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Andrei [34K]
3 years ago
6

When Alfred Nobel​ died, he left the majority of his estate to fund five​ prizes, each to be awarded annually in perpetuity star

ting one year after he died​ (the sixth​ one, in​ economics, was added​ later). a. If he wanted the cash award of each of the five prizes to be ​$ and his estate could earn ​% per​ year, how much would he need to fund his​ prizes? b. If he wanted the value of each prize to grow by ​% per year​ (perhaps to keep up with​ inflation), how much would he need to​ leave? Assume that the first amount was still ​$. c. His heirs were surprised by his will and fought it. If they had been able to keep the amount of money you calculated in ​(b​), and had invested it at ​% per​ year, how much would they have in​ 2014, 118 years after his​ death?
Business
1 answer:
Vaselesa [24]3 years ago
8 0

Answer:

the numbers are missing, so I looked for similar questions:

When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded annually in perpetuity starting one year after he died (the sixth one, in economics, was added later). a. If he wanted the cash award of each of the five prizes to be $33,000 and his estate could earn 7% per year, how much would he need to fund his prizes? b. If he wanted the value of each prize to grow by 6% per year (perhaps to keep up with inflation), how much would he need to leave? Assume that the first amount was still $33,000 c. His heirs were surprised by his will and fought it. If they had been able to keep the amount of money you calculated in (b), and had invested it at 7% per year, how much would they have in 2014, 118 years after his death?

a) total amount of prizes = $33,000 x 5 = $165,000

using the perpetuity formula, present value = annual payment / discount rate

money needed in trust fund = $165,000 / 0.07 = $2,357,142.86

b) we need to use the growing perpetuity formula:

money needed in trust fund = $165,000 / (0.07 - 0.06) = $165,000 / 0.01 = $16,500,000

c) future value = present value x (1 + r) = $16,500,000 x (1 + 7%)¹¹⁴ = $36,917.7 million

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Answer:

Property tax is progressive

Sales Tax is regressive

A progressive tax is one that takes a higher proportion of revenue from high-income people than it does from low-income people. A regressive tax is one that takes a higher percentage of low-income people's income than it does from high-income people.

Explanation:

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2 years ago
Elijah, who is single, is employed as a full-time high school teacher. The school district where he works recently instituted a
Fofino [41]

Answer:

A. Tuition $4,000

B. $8,665

Explanation:

A..Based on the information given the expenses that might qualify as deductions for AGI(ADJUSTED GROSS INCOME) is TUITION

The amount of the expenses that might

qualify as deductions for AGI is the tuition amount of $4,000 reason been that we were told that he spent the amount of $6,600 on tuition and secondly the AGI(ADJUSTED GROSS INCOME limitations are not higher than the unmarried return of the amount of $65,000

b. Calculation to determine How much of these expenses might qualify as deductions from AGI

Tuition$2,600

($6,600 − $4,000)

Add Books and course materials $1,500

Add Lodging $1,700

Add Meals $1,100

($2,200 × 50% cutback adjustment)

Add Laundry and dry cleaning $200

Add Campus parking $300

Add Auto mileage $1,265

(2,200 miles × $.575)

Total deduction from AGI $8,665

Therefore The Amount of the expenses that might qualify as deductions from AGI is $8,665

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3 years ago
What are examples of financial goals? Check all that apply.
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Answer:

Skylar wants to pay off her college student loans within five years and Lukas wants to earn at least $40,000 per year.

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3 years ago
Read 2 more answers
Delilah purchased a wheelchair with an installment loan that has an APR of 18 percent. The wheelchair sells for $2,007. The stor
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Answer:

$748.48

Explanation:

Cost of wheelchair = $2,007

Down payment = Cost of wheelchair*20% = $2,007*20% = $401.40

Amount of finance = Cost of wheelchair - Down payment = $2,007 - $401.40 = $1,605.60

Interest rate = 18% * 1/12 = 1.5%per month

Term = 54 month

Monthly payment = Amount of finance*I/[1-(1+I)^-n]

Monthly payment =  $1,605.60*1.5%/[1-(1+1.5%)^-54]

Monthly payment = $1,605.60*1.5%/[1 - 0.447541]

Monthly payment = $1,605.60*0.015/0.55246

Monthly payment = $43.59411

Total amount paying for loan over a period = Monthly payment * Term = $43.59411 * 54 = $2354.08

Amount of finance charge = Total amount paying for loan - Amount of loan

Amount of finance charge = $2354.08 - $1,605.60

Amount of finance charge = $748.48

5 0
3 years ago
On the end-of-period spreadsheet, Supplies has a balance of $2,000 in the Unadjusted Trial Balance Debit column and an adjustmen
Mademuasel [1]

Answer:

$1,500

Explanation:

On the end-of-period spreadsheet, the credit adjustment of $500 is made in the Debit balance of Supplies inventory, which will net off the values and resulted Supplies Inventory value will be $1,500 at the end of the year and it will be reported on the financial statements. $1,500 should be appeared for supplies in the adjusted Trial Balance column.

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