You are choosing between two plans at a discount warehouse. Plan A offers an annual membership fee of $130 and you pay 20% of the manufacturer's recommended list price. Plan B offers an annual membership fee of $40 and you pay 80% of the manufacturer's recommended list price. At what price are the two plans equivalent ?
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- Housing PricesConsider a 1,500 square foot house, which rents monthly for $0.75 per square foot. Prevailing interest ratesare 5 percent, and remain constant(a) Assuming the rent is constant, and that you cannot resell the home, what is the most you’d be willingto pay for it?(b) Now suppose you could sell the house after 4 years, what is the most you’d be willing to pay for it?(c) Suppose that the house requires a constant annual maintenance cost of $500 to last forever, how muchare you willing to pay for it today?(d) If rent is not constant, but grows at a rate of 0.5 percent per year, how much would you pay for thehouse? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sureCalculate the present value on January 1, 20X0 of a perpetuity paying $1,000 at the end of each month starting from January 20XÒ. The monthly discount rate is 0.8%.You inherit $10K when you are 20. What is this worth when you are ready to retire at 65? Assume that the money can be invested at 7%, which is your interest rate for the time value of money. Compare this with an insurance policy that could be purchased with a lump-sum payment of $10K. That policy would pay you $100K at age 65 and your survivors $100K if you die sooner. How much value per year must you put on protecting your survivors for these to be equivalent?
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $enter your response here. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $enter your response here. (Round your response to the neareast two decimal place)You have just won a lottery prize of $2,500,000 collectible in 10 yearly installments of $250,000 starting today. The total present worth of the prize is $1,663,173. Suppose that you have a large mortgage you want to pay off now. You propose an alternative but equivalent payment scheme. You would like $290,000 today and the balance of the prize in eight years when you intend to purchase a large piece of waterfront property. How much will the payment be in eight years? Assume that annual interest is 10 percent compounded monthlyAngela puts $1,000 in a savings account that pays 3 percent per year. What is the future value of her money one year from now? a. $970. b. $1,000. c. $1,003. d. $1,030.
- An electricity company has the opportunity to use natural gas to generate electricity at a cost of $30 per unit in 2 years. The current market rate of interest is 4 percent. The present value of this cost is about Multiple Choice $28. $29. $32.This year is 2023. You have saved $20,000 in your savings account to buy a new home. In addition, you also plan to withdraw the maximum from your Registered Retirement Savings Account (RRSP) under the Home Buyer's Plan (HBP). What would be the minimum conventional mortgage you could assume? Select one: a. $220,000 b. $140,000 c. $175,000 d. $225,000▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $.(Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $.(Round your response to the neareast two decimal place)Calculate the expected present value of an annuity payable half-yearly in arrears for a maximum of 30 years to a life now aged 50. The annuity is $10,000 per annum in the first 10 years and will increase to $15,000 per annum afterwards. There is a guarantee for the first 5 years of payments. The interest rate is 6% per annum and the mortality basis is AM92 ultimate. Give your answer to the nearest cent.A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever." Calculate the present value of your payments to the bank if the interest rate is 6%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is 6%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.