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Iamchill5998
29.08.2019 •
Business
Kristi collmer and ray bergeron each received signing bonuses from their accounting firms today. kristi received $5,000 immediately. ray will receive $1,500 at the end of each year for the next 4 years. assuming a 10% interest rate, who got the better deal and by how much (in today’s dollars)?
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Ответ:
Kriste receive a better deal by $242.2
Explanation:
First, we will compare the present value for a 4-years annuity of $1,500 at 10% discount rate. So we can compare both values at the same date.
C1500
time4 years
rate10% --> 0.1
We plug the values into the formula and solve
PV$4,754.80
This values is the equivalent of Ray deal. At the discount rate of 10% is the same receive 4,754.8 today or 1,500 over a 3 year period.
Kristi receive 5,000 today while Ray receive the equivalent of 4,757.8 today
We compare each one to determinate the difference:
Kriste 5,000 - Ray 4,757.8 = 242.2
Therefore, Kriste receive a better deal by $242.2
Ответ:
Is the branch of knowledge concerned with the production, consumption and transfer of wealth