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xxMikexx [17]
2 years ago
6

You just won the lottery. congratulations! the jackpot is $10,000,000, paid in eight equal annual payments. the first payment on

the lottery jackpot will be made today. in present value terms, you really won —assuming annual interest rate of 8.00%.
Business
1 answer:
USPshnik [31]2 years ago
6 0

Answer:

An annuity that pays $1,000 at the beginning of each year

PTM of the annuity selling for 2,541.15 $   437.50

Present value of the Jackpot:    $62,063,701

Explanation:

Because is at the beginning, the 1,000 will be generating interest right away.

So even the 500 at the beginning will have a slightly higher rate, it cwon't compensate the 1,000 upfront.

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Assume the MPC is 0.6. If government were to impose $10 billion of new taxes on household income, consumption spending would ini
mihalych1998 [28]

Answer:

$6 billion

Explanation:

Calculation to determine what consumption spending would initially decrease by

Using this formula

Decrease in Consumption spending=MPC * New taxes on household income

Let plug in the formula

Decrease in Consumption spending=0.6*$10 billion

Decrease in Consumption spending=$6 billion

Therefore consumption spending would initially decrease by $6 billion

4 0
3 years ago
2. (double-weight) A European put option is ""in the money."" The price of the underlying security now rises. a. What happens to
sertanlavr [38]

Answer:

(A) premium on put option falls (B) premium on call option rises (C) premium on call changes more in absolute terms

Explanation:

An European put expires on a specific maturity date and can only be exercised on that date. A put option grants the right to sell an underlying security at an exercise price (X) on the exercise date, irrespective of the price the underlying security is trading at (S). On the other hand, a call option grants the right the buy an underlying security at the exercise price. The call or put option buyer will pay a Premium to the option writer to obtain this right. The amount charged as premium depends on how valuable the option is.

The value of a put option (P) = X-S (thus, the lower the price of the underlying security, the more valuable the put option is, vice versa)

The value of a call option (C) = S-X (thus, the higher the price of the underlying security, the more valuation the call option is, vice versa)

If the price of the underlying security rises,

(A) the put option will become less valuable, and its premium will fall

(B) the call option will become more valuable, and its premium will rise.

(C) the absolute size of the change in the call option will be larger than that of the put option. This is because the more the price of the underlying security increases, the more valuable the call option will become (as an example, if I have an option to buy an item at $10 and the current price of the item is $20, I can pay a positive value for that option. If the market price of the item increases to $50, I can pay even more for the option to buy the item at $10).

Whereas, the value of a put option will remain static once the price of the underlying rises beyond the exercise price. For instance, if I have the option to sell an item at $10 when the market price is $20, I just will not exercise the option. I will not change my decision if the market price rises to $50.

3 0
3 years ago
what are two significant strengths that can have an impact on your overall success? why do you think so?
Marina CMI [18]
I’d say bad experience or struggles you have went through can strengthen you
5 0
3 years ago
An appraiser completes an appraisal for a homeowner in preparation for obtaining a loan. The appraiser provides a letter report
Oxana [17]

The situation here is that the appraiser is:

  • Taking a percentage for his services from the appraisal

Based on the given question, we can see than when an appraisal is made, the appraisal which is actually a written report that makes an estimate of the present value of a piece of property.

With this in mind, we can see that the appraiser preferred to take his payment from the percentage value of the <em>value of the property </em>which he appraised. This method is sure to give the appraiser more money than he would have made, especially if the value of the property was quite high.

Read more about appraisal reports here:

brainly.com/question/25088996

3 0
2 years ago
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect:Andy's demand
notsponge [240]

Answer: Andy's demand for beer to increase

Explanation:

Andy's views beer and pizza as complement to each other. Hence when the price of pizza decreases Andy's demand for beer would increase as he would order more beer than pizza so as to complement both offers.

7 0
3 years ago
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