The worth of Lilli's CD at the end of 3 years is $2,714.23.
What is the worth of the CD?When an amount earns interest that is compounded quarterly, it means that both the amount invested and the interest accrued increases in value every quarter or once in four years.
The APR is an abbreviation for annual percentage rate. It is the amount that is earned in total every year. In order to determine the quarterly interest, divide the APR by 4.
Here is the formula that can be used to determine the value of the amount at the end of 3 years:
FV = P (1 + r)^nm
Where:
FV = Future value P = Present value R = interest rate = 2.75% / 4 = 0.6875%m = number of compounding = 4N = number of years = 32,500 x (1 + 0.006875)^(3 x 4)
2500 x (1.006875)^12 = $2,714.23
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When the price of a bar of chocolate is $1. 00, the quantity demanded is 100,000 bars. When the price rises to $1. 50, the quantity demanded falls to 60,000 bars. Calculate the price elasticity of demand using the mid-point method.
The price elasticity of demand using the mid-point method is -1.25.
% change in quantity = [ ( Q2 - Q1 ) / Q1 ] 100 = [ ( 60,000-100,000 ) / 100,000 ] 100 = -40 %
% change in price = [ ( P2 - P1 ) / P1 ] 100 = [ ( 1.5-1 ) / 1 ] 100 = 50 %
Elasticity of demand = % change in Q / % change in P = -40/50 = -0.80
b )
P1 = $ 1.5
Q1 = 60,000
P2 = $ 1
Q2 = 100,000
% change in quantity = [ ( Q2 - Q1 ) / Q1 ] 100 = [ ( 100,000-60,000 ) / 60,000 ] 100 = 66.67 %
% change in price = [ ( P2 - P1 ) / P1 ] 100 = [ ( 1-1.5 ) /1.5 ] 100 = -33.33 %
Elasticity of demand = % change in Q / % change in P = 66.67 / -33.33 = -1.25.
Price elasticity of demand for a good is a measure of the sensitivity of quantity demanded to the price of that good. As prices rise, quantity demanded falls for most goods, but falls more for some. Price elasticity provides the percentage change in quantity demanded a 1% increase in price, keeping everything else constant. If the elasticity is −2, it means that a 1% increase in price leads to a 2% decrease in quantity demanded. Other elasticities measure how quantity demanded changes with other variables.
Price elasticity is negative except in special cases. If we say that good has an elasticity of 2, that almost always means that the good has an elasticity of −2 by the formal definition. The expression "more elastic" means that the elasticity of the goods is greater than that, ignoring the sign. Veblen and Giffen's goods are two goods with positive elasticity, with rare exceptions to the law of demand.
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The individual accounts in a general ledger are frequently assigned a number according to the _____________ _____________ _____________ .
The individual accounts in a general ledger are frequently assigned a number according to the chart of Accounts.
A chart of accounts (COA) is a list of financial accounts, usually compiled by accountants, for an organization and used by accountants to record transactions in the organization's ledger. Accounts can be added to the account chart as needed; they usually will not be deleted, especially if a transaction has been recorded on the account or if there is a balance other than 0.
Accounts are usually grouped into categories, such as assets, liabilities, equity, income, and expenses.
Accounts can be associated with an identification number (account number) and caption or title and are coded according to the account type. In a computerized accounting system with quantifiable accounting, accounts can have quantitative measurement definitions. Account numbers can use numeric, alphabetic, or alphanumeric characters. However, in many computerized environments, such as the SIE format, only numeric recognition is allowed.
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_____is purchased in carload shipments, where each carload contains enough steel for 1,000 parts.
steel is purchased in carload shipments, where each carload contains enough steel for 1,000 parts.
What is Delivery order?
A delivery order is a written request for the release of the conveyance of cargo to another party from a consignee, owner, or his agent of freight carrier. In most cases, the written order authorizes the direct delivery of the items to a warehouseman, carrier, or other individual who, as part of their regular job, provides warehouse receipts or bills of lading. A delivery order is defined as "an order delivered by an owner of goods to a person in possession of those goods (the carrier or warehouseman), directing that person to deliver the items to a person identified in the order." This definition is taken from the Uniform Commercial Code (UCC).
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If deferred tax assets are expected to not be reversed, it should be treated as:________
If deferred tax assets are expected to not be reversed, they should be treated as Equity.
What is Equity?
Equity in the context of finance refers to ownership of assets with potential obligations such as debts.
For accounting purposes, equity is calculated by deducting liabilities from the value of the assets.
The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle.
A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined timeline.
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As jonelle walks through a market, she picks up a peach and odorants waft up to her nose. Where are the odorants transduced into signals that her brain will be able to process?.
The olfactory epithelium is where the odorants are transduced into signals that her brain will be able to process
This is further explained below.
What are odorants?Generally, a substance is put into a product in order to give it a certain scent after it has been manufactured.
Proteins that are capable of binding odor molecules and play a vital role in the sense of smell are referred to as olfactory receptors. These receptors are also known as smell receptors.
When odorants engage receptor proteins, which are found on hairlike cilia at the ends of sensory cells, a neurological reaction may be induced. It's possible for a single odorant to have an effect on several receptors, but to varying degrees in each circumstance.
In conclusion, The olfactory epithelium is the part of her nose that is responsible for converting odorants into signals that her brain can understand.
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Materials a company acquires to use in making products are called:____.
a. raw materials inventory.
b. finished goods inventory.
c. conversion costs.
d. cost of goods sold.
e. work in process inventory.
Materials a company acquires to use in making products are called raw materials inventory.
Raw material inventory, Raw material inventory refers to the goods used to make a company's product or inventory. In other words, they are the materials needed to manufacture various goods. The raw materials can be anything from wood and nails to make furniture or flour, eggs and butter used to make products for a bakery. The cost of this part of the inventory is reported as raw materials inventory on the company's balance sheet.Work-in-process inventory, Work-in-progress inventory refers to goods that have not been completed or wholly produced. Examples of this type of inventory include chocolate that still needs icing at the chocolate factory, shoes that haven't been colored, and essential oils that haven't been bottled by a healthcare manufacturer.Finished goods inventory, finished goods refer to products or inventory that are ready to be sold by a company. These items have completed the production cycle. Finished goods previously consisted of raw materials as well as work in process. Examples of finished goods inventory include finished goods baked in a bakery, t-shirts finished by a clothing designer and homes completed by home builders.You can learn more about materials inventory here brainly.com/question/27842177
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The human relations movement proposed that better human relations could increase worker productivity. True or false?.
TRUE
The human relations movement proposed that better human
relations could increase worker productivity.
What is TQM(Total Quality Management )?
Total Quality Management (TQM) is a comprehensive approach led by top management and supported throughout the organization that is dedicated to continuous quality improvement, training, and customer satisfaction.
Total quality management (TQM) refers to the continuous process of detecting, reducing, or eliminating errors.It is used to improve customer service, streamline supply chain management, and ensure employee training.The goal is to continuously improve internal practices in order to improve the quality of an organization's outputs, including goods and services.The goal of total quality management is to hold all parties involved in the manufacturing process accountable for the overall quality of the final product or service.TQM is commonly defined by eight guiding principles, which range from focusing on customers to continuously improving and adhering to processes.
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If production remains the same and all prices double relative to the base year, then the gdp deflator is:________
If production remains the same and all prices double relative to the base year, then the GDP deflator is Nominal GDP.
The GDP price deflator, also known as the GDP deflator or the implicit price deflator, estimates price changes for all products and services produced in a country.
The GDP price deflator tracks price fluctuations for all products and services produced in an economy.
Using the GDP price deflator allows economists to compare real economic activity levels from one year to the next.
Because it is not dependent on a predefined basket of commodities, the GDP price deflator is a more comprehensive inflation measure than the Consumer Price Index (CPI).
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An accountant with ____ has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.
An accountant with technical skills has the ability to create a budget, compare the budget to the actual income statement, and determine unnecessary expenses.
Technical skills are the particular knowledge and competence required in real-world circumstances to complete certain jobs and use specific equipment and programs. From information technology and corporate administration to health care and education, diverse technical abilities are necessary for almost every sector and industry.
Sometimes referred to as "soft talents," human skills comprise our ability to relate to one another and include characteristics such as empathy, compassion, and genuineness. People with great interpersonal skills can build stronger bonds with coworkers and customers. This, in turn, provides a solid foundation for great workplace performance in terms of innovation, adaptable thinking, teamwork, and other areas.
Conceptual skills are mental abilities that allow you to absorb complex ideas and solve challenging situations. These abilities are valuable because they enable people to solve a wide range of problems through careful thought and abstract reasoning.
Motivational abilities are activities or tactics that induce a desired behavior or response in a stakeholder.
Interpersonal skills, often known as people skills, soft skills, or emotional intelligence, are concerned with how you connect and communicate with others.
Hence, technical skills is the answer.
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___ are held by a seller and are promises of payment from customers to the seller
accounts receivables are held by a seller and are promises of payment from customers to the seller.
In general, receivables are a number of loans that occur due to the sale of goods or services on credit, or a number of loans from one person to another that can be collected within a certain period of time. In a broad sense, receivables are claims against other parties in the form of money, goods or services sold on credit.
Receivables generally arise as a result of the sale of goods and services of the company, where payment by the party concerned will only be made after the date of the sale and purchase transaction. Because receivables are very important company or business assets, it is important to carry out reasonable procedures and ways that are quite safe and comfortable with debtors for the welfare of the company.
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find out what has happened to UK Industry over the past 10 year
and why is this?
Interdependence among individuals and interdependence among nations are both based on the gains from trade. True or false?.
Interdependence among individuals and interdependence among nations are both based on the gains from trade.
The statement is True.
What do you mean by Gains from trade?
Just as the two traders in the same country enter into exchange for the objective of making some gain, in the same way two countries get engaged into transactions for deriving some gain. The economists have viewed the gains from trade from the different perspectives. The classical theorists believed that gains from trade resulted from increased production and specialization.
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If germany decided to produce skirts, what is germany's opportunity cost of producing skirts?
If Germany chooses to manufacture skirts, the opportunity cost to Germany is
OC= What you sacrifice/ what you gain
0.5 sweater
Opportunity costs are the potential gains that a person, investor, or company forgoes by selecting one option over another. Opportunity costs are by nature invisible, thus it is simple to overlook them. Better choices can be made when a firm or individual is aware of the opportunities that might be lost by selecting one investment over another. Opportunity cost is a wholly internal expense that is only considered from a strategic standpoint; it is not accounted for in accounting profit and is not reported to external parties. Opportunity costs include things like choosing to build a new manufacturing facility in Los Angeles rather than Mexico City, forgoing an equipment upgrade for the business, or choosing the most expensive product packaging choice over less expensive ones.
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Reference the marketing campaign critical path what is the flow time to create a new marketing campaign?
Planning all of the tasks involved in the development process can be done using a Critical Path Analysis as a calendar. Additionally, it directs you directly to implementation. This enables you to comprehend the crucial deadlines needed to deliver the project.
The following six steps are necessary to create a successful marketing campaign:
Determine Your Goal and Budget in Step 1.Step 2: Determine Your Target Market.Create Your Message in Step 3.Create your media strategy in step 4.Implement Your Marketing Campaign in Step 5.Measure and analyze your results in step 6.This project plan for building a house is a condensed illustration of critical path project management. The Work Breakdown Structure (WBS) contains a list of all the project's tasks, together with information about how they are related to one another and how long they will take to complete.
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If you wanted to purchase the right to sell 2,400 shares of target stock in march 2019 at a strike price of $55 per share, how much would this cost you?
If you wanted to purchase the right to sell 2,400 shares of Target stock in march 2019 at a strike price of $55 per share, it would cost $1,728.
Target Corporation (operating as Target and stylized in lowercase since 2018) is an American department store chain with headquarters in Minneapolis, Minnesota. It is the seventh-largest retailer in the United States and a component of the S&P 500 Index. Target was founded as a discount division of the Dayton department store in Minneapolis in 1962. It began to expand its doors.
Nationwide in the 1980s (as part of the Dayton-Hudson Corporation) and introduced new store formats under the Target brand in the 1990s. industry. The parent company was renamed Target Corporation in 2000 and spun off the last department store chain in 2004. It suffered a major and public security breach of customer credit card data.
Its long-standing subsidiary and subsidiary Target Canada failed in the early 2010s but has seen resurgent success as it expands into urban markets in the United States.
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The sum of php26,000 was deposited in a fund earning interest at 8 nnum compounded quarterly. what is the principal at the end of 3 years?
The amount of funds at the end of 3 years is given by the formula:
F = P(1+R) ^n
⇒ F = 26000 x (1 + 0.08) ³
⇒ F = [26000 x 0.08³] + 26000
⇒ F = 13.312 + 26000 = 26,013.312
What are Funds?
A fund is a collection of money set aside for a certain objective. A fund can be created for a variety of objectives, such as the construction of a new civic center by the municipal government, the awarding of scholarships at a college, or the payment of customer claims by an insurance company.
Funds are used by people, companies, and governments to save money. To cover unforeseen costs, people may create an emergency fund, often known as a rainy-day fund, or a trust fund to save money for a particular person. Money can be invested by both individual and institutional investors in various funds to make money.
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You want to review task dependencies in your schedule before you present it to management. which project feature is most helpful for tracking dependencies associated with a specific task?
Gantt charts are useful for planning and scheduling projects. they assist you assess how long a project should take.
It determine the resources needed, and plan according the order during which you'll complete tasks. They're also helpful for managing the dependencies between tasks.
What is a Gantt chart used for?
Gantt charts aids teams to plan work be before dead lines and properly allocate resources. Projects planners also helpful in ` Gantt charts to take care of a bird's eye view of projects. They depict, among other things, the relation between the start and end dates of tasks, milestones, and dependent tasks.
How do I view task dependencies in MS project?
Choose Project > Links Between Projects. View external predecessor tasks or successor tasks: to work with a list of tasks that are associated to external predecessor tasks, select the External Predecessors tab. to work with a list of tasks that are linked to external successor tasks, select the External Successors tab.
How does one show dependencies in a project plan?
In order to perform the task dependencies you need to insert the Predecessors Column by clicking to the Format menu – Insert Column, select the Predecessors field from the “Field Name” box then click OK in order assured for the changes to take effect.
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The fastest growing plant on record is the hesperoyucca whipplei. suppose a plant of this type grows 1.5 m in 14 days. what is its growth rate in micrometers per second?
The growth rate of the plant will be 1.24 μm/s.
The growth rate of a plant is the ratio of the increase in length to the total time required to attain that length. It signifies that it is equivalent to the growth in plant size per unit of time. Therefore, the growth rate can be calculated by the following formula:
[tex]Growth Rate =\frac{Lenght}{Time}[/tex]
We are given the measurement of a plant that, in the period of 14 days, reaches a length of 1.5 meters. The required growth rate may be calculated by translating different units to micrometers and seconds, then dividing the length by the time.
Conversion of Days into Seconds:1 Day ⇒ 24 hours
1 hour ⇒ 60 minutes
1 minute ⇒ 60 seconds
∴ 1 Day = 24 × 60 ×60
Thus, 14 days = 14 × 24 × 60 ×60 s
14 Days = 1209600s
Conversion of Meters in Micrometers1m ⇒ 10⁶ μm.
1.5m = 1.5 × 10⁶μm.
Now,
[tex]Growth Rate = \frac{1.5\times10^{6} }{1209600}[/tex]
[tex]Growth Rate = 1.24[/tex] μm/s
Thus, the growth rate of the plant will be 1.24 μm/s.
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How should managers prioritize stakeholder concerns in the final step of stakeholder impact analysis?
The last stage of stakeholder impact analysis involves managers prioritizing stakeholder concerns. by taking the strength, veracity, and urgency of stakeholder claims into account.
As stated in the first use of the term in a 1963 internal document at the Stanford Research Institute, a stakeholder in a corporation is a member of "groups without whose support the organization would cease to exist." Later, in the 1980s, R. Edward Freeman expanded and promoted the notion.
Since then, it has received widespread recognition in business theory and practice, particularly in relation to corporate governance, strategic management, company purpose, and corporate social responsibility (CSR). The classification of stakeholders used to define corporate commitments has come under fire for generating a false choice between the "shareholder model" and the "stakeholders model" or a false analogy of the obligations towards shareholders and other interested persons.
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The total cost of direct materials, direct labor, and factory overhead transferred from the work-in-process inventory account to the finished goods inventory account during an accounting period is:___________
The total cost of direct materials, direct labor, and factory overhead transferred from the work-in-process inventory account to the finished goods inventory account during an accounting period is option(d)i.e, Cost of goods manufactured.
The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities.
The cost of goods manufactured is the sum of the expenses of direct material, direct labor, and factory overhead when applied to work in progress and finished goods. The whole cost of production typically includes work in progress and partially finished goods. The cost of goods manufactured is calculated when the work in progress is corrected and the goods are transferred to the finished inventory.
To determine whether the cost of producing a good is high or low, or if the cost of the finished product is high or cheap, the cost of products manufactured is calculated. In order to calculate the cost of goods manufactured, all direct costs, such as direct material, direct labor, and factory overhead, are added together and subtracted from the price of finished goods.
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The complete question is:
The total cost of direct materials, direct labor, and factory overhead transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account during an accounting period is:
a. Normal cost of goods sold.
b. Adjusted cost of goods sold.
c. Total manufacturing cost.
d. Cost of goods manufactured.
e. Actual cost of goods sold.
A liability for unpaid wages that are due to an employee for work performed is an example of:_________
Liability for unpaid wages that are due to an employee for work performed is an example of overtime.
“Over time is an example of liability for unpaid wages”. Overtime refers to an hour of work by an employee according to the schedule of working hours.
For example, if an employee is performing a duty 9 hours a day with extra 3 hours performed over time, these are the liability of unpaid wages. Overtime is the amount of time beyond normal working days.
Employees work overtime hours for family support and financial issues. Sometimes Boss offered overtime to employees to minimize the problem in the organization. Unpaid wages are earnings by employees, and unpaid wages are money owed to hourly employees for their duties per shift. To account for unpaid wages the number of hours worked by employees after the last pay period.
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One of the first businesses to reflect the advantages and problems associated with the corporate structure was the ________ industry. group of answer choices
One of the first industries to reflect both the benefits and drawbacks of the corporate structure was the railroad sector.
Various departments that support the general mission and objectives of the organization make up the conventional corporate structure. The following departments are frequently found: IT, Marketing, Finance, Operations Management, and Finance. The key departments of a publicly traded corporation are represented by these five divisions, but independent businesses may have smaller departments.
A CEO and a board of directors are common organizational structures for firms. The board is typically made up of the directors of each department, with possibly one or more non-executive directors added. Presidents, vice presidents, and CFOs are additional positions in companies. As businesses span from a single firm to a multi-corporation conglomerate, there is a wide variation of corporate formations.
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Why do custom-built, homegrown, and/or investigational technologies pose the greatest risk to research participants?
mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus mega sus ballz ballzballzballzballzballzballzballzballzballzballzballzballzballzballzballzballzballzballzballzballz
Physical risks include discomfort, pain, injury, illness, or disease caused by the research methods and procedures. Physical stimuli such as noise, shock, heat, cold, electric gravitational or gravitational fields, and so on can all pose a physical risk.
What are research risks?Greater-than-minimal risk determinations are derived from the definition of minimal risk. Risk in research can refer to the chances that individuals are willing to take in order to achieve a specific goal; or Situational hazards.
A quantitative risk analysis is founded on evidence. It assigns numerical values to risks based on quantifiable data such as costs, logistics, completion time, and staff sick days, among other factors. After a qualitative risk analysis, you'll usually conduct one to further assess the highest priority risks.
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Assume that sugar is initially traded freely in the us at the world price of $20 and at this world price the us imports 5,000 units of sugar. Then assume that the us enacts a quota of 2,000 units of imported sugar that raises the domestic price of sugar to $45. What is the most amount of revenue that the government can generate if it combines this quota with a licensing fee?.
The most amount of revenue that the government can generate if it combines this quota with a licensing fee is $50,000.
Quota: A quota is the set limit on how much of something is legally permitted.
Licensing Fee: A licensing fee is a money given to another organization in exchange for a specific right.
Example of Licensing Fee:
For instance, people or businesses may have to pay licensing fees to a government body in order to practice their profession or conduct a specific type of business.
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The first mall in mumbai, india was successful. Builders proceeded to construct three more right away. However, they have more than 50% vacancies because they lack customers. The builders failed to properly account for which challenge of operating in developing countries?.
The builders failed to properly account for potential consumers' lack of wealth challenge in developing countries.
A builder is in charge of managing the entire building process. They manage, organize, and conduct residential and commercial building construction, excavation, demolition, and remodeling projects.
According to the UN, a developing country is one with a moderate to low Human Development Index, a weak industrial base, and a generally low standard of living (HDI). This index provides a global comparison of poverty, illiteracy, education, life expectancy, and other aspects.
Capital gains benefits, private pension assets, inheritance, and the differential in tax rates between income and wealth are the primary variables affecting how wealth is distributed.
According to the wealth effect, a behavioral economic concept, people spend more money as the value of their assets increases. Consumers are supposed to feel more financially secure and wealthy as the value of their houses or investment portfolios rises. Therefore, the lack of wealth challenge is usually faced in developing countries.
The first mall in Mumbai, India was successful. Builders proceeded to construct three more right
away. However, they have more than 50% vacancies because they lack customers. The builders
failed to properly account for which challenge of operating in developing countries?
(A) Underdeveloped infrastructure
(B) Stagnant political policies
(C) Firms have to invest heavily in distribution systems
(D) Firms have to train consumers on how to use their products
(E) Potential consumers' lack of wealth
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The money left over from sales after all the costs of operating a business have been paid is called.
The money left over from sales after all the costs of operating a business have been paid is called Profit.
The money in a business keeps after deducting all costs is known as profit. The main objective of any business, whether it be a small stand or a publicly traded multinational corporation, is to make money. As a result, a company’s success is determined by its profitability in all of its forms. The three main types of profit are gross profit, operating profit, and net profit, all of which can be found on the income statement.
Supply and demand are important ideas in both business and economics in and of themselves. But when you combine the two as supply and demand , you have a widely accepted economic model that explains how prices are determined in a market.
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What is the next logical step to ensure the proper application of risk management methodology within the two-factor implementation project?
Chance management is the system of assessing risk, taking steps to reduce hazard to an appropriate stage, and maintaining that level of risk. risk management.
The risk management is the system of identifying areas of danger that might negatively impact the achievement of the venture and proactively dealing with those areas. chance is analyzed throughout the initial levels of the assignment to put the inspiration for achievement and on an ongoing basis during the undertaking.
Generally, a very good risk management plan which always includes 5 components. those are definitions, presumptions, and systems detailing hazard breakdown, effect, fee, and schedule.
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Jean power wants to try and locate passwords from company xyz. he waits until nightfall and climbs into the paper recycling dumpster behind xyz searching for information xhat is jean doing ?
Jean power wants to try and locate passwords from company xyz. He waits until nightfall and climbs into the paper recycling dumpster behind xyz searching for information so, he is doing Dumpster diving.
Dumpster diving means searching through other people's garbage for hidden treasure. Dumpster diving is a method used in the field of information technology (IT) to extract data from discarded things that could be used to launch an attack or gain access to a computer network.
Dumpster diving isn't just looking through trash for things like sticky-noted passwords or access credentials that are obviously valuable. A hacker using social engineering tactics may utilize seemingly innocent information, such a phone book, calendar, or organizational chart, to help them access the network.
Experts advise organizations to have a disposal policy that requires all paper — including printouts — to be shred in a cross-cut shredder before being recycled, all storage media to be deleted, and all personnel to be informed about the danger of untracked garbage.
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What serves a specific community with common business models, security requirements, and compliance considerations?
Community Cloud serves a specific community with common business models, security requirements, and compliance considerations.
Community Cloud: A shared cloud computing service environment for a small number of businesses or employees is referred to as community cloud computing (such as banks or heads of trading firms). Users can connect to the same environment while having their sessions logically divided on a shared cloud.
Due to this, businesses no longer need separate servers to accomplish the same requirements.
Community Cloud serves a specific community with common business models, security requirements, and compliance considerations.
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What+is+the+present+value+of+a+12-year,+$625+annuity+due,+given+a+discount+rate+of+7.5%?
The present value of the annuity is $5197.14 approx.
Present value of annuity due=
[tex]\frac{(1+rate)*Annuity[1-(1+interest rate)^{-time period} }{rate}[/tex]
=(1.075)*625[1-(1.075)[tex]^{12}[/tex]]/0.075
=(1.075)*625*7.735278275
which is equal to
=$5197.14(Approx).
The present value of an annuity is the present value of future annuity payments at a given rate of return or discount rate. The higher the discount rate, the lower the present value of the annuity.
The formula for determining the present value of an annuity is: PV = individual annuity payments multiplied by P = PMT * [1 - [(1 / 1+r)[tex]^{n}[/tex] / r] equals: P = present value of annuity flows. PMT = dollar amount of each payment. r = discount or interest rate.
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