What is the present value of the annuity

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Reference no: EM132005997

1. Assuming the selling price is greater than the total cost per unit, the contribution margin must increase as:

A) the gap between the sales price and the variable cost per unit widens.

B) the difference between the sales price and the fixed cost per unit increases.

C) both the sales price and variable cost per unit increase.

D) the fixed cost per unit declines.

E) the sales price per unit declines.

2. What is the present value of the following annuity? $2165 every year at the end of the year for the next 12 years, discounted back to the present at 3.87% per year, compounded annually?

3. For the next 8 years, you decide to place $4541 in equal year-end deposits into a savings account earning 6.14% per year. How much money will be in the account at the end of that time period?

Reference no: EM132005997

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