will cause them to suffer financially.
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present value. what is the most you would be willing to pay now to get $500 next year and another $500 in two years if the going interest rate for assets like that is 6%?
We know Present value=Future value/(1+r)t
present value=500/1.062=444.9982
thus the maximum amount you would be willing to pay=444.9982
The gift fee is the amount of money that ought to be invested will gain a specific destiny aim. The future fee is the dollar amount to be able to accrue over the years while that sum is invested.
The present value measures the impact of time on cash. Gift price is what an amount of cash or a sequence of cash flows paid within the future is well worth these days at a price of interest referred to as the “discount” rate. The gift fee is used to plan for monetary goals and to make investment selections.
Gift value is important because it allows traders to compare values over the years. PV can assist buyers to investigate destiny financial blessings of modern assets or liabilities. Used in areas like monetary modeling, inventory valuation, and bond pricing, based on future returns, investors can calculate the present fees.
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if a company wants to develop a zero tolerance policy on sexual harassment, the company's policy should include a provision to:
If a company wants to develop a zero tolerance policy on sexual harassment, the company's policy should include a provision To constitute actionable sexual harassment the conduct complaint of need not necessarily include sexual overtone.
Sexual harassment includes unwelcome sexual advances, requests for sexual favors, and different verbal or bodily harassment of a sexual nature inside the place of job or studying environment, in line with the identical Employment possibility fee (EEOC).
Harassment and bullying are abusive ways of treating others. folks that harass or bully use merciless feedback, gestures, threats, or movements. they are trying to insult, demean, exclude, disgrace, or hurt others. now and again, those who harass and bully do it with sexual comments or moves.
Harassment's effect on an man or woman can variety from simple irritation to severe depression. folks who are subjected to those sorts of conduct can lose their morale. As a end result, they're often disrupted and are unable to pay attention completely on their obligations.
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the corbit corp. sold merchandise for $10,000 cash. the cost of the merchandise sold was $7,590. the journal entries to record this transaction under the perpetual inventory system would be group of answer choices
The journal entries to record this transaction under the perpetual inventory system would be
Debit : Cash 10,000
Credit : Sales 10,000
Debit : Cost of Goods Sold 7,590
Credit : Inventory 7,590
What is transaction ?A financial transaction is an agreement or communication between a buyer and a seller to exchange goods, services or property for payment. Every transaction involves a change in the financial position of two or more companies or individuals. A financial transaction always involves one or more financial assets, usually money or some other valuable item such as gold or silver.
There are several types of financial transactions. The most common type, purchase, occurs when a good, service or other good is sold to a consumer for money. Most purchases are made with cash payments, including physical currency, debit cards, or checks. Another important form of payment is credit, which provides immediate access to funds in return for repayment at a later date.
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What will happen to the amount of interest you owe as you pay down a loan?
A: It will stay the same
B: It will not need to be paid
C: It will continue to decrease
D: It will continue to increase
Answer:
C: It will continue to decrease
Explanation:
Answer: C
Explanation:
The answer is C because -once you pay what you owe, the money you owe will start to decrease because you have already paid some of the loan back.
which option is backed only by the reputation of the issuer? multiple choice secured bonds long-term financing debenture bonds venture capital
Debentures are only supported by the issuer's creditworthiness and reputation. Debentures are a common way for both businesses and governments to raise money.
Debenture: What is it?A debenture is a bond that is not backed by the issuing company's assets but rather simply by its good name. Investors purchase this form of bond because they think the entity, or corporation, issuing it is in good financial standing.Debentures are only supported by the issuer's creditworthiness and reputation. Debentures are a common way for both businesses and governments to raise money.There are four different kinds of debentures: first and second, convertible and non-convertible, registered and bearer, secured and unsecure, and registered and bearer.Debentures include things like Treasury bonds and Treasury bills.To learn more about Debentures refer to:
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not all jobs are intrinsically motivating. for example, many entry-level jobs often involve repetitive and simple tasks that can become rapidly boring. how can managers motivate frontline employees (such as fast-food cashiers, trash collectors, supermarket cashiers, etc.) to perform at high levels?
Complimenting, praising their efforts, and sometimes giving them charge of something can help in motivating frontline employees who are involved in repetitive jobs.
People that involve in repetitive tasks such as entry-level, cashiers every single day lead to feeling bored and fed up. In this case, motivation coming from the manager or senior works deep and impactful. Giving the employee incentives every time they work extra hard to make things work well, praising those efforts, and trying to shift them periodically to some new department to work on in order to make them refresh and better exposure. Creating mentor programs, and meditation sessions, rewarding long-term employees, encouraging them to have a life outside of work and jobs and having them come back recharged (reward and recognition tools act as extrinsic motivation).
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georgetown leasing leased a car to a customer. georgetown will receive $150 a month, at the end of each month, for 48 months. use the pv function in excel to calculate the answers to the following questions 1. what is the present value of the lease if the annual interest rate in the lease is 12%? 2. what is the present value of the lease if the car can likely be sold for $3,000 at the end of four years?
If the car may likely be sold for $3,000 at the end of the lease's four years, the present value of the lease payment is $4,577.2409.
At the end of each month, you must pay $150.
The total number of months is 48, or 4 years.
The annual compounded rate is equal to 12%.
Let The payment at the end of 48 months is equal to the present principle value, or P, which is $150. 150 dollars multiplied by 48 months equals 7,200 dollars.
Now, using the compound approach
The amount at 48 months is equal to the present value.
So , $ 7200 = P × (1+12/100)^4
Or, $ 7200 = P × (1.12)^4
So , $ 7200 = P × 1.573
∴ P = = $ 4,577.2409
Hence The lease payment's present value is $4,577.2409.
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