If the present value of $500 expected to be received three
years from today is $200, what is the discount rate (rounded to one
decimal point)? Please show your work, or input for the
calculator.

Answers

Answer 1

The discount rate (rounded to one decimal point) is approximately 0.4 or 40%.

To calculate the discount rate, we can use the formula for present value:

Present Value = Future Value / (1 + Discount Rate)^n

where Future Value is the amount expected to be received in the future, Discount Rate is the rate at which future cash flows are discounted, and n is the number of periods.

In this case, we have:

Present Value = $200

Future Value = $500

n = 3 (years)

Substituting these values into the formula, we get:

$200 = $500 /[tex](1 + Discount Rate)^3[/tex]

To find the discount rate, we need to isolate it. Rearranging the equation, we have:

[tex](1 + Discount Rate)^3[/tex] = $500 / $200

Simplifying the right side, we get:

[tex](1 + Discount Rate)^3[/tex] = 2.5

To solve for the Discount Rate, we take the cube root of both sides:

1 + Discount Rate = ∛2.5

Subtracting 1 from both sides, we have:

Discount Rate = ∛2.5 - 1

Evaluating this expression,

To calculate the discount rate, we can use the formula for present value:

Present Value = Future Value /[tex](1 + Discount Rate)^n[/tex]

where Future Value is the amount expected to be received in the future, Discount Rate is the rate at which future cash flows are discounted, and n is the number of periods.

In this case, we have:

Present Value = $200

Future Value = $500

n = 3 (years)

Substituting these values into the formula, we get:

$200 = $500 /[tex](1 + Discount Rate)^3[/tex]

To find the discount rate, we need to isolate it. Rearranging the equation, we have:

[tex](1 + Discount Rate)^3[/tex] = $500 / $200

Simplifying the right side, we get:

[tex](1 + Discount Rate)^3[/tex]= 2.5

To solve for the Discount Rate, we take the cube root of both sides

1 + Discount Rate = ∛2.5

Subtracting 1 from both sides, we have:

Discount Rate = ∛2.5 - 1

Evaluating this expression, the discount rate (rounded to one decimal point) is approximately 0.4 or 40%.

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Related Questions

Think of a substantial product you regularly purchase, such as video games or jeans. If supply is high and
demand is low, what happens to the cost? How might that affect someone's income? Likewise, if supply is low
and demand is high, what happens to the product's cost? How might that affect someone's income?

Answers

Answer:

See below

Explanation:

1. When the supply is high, and demand is low, an item's cost will probably come down. High supply with low demand creates a surplus in the market. Seller will offer the lowest prices possible to woe buyers.

When an item's prices go down, buyers will spend less money buying the product. The buyer saves some money, which is equivalent to having more income than before.

2. With a low supply but high demand, prices tend to go up. There will be great competition for the few goods from the many buyers. As a result, suppliers will hike prices and make more profits.

An increase in prices forces buyers to spend more money to buy the same commodities. Their disposable income decrease, which is the same as having a reduced income

What is the difference between Money
Market and Investments?

Answers

Answer:

can udo a pic so i can see

Explanation:

Based on the W-2 provided, Social Security tax withheld for Lily was ______ of wages and Medicare tax withheld was ______ of wages.

a. 1.3%, 5.5%
b. 6.2%, 1.45%
c. 10%, 10%
d. 28%, 39.8%

Thanks for any help I can get! I don't need an explanation as to how you got the answer. ​

Answers

Answer:

b. 6.2%, 1.45%

Explanation:

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

=895.90/ 14,450 x 100

= 0.06193771 x 100

=6.2 %

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

=209.5/ 14,450 x 100

=0.01449827 x 100

=1.45%

The social security tax is the tax amount that is acquired from the earned income to fund the benefits of social security. It is the major part of the salary that carries the benefits for the person who earns it and contributes some part for the benefits of the government.

The correct answer is b. 6.2%, 1.45%

Social security and medicare are calculated as a percentage of the gross pay. For Lily, gross pay is $14,450.

For social security, 895.90 is deducted. As a percentage of her gross pay

895.90 will be.

[tex]=\frac{895.90}{14,450}\times 100= 0.06193771 \times 100=6.2 \%[/tex]

For medicare, 209.5 has been deducted.  As a percentage of her gross pay, 209.5 is

[tex]=\frac{209.5}{14,450} \times 100=0.01449827 \times 100=1.45\%[/tex]

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what is the role of doctors in our society?​

Answers

Their role is to serve the society as others do basically contribution but their actual role is to help others through their medical knowledge.

Which of the following occupations is most responsible for ensuring the quality and safety of the food
supply chain?
O chefs
O farmers
O grocery store owners
O food processors

Answers

I would say farmers because all of they rely on their food producs

Answer: I am pretty sure the answer the answer would be the farmers

Explanation: the food comes form the farmers, including meats, veggies, fruits, well you get the point. And if there is something bad with one of the meat animals, they are in charge of not selling the "bad meat" to any stores or big meat companies

Which of the following should which of the following should be of concern when a company considers expanding into a new International market?
the country's legal system
the country's political stability
the education level of the workforce
all of the above

Answers

I think it might be (all of the above)

Why do you think economists have different belief systems/theories on economics?

Answers

Economists have different belief Systems because Economists also disagree because their methods are not good enough to reveal the whole truth. Economic theory is an attempt to explain and interpret economic data, for example, to determine the causes and effects of economic events.

Answer:The principal disagreement among economists is a matter of economic philosophy. There are two major schools of economic thought: Keynesian economics and free-market, or laissez-faire, economics.

Keynesian economists, named after John Maynard Keynes, who first formulated these ideas into an all-encompassing economic theory in the 1930s, believe that a well-functioning and flourishing economy may be created with a combination of the private sector and government help.

By government help, Keynes meant an active monetary and fiscal policy, which works to control the money supply and adjust Federal Reserve interest rates in accordance with changing economic conditions.

By contrast, the free-market economists advocate a government "hands-off" policy, rejecting the theory that government intervention in the economy is beneficial. Free-market economists—and there are many distinguished advocates of this theory, including Nobel Memorial Prize winner Milton Friedman—prefer to let the marketplace sort out any economic problems. That would mean no government bailouts, no government subsidies of business, no government spending explicitly designed to stimulate the economy, and no other efforts by the government to help what the economists believe is the ability of a free economy to regulate itself.

Explanation:

Virtue ethics places great focus on which of the following

Answers

Answer:

character i think.

Explanation:

WILL GIVE BRAINLIEST
If loans and credit card debt are taking up most of your monthly income, which of the following is the LEAST effective first step in getting your debt under control?
A. Start a side hustle and allocate the money you make towards extra payments for your debt.

B. Take a hard look at your budget and try to cut nonessential items so you have more cash to pay down your debt.

C. Declare bankruptcy, which will eliminate all your debts and allow you to start over with a clean slate.

D. Pay extra money each month to the debt with the highest interest rate, so you'll decrease the total amount you'll spend on debt.

Answers

Answer:

a or c i fliped a coin and got A sounds like the answer rember jesus loves you

Explanation:

Which of the following best describes a stock.

A) An incredibly stable investment that is always a safe investment
B) Is insured by the FDIC
C) Represents a share of ownership of a corporation
D) Only sold in the United States

Answers

Answer: C

Explanation: A stock represents a share of ownership of a corporation. Stocks are bought by people so they can get money. If the company's stock they by it from goes well, they get money as well as interest. The answer is C. Hope this helps!

which of the following should be pracited among all co workers in the workplace
a.bullying
b.discrimination
c.stereotyping
d.tolerance

Answers

Answer:

c

Explanation:

Answer:

D. Tolerance

Explanation:

Because what, you souldnt do any of the others, dude, teachers sometimes

To satisfy demands for withdrawals, banks keep:
A. discount rates.
B. monetary policies.
C. balance sheets.
D. fractional reserves.​

Answers

C. balance sheets

explanation:

Fractional reserve banking increases the money supply in an economy by:
A. preventing depositors from leaving a lot of money in banks.
B. requiring the government to print more money in certain
situations.
C. loaning money that would otherwise be held in a bank.
D. accepting currencies from many different countries to pay off
loans.

Answers

Answer:

C. loaning money that would otherwise be held in a bank.

Explanation:

Fractional reserve banking increases the money supply in an economy by "loaning money that would otherwise be held in a bank."

Fractional reserve banking is known as a system of banking whereby the banks hold a fraction of what customers deposit as reserves. Then the banks use the remaining to give loans and thereby creating and increasing the supply of money. Commercial banks practise this type of banking system. This tells of how commercial banks are affecting the money supply. The bank reserves are usually held as cash in the bank. It can also as balances in the bank's account at their central bank.

Answer:

C. loaning money

Explanation:

just did it on a-p-e-x

After learning about social media ethics, what 5 things would you tell other high school students positive or negative about social media and how it will potentially affect their high school experience and their potential career?

Answers

1. A positive is meeting and learning from new people 2. social media Can be dangerous to mental health 3 Stay in touch with distant people 4. Learn subjects 5. What you say online can bite you on the butt

Should voting be mandatory?

Answers

Answer: Yes

Explanation:

Answer:

no

Explanation:

because no

which of the following is a workplace trend?
A - decreased outsourcing
B - decreased attention to diversity
C- increased use of manual labor
D - increased technology literacy

Answers

Answer:

increased use of manual labor

Explanation:

Advancement in technology has resulted in machines taking over manual jobs.  A few decades ago, manual work was done by human beings exclusively. Industries hired many laborers to assist in many aspects of the business. Today, machines and robots are deployed in different sectors of the economy.

The current trend is the workplace is the use of modern technology. Computers, machines, and robots are gradually replacing people, mostly unskilled and manual laborers.

Which of the following vehicles would have a lower insurance premium?
O A brand new SUV
O A used town car

Answers

Answer:

A used town ca

Explanation:

Because its used and that insures that it works so it makes the insurance go down

The correct answer is option B.

A used town car would have a lower insurance premium.

Insurance premium

An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance.

What is an example of a premium in insurance?

A premium is the price of the insurance you've chosen, charged by your insurance company. A deductible is an amount you have to pay before your insurance company initiates coverage. For example, if your car insurance premium is $800 per year, you must pay your insurer $800 per year to have the insurance.

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if i post by business page will you guys follow it ?

Answers

Answer:

Yassss queeeennnn

Explanation:

jdnskakana

Explanation:

Yes i will definately follow it

Which one of the following businesses would you classify as being in the secondary sector of industry?

A) Oil exploration company
B) Family run farm business
C) Taxi operating business
D) Shoe manufacturer

Answers

Answer:

shoe manufacturer

Explanation:

Helppp please
The fact that a country has less strict labor laws and relaxed environmental regulations are strong reasons for a
company to move production facilities to that country.
True
False

Answers

The answer has to be true

Answer:true

Explanation: I just took the test

Describe the information you will need to provide in order to complete a FAFSA. List at least three of the required documents you must include.

Answers

Answer:

Sample response: To complete a FAFSA, I must first include information to verify my identity. This includes my Social Security number or a driver's license. I must include information about my income or my family's income (if they are still responsible for my care). Finally, I must submit financial information, like my account statements.

Explanation:

2020 edg

Which is used to trace a check back to the account on which it was written?
Group of answer choices

a valid date

an endorsement

a bank route number

a signature

Answers

Answer:

a bank route number

Explanation:

The routing number is among the three numbers found at the bottom of a check. The routing number is at the bottom left.  It serves as an ' identity ' for your bank. The routing number enables other banks to contact your bank and collect funds from your account every time you write a check.

A routing number is a unique number for every banking institution.  The number proves that the bank is a recognized financial institution with an account with the Federal Reserve.

If 135 TV's are sold and cost $275 to produce and is priced at $250, what is the profit/loss?

Answers

Answer:

$25

Explanation:

The production cost is $275.

The selling price is $250

The loss/profit will be: Selling price minus cost price

=$250 - $275

=  -$25

A loss of $25.

If this is the cost for all the 135 TVs, then the loss is only $25.

N:B

If the costs are for one TV, then the loss will be $25 x 135=$3,375

It is the idea being transmitted by the sender to the receiver. It includes three aspects — content , structure and style

Answers

Answer:

decodes and feedback.

Explanation:

It is a message since it is written or recorded words or information sharing or ideas conveyed by the sender to the receiver.  It includes information and communication, how important and useful information is, and can be read in order to understand it.  The structure of a message is tone.

The Style includes how the sender composes and writes a message.

Message is the idea being transmitted.

A Message is a form of communication sent to a recipient who is not present physically and its can be in verbal, written or recorded form.

Message is one of the essential elements of communication process. The other process includes Sender, Encoding, Interference, Communication channel, Receiver, Decoding and Feedback

Roughly, there are 3 purposes for passing message

To inform people of certain subject.To persuade others to do one biddingTo builds one's goodwill.

Learn more about Communication process here

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he U.S. government's ability to pay for Social Security in the near future is a problem because:

Answers

Answer:

Our country's notional debt

Explanation:

TRUE OR FALSE: It is always free to use an ATM if you have a debit card

Answers

Good luck !!! This is what I found

Answer:

False

Some banks/stores will require you to pay if you use an ATM. In some cases, it is not about whether you have a debit card or not. Debit cards are primarily used to remove money from a bank account, not for ATMs.

A _____ is an estimation about a future situation based on the evaluation of facts.

1. projection
2. fact
3. salary
4. growth

Answers

Answer:

Projection

Explanation:

Answer:

Yes the correct answer is (PROJECTION)

Explanation:

WILL MARK BRANLIEST!!!!!
Which portion would not be part of an investment portfolio? (Select the best answer.) commodities funds

a savings account

a savings 529 plan

equity investments in a company

Answers

Answer:

a savings 529 plan

Hope this helps plz mark me brainliest

Answer:

A savings account

Explanation:

Took the quiz

In what circumstance would a property insurance claim be rejected?

Answers

• You don’t file your claim promptly
• The cause of property damage falls under an exclusion condition in your policy.
•You haven’t been paying your insurance premiums.
• The damage isn’t sufficiently documented
•The insurance adjuster finds anything suspicious or false in the claim.
•You didn’t take precautions to prevent further damage after the initial loss.

Jerry's job requires that he wear a suit and tie every day to the office. This is most likely a(n) _____ atmosphere.

Answers

Answer:

I would say a formal or business atmosphere.

Explanation:

The main jobs that require suits are often business atmospheres. However, the wearing of a suit is called formal attire.

Answer:

The answer is formal

Explanation:

I took the quiz and got all of the answers right.

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The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.7 percent. The second fund buys only taxable, short-term commercial paper and yields 5.6 percent. Your federal income tax rate is 35 percent. The third fund specializes in the municipal debt from the state of New Jersey and yields 3.4 percent. Which MMMF offers you the highest yield if you are a resident of Texas, which has no state income tax? 1. Calculate the return for a resident of Texas for each of the alternatives. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) 2. Which MMMF offers you the highest yield if you are a resident of Texas, which has no state income tax? An unusual type of fossil clam is found in rock layers high in the Swiss Alps. The same type of fossil clam is also found in the Rocky Mountains of North America. From this, scientists Conclude that glaciers carried the fosils up the mountains. Othe Rocky Mountains and the Swiss Aips are both volcanic in origin clams once lived in mountains, but have since evolved into sea-dwelling creature. O1 the layers of rocks in which the fossis were found are from the same geologic age The firm has a debt issue outstanding with 23 years to maturity that is quoted at 96% of face value. The issue makes semiannual payments and has an embedded cost of 5% annually. the tax rate is 21%. What is the companys after-tax cost of debt? Select one: a. 5.9% b. 6.1% c. 5.3% d. 4.19%