Sam expects to receive $2,000 at the end of each year for 3 years. The annuity has an interest rate of 12%. The present value of this annuity at Time Zero, the inception of the annuity (rounded to the nearest dollar) is

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Answer 1

The inception of annuity is $4850

An insurance contract known as a annuity is one that financial institutions sell with the goal of paying out invested money as a fixed income stream in the future.

Given Initial Cash flow is $2000

The rate of interest is 12%

We need to calculate the present value of the growing annuity that is  

The inception of the annuity

Present value of the growing annuity can be calculated by

PV = C/r [1-(1/1+r)^n]

Where , C = $2000

r = 12%

n = 3

Substituting the values in the formula

PV = 2000/0.12[1-(1/1+0.12)^3

PV = 2000/0.12 (1-0.709)

PV = 2000/0.12 (0.291)

PV = 1,666.66 (0.291)

PV = $4850

Hence the present value of the growing annuity is $4850

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Related Questions

What does the information demonstrate about alex’s investments?

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The information demonstrates about that Alex's investments would most likely would have benefited by diversifying.

What is a diversification?

This refers to the act of adopting a growth strategy that involves entering into a new industry while also creating a new product for that new market.

Hence, based on the information given, it is deduced that Alex's investments would most likely would have benefited by diversifying.

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Which team dysfunction does safe help address with the help of business owners

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The team dysfunction that is addressed by SAFe with the help of business owners is the lack of accountability.

What is the loss of accountability?

This can be defined as the scenario that occurs where people fail to take responsibilities for their lack of actions.

This may impede the growth of a team. Therefore it is very necessary that this is addressed to avoid issues.

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Because the market sector features a few large and dominant competitors, the Big Tech marketplace best illustrates a condition where conditions of ___________ prevail:

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Because the market sector features a few large and dominant competitors, the Big Tech marketplace best illustrates a condition where conditions of "Oligopoly" prevail.

What is an Oligopoly?

A market structure known as an oligopoly occurs when two or more companies hold a large amount of market power. They have the power to control supply and prices when  acting as a group. When the top 4 companies dominate 50% of a market, it is generally referred to as an oligopoly.

Some key features of Oligopoly are-

Few firms with large market share Oligopolistic firms maintain their position in the market by a number of  high barriers to entry.Interdependence - An oligopolistic business will make decisions depending on how they anticipate rivals will respond.Each firm has little market power on its own - each firm has little market power, because other firms are quick to take advantage.Higher prices than in perfect competition - due to their combined market dominance, oligopolies frequently maintain higher pricing in order to generate greater profits.More efficient - Oligopolistic businesses profit from high market shares. They also profit from economies of scale, which allows for cheaper production.

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A customer has a problem that needs to be fixed immediately. To properly fix the problem you need to gather some information from the customer, but the customer is angry and impatient. What would you be most likely to do

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In the given situation to fix the problem of the customer, their can be an adequate discussion about the problem and also the solution can be found from the available data.

Even it requires to be extremely patient and kind to handle such kind of customer. Ensure the customer about the resolving of their problem as soon as possible.

Even letting them know about the company that how much they value their customers and also always in the position of satisfying their needs and requirements.

Then collect the required data for solving the query of the customers when needful.

Thus, the problem can be solved patiently.

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Suppose the government grants a subsidy to the producers for every car produced. The change in the amount sold will be greater when:


there is a greater number of close substitutes available to the consumer


the price elasticity of demand is inelastic.


the price elasticity of demand for cars is greater


the amount of the subsidy is smaller

Answers

The change in the amount sold will be greater when the price elasticity of demand is greater than 1. (option 3).

What is price elasticity of demand?

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

Demand is elastic when the coefficient of demand is greater than one. This means that for a small change in price, the quantity demanded would be greater.

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Whatever strategic approach is adopted by a company to deliver value, it nearly always requires a. that management undertake formal planning sessions with functional departments to ensure productivity improvement. b. the identification of strengths and weaknesses within the company. c. matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. d. performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. e. constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium.

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The strategic approach adopted by a company to deliver value, it nearly always requires performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match.

What is value chain?

A value chain analysis is the process of knowing the main and support activities that add value to a product and seek ways to reduce costs or increase differentiation.

Hence, the strategic approach adopted by a company to deliver value, it nearly always requires performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match.

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Which best explains why international trade agreements are beneficial for developing economies?.

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They can help countries to grow quickly.

Marketing ethics can be defined as: Group of answer choices a broad concept that relates to a firm's obligation to maximize its positive impact on society. that part of a corporate culture that relates to a firm's expectations about appropriate conduct. principles and standards that define acceptable marketing conduct. activities involving extra steps to increase the firm's overall positive impact on society, the local community, and the environment. the economic responsibility of making a profit.

Answers

Marketing ethics can be defined principles and standards that define acceptable marketing conduct.

What is Marketing ethics?

Marketing ethics can be regarded as the principle that guides the process of marketing so as to be able to achieve the goal of increase in the profit of the organization.

Therefore, Marketing ethics can be defined principles and standards that define acceptable marketing conduct.

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An increase in a firm's total asset turnover will:

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An increase in a firm's total asset turnover means that the company is more efficient at using its assets.

What is Asset turnover ratio?

Asset turnover ratio can be regarded as the ration that is found which describes  the value of a company's sales and value of its assets.

It help the company to analyze the efficiency of the company in deploying its assets.

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if an economy is experiencing a cyclical downturn and output does not return to the secular growth trend, the economy is said to be experiencing ______.

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If an economy is experiencing a cyclical downturn and output does not return to the secular growth trend, the economy is said to be experiencing structural stagnation.

What is structural stagnation?

This stagnation is attached to economies that are matured and it occurs when growth rate do the economy decreases rather than increasing.

The population may be decreasing and yet the country is experiencing stagnation.

Therefore, If an economy is experiencing a cyclical downturn and output does not return to the secular growth trend, the economy is said to be experiencing structural stagnation.

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Categories for housing structures with different attributes include:

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Categories for housing structures with different attributes includemultiple-unit dwelling.

What is housing structures?

Residential structure can be regarded as the  structure that is been  used, which is very suitable for dwelling which could be a single- or multi-family home.

This could be categorized as :

house trailermotor home,mobile home condominium

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The costs of producing, distributing and promoting the product will all influence the product's:

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The costs of producing, distributing and promoting the product will all influence the product's PRICE

What are products?

Products are goods and services offered by an organization. These products can be tangible or intangible. Most intangible products are in form of ideas.

The costs of producing, distributing and promoting the product will all influence the product's price. The higher the price, the lower the level of demand and vice versa.

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The failure to properly record an adjusting entry to accrue an expense will result in an:

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The failure to properly record an adjusting entry to accrue an expense will result in an understatement of expenses and an understatement of liabilities. This is further explained below.

What are expenses?

Generally, expenses are simply defined as what it would take or what it would cost to do anything.

In conclusion, Incorrectly recording an accrual adjustment entry will result in a misstatement of both costs and liabilities.

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When division of labor is extensive, a. employees are often highly challenged. b. employees specialize in many tasks. c. jobs tend to be large. d. employees specialize in a single task. e. employees are often inefficient.

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When there is an extensive labor division than employees specialize in a single task. Thus the correct option is (D).

What is Division of labor?

The concept of the Division of the labor is included in the 14 principles of Henry Fayol which refers to the breakdown of the work of the labor which is to be performed by the specific worker.

The Division of labor leads to the specialization of the specific task. In other words it can be said that the labor or worker becomes the expert in his particular field of job.

Therefore the correct option is (D).

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Answer it ....the question is in the pic​

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Answer:

business activities in India

1) Manufacturing -

When product is manufacture or made to that it cn be sold in Market 2) storage -

After the product is ready it required some space to store until it would sold in the market

3) transporting

as per the demand it will transport from one place to another

4) financing -

It requires some money to meet the expense before solding a product

5) marketingto let people know about the product so that more products will be sold

There are other activities also such as managing, accounting etc

When the same payer issues the primary, secondary, or supplemental policies, the correct procedure for submitting the claim would be to submit __________. a. primary first, followed by secondary and supplemental b. three separate claims c. one claim for all policies d. a separate claim for each policy

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When the same payer issues the primary, secondary, or supplemental policies, the correct procedure for submitting the claim would be to submit: c. one claim for all policies.

What is insurance claim?

An insurance claim can be defined  as the way in which a policyholder request that the insurance company under which the policyholder is covered  pay for the damage or damages the policyholder incurred.

In  a situation where the same payer issues both primary and secondary polices they have to submit one claim for all the policies.

Therefore the correct option is C.

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The field of accounting that focuses on providing information for external decision makers is:.

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The field of accounting that focuses on providing information for external decision makers is Managerial accounting. This is further explained below.

What is Managerial Accounting?

Generally, Information for external decision-makers is the primary emphasis of managerial accounting. For investment decisions, stockholders rely heavily on management accounting data.

In conclusion, Managerial accounting is a branch of accounting that specializes in the dissemination of economic data to external decision-makers.

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1. describe a buying situation in which you were successfully cross-sold and a situation in which you were ""traded up.""

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To Cross-sold means a sales tactic used to get a customer to spend more by purchasing a product that's related to what had been bought already. Read below about trade up.

What does it mean to be traded up?

To be traded up means to have added a higher-priced, higher-quality version of a product to the range, generally to increase sales of the lower-priced model through consumer association of its image with the more prestigious model.

Therefore, the correct answer is as given above.

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In the absence of taxes, the value of a firm is the same with debt financing as it is with equity financing because Blank______. Multiple select question. equity financing is actually better than debt financing debt financing is actually better than equity financing MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxes the asset to be financed is the same

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MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxesthe asset to be financed is the sameWhat is debt financing?

Debt financing is the process through which a business sells debt instruments to retail and/or institutional investors in order to raise funds for working capital or capital expenditures. The people or organizations receiving the funds become creditors and are given the assurance that the principal and interest on the loan will be paid back. The other method of raising money in the debt markets is by issuing stock in a public offering; this process is known as equity financing.

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What country borders the caspian sea, the persian gulf, and the gulf of oman?.

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Iran, is the country that borders the Caspian sea, the Persian gulf, and the gulf of Oman.

Which countries lie along the Caspian sea, the Persian gulf and the gulf of Oman?

Iran country lies in the Middle-East of the Iraq and Pakistan, that borders the Caspian sea, the Persian gulf, and the gulf of Oman.

The inland sea is connected to the Gulf of Oman from the East and the countries that lie along the Persian Gulf and the Gulf of Oman are Oman, Iraq, Kuwait, Saudi Arabia, etc.

Strait of Hormuz connects the the Persian Gulf to the Arabian Sea.

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Theoretically high taxes slow the economy because

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High taxes in theory would slow the economy because they redirect money from the private sector to the government and reduce consumption.

How do high taxes slow the economy?

The economy grows when the private sector produces more and grows. High taxes will take money from this sector which would leave less cash for growth investment.

High taxes also reduce the amount that people have for consumption which would reduce Aggregate demand.

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5. how do you think magellan's discoveries affected the market demand curve for
spices? what do you think is the main reseason for any change in the market demand
curve for cinnamon during the past 500 years?

Answers

Magellan's discoveries affected the market demand curve for spices by shifting it to the right which meant demand increased.

A change in the market curve for cinnamon would be due to an increase in demand.

How did Magellan's discovery affect the market for spices?

Thanks to Magellan, Europeans were able to get more spices from India and SE Asia without having to go through Arabic lands.

This increase the supply of spices which led to the prices of spices falling. As prices fell, demand then rose to benefit from the lower prices.

This increase in supply was why the market demand curve for cinnamon changed.

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Which tool can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs?.

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The tool that can be used to easily calculate the change in profit resulting from a change in sales price, sales volume, variable costs, or fixed costs is The CVP analysis. This is further explained below.

What is CVP analysis?

Generally, Changes in both variable and fixed expenses may have a significant impact on a company's bottom line, and a cost-volume-profit (CVP) analysis can help you understand the relationship between the two.

In conclusion, The CVP analysis is a tool that may be used to quickly determine the change in profit brought on by a change in sales price, sales volume, variable costs, or fixed costs.

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Archaeologists found an ancient inca tomb under an ordinary home in which world capital?.

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An Ancient Inca tomb was founded by the archaeologists in the capital of Peru under an ordinary home.

Who were the archaeologists?

Archaeologists are the individuals who study the artifacts of historical eras and also excavate the sites that existed in the ancient era.

Archaeologists have found the tomb of the Inca civilization which was wrapped in cloth along with burials of ceramics and fine jewels of that time. It was a structure built over the time span of 500 years back. The tomb was one of the most prominent architects of the Inca civilization.

Therefore, the archaeologists found the tomb of the Inca Empire in the capital of Peru.

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A group of investors wants to open up a jewelry store in a new shopping center. The investors are trying to decide whether to stock the store with inexpensive jewelry, medium-priced jewelry, or expensive jewelry. The probability of their choice depends upon the economic conditions: prosperity or recession. How many decision alternatives are presented in this situation?

Answers

Based on the situation the group of investors face the number of alternatives described is 3 alternatives.

Which alternatives do the investors have?

The investors have the choice of stocking either inexpensive jewelry, medium-priced pieces, or expensive jewelry.

These are three choices in total that they have to pick from in a mutually exclusive scenario.

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The interaction of world supply and demand determines the equilibrium ______.

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The interaction of world supply and demand determines the equilibrium world price.

What is Supply?

Supply can be seen as the number of resources, goods, or products a producer or manufacturer is willing and able to provide to an individual or marketplace.

The relationship between the world supply and demand determines the level of equilibrium of the world price for that particular product.

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imagine that a new study reveals that onion consumption is correlated with cancer. this shift in popularity will likely cause the new demand curve to run through which of the following points?

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If there is a study that shows that onion causes cancer it would cause the new demand curve to go lower on its points.

How is the demand for onion going to be affected.

Given that it has been established that onion consumption leads to cancer. There would be a great reduction in the number of sales for onion.

People would want to stop consuming the product so that they would nit be affected by the disease.

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which of the following is not correct with respect to using bcc for recipients of a message?

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The option that is not correct with respect to using bcc for recipients of a message is this:

It should be the default for all correspondence.What is the Blind Carbon Copy?

Blind carbon copy is a way of preventing the recipients of a bulk message from viewing the other addressees. While it is a very good privacy option, it is not expected to be the default for all correspondence.

Sometimes, the addressees might have to view their counterparts so BCC is enabled in such cases.

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The costs incurred by the firm when new issues of stocks or bonds are sold are called:

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The costs incurred by the firm when new issues of stocks or bonds are sold are called: Flotation costs.

What are flotation costs?

When publicly trade companies issues new securities, these are the costs that are incurred.

These would make the new equity that this firm has to be more expensive than it formerly was.

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company leaders expect advertising agencies to produce tangible outcomes with an increasing emphasis on ______.

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Advertising is an important expense for the organizations, company leaders are now expecting to produce tangible outcomes of advertisement with an increased emphasis on accountability and measurable results.

Measurable results are important for the expenditure to analyze and to plan further expense to be more effective

What is an advertisement?

An advertisement is an expense that is to inform consumers about the product and its benefits. The amount spent on advertisement is generally expensed out in the statement of profit or loss.

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