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Shalnov [3]
3 years ago
5

A judge denied a 94-year-old woman s attempt to force a Lottery Commission to pay her $3.9 million winnings up front on the grou

nds that she otherwise won't live long enough to collect it all. The woman already received an immediate payment of $161,454, and she will receive 22 annual gross checks of $169,934. Suppose that she were able to find a buyer who was willing to buy her lottery ticket which means that the buyer would receive 22 annual gross checks of $169,934. If the woman could invest her money from selling the lottery ticket at 5.1% interest, what would be the fair amount to trade her 22 future lottery receipts
Business
1 answer:
VikaD [51]3 years ago
3 0

Answer:

$2,216,588.59

Explanation:

The fair amount to trade her 22 future lottery receipts is the present worth of the future payments discounted using 5.1% discount rate as shown below.

The present value can be computed using the excel present value formula:

=pv(rate,nper,pmt,fv)

rate is the interest /discount rate of 5.1%

nper is the number of times the future payment would be made which is 22

pmt is the amount of each future payment.

fv is the future value worth of the 22 payments which is not known hence taken as zero

=-pv(5.1%,22,169,934,0)=$2,216,588.59  

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Answer:

C. Reduced prices of Sony televisions resulted in an increase in the quantity demanded.

Explanation:

Sony is a well known brand . What could explain a sudden double increase in sales while other brands' didn't is most likely a reduction in in prices of Sony products. It is a well known brand and they sell quality products which customers trust. Having a discounted price means they are offering a sale which customers would want to take advantage of.

3 0
3 years ago
Jamie earned a raise in pay when he finished the training for the Technician 2 position. He will receive another raise when he f
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Answer: Structured compensation program

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5 0
3 years ago
Holiday Corp. has two divisions, Quail and Marlin Quail produces a widget that Marlin could use in its production Quail's variab
Neporo4naja [7]

Answer:

Cost savings when transfer are made = $0

Explanation:

In the question it was given that Quail is operating at capacity, then the  Minimum and Maximum transfer price would be market price = $15.80

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Cost savings when transfer are made = $0

5 0
3 years ago
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JulsSmile [24]

Answer:

Increase, Decrease

Explanation:

A decrease in the supply results in many buyers competing for very few goods. If the demand is constant, the quantity supplied and price have an indirect relationship. A decrease in the volume of supplied results in an increase in price. Many buyers will be competing for a few products causing the equilibrium price to increase.

A decrease in supply will cause the quantity available for buyers to buy to decline. Consequently, the volume purchased will be fewer.  Equilibrium quantity will, therefore, decrease.

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3 years ago
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<span>Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.</span>
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3 years ago
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