$200 is received at the end of year 1, $300 is received at the end of year 2, and $400 is received at the end of year 3. If the opportunity cost is 10 percent, their combined present value today is .

$731

Step-by-step explanation:

Data given in the question

Amount received at the end of year 1 = $200

Amount received at the end of year 2 = $300

Amount received at the end of year 3 = $400

Opportunity cost = 10%

The computation of the combined present value today is shown below:

YearCash flowPVF at 10%Present value  

1               $200               0.909         $182

2              $300               0.826              $248

3              $400                0.751              $301

Total combined present value is         $731

The discount factor is computed below:

=  1 ÷ (1 + Interest rate)^number of years

answer:

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

explanation:

service only with 20% tip  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

in the opening of the question the word 'service' is associated only with the pretax value.

the closing part of the question asks: how much did she pay for the  

service

−−−−−−  

so technically the answer is  

→

$

72.6

(

1

+

20

100

)

=

$

87.12

however, the intention of the question provider may have been that your answer is to be  

$

87.12

(

1

+

8

100

)

=

$

94.09

to 2 decimal places.

'

payment just for service  

→

$

87.12

payment for service including tax

→

$

94.09

tony b

mar 21, 2017

answer:

trying to explain it another way

explanation:

service charge  

.

→

$

72.60

20% tip  

20

100

×

$

72.60

=

$

14.52

−−−−−−  

←

add

$

87.12

tax  

8

100

×

$

87.12

=

$

6.97

−−−−−  

←

add

$

94.09

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