culturedxnat
27.02.2020 •
Business
Your great aunt left you an inheritance in the form of a trust. The trust agreement states that you are to receive $2,500 on the first day of each year, starting immediately and continuing for 20 years. What is the value of this inheritance today if the applicable discount rate is 4.75 percent
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Ответ:
PV$33,338.44
Explanation:
We have to solve for the present value of an annuity-due (installment at hte beginning) of $2,500 during 20 year discounted at 4.75%
C2,500.00
time 20
rate0.0475
PV$33,338.4395
Ответ:
The correct answer is option A.
Explanation:
Adam spent $10,000 on new equipment for his small business, "Adam's Fitness Studio".
He needs an additional $12,000 per year to keep his studio open.
Here, the $10,000 spent on equipment is fixed costs. the additional amount of money required is the variable costs necessary to run business.
Fixed costs are the cost that remains constant for a time period irrespective of the level of output. The variable cost, on the other hand, varies with the level of output.