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Alona [7]
3 years ago
7

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the

prize money is guaranteed by AAA bonds yielding 4% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors have to deposit in the escrow account? (Round your answer to the nearest cent.)
Business
1 answer:
Angelina_Jolie [31]3 years ago
4 0

Answer:

contest sponsors have to deposit $6795163.17 in the escrow account

Explanation:

given data

amount = $10 million

time = 20 year

rate = 4 %

to find out

how much do the contest sponsors have to deposit in the escrow account

solution

we know Cash flow per period = 10000000/20 = $500000

we will apply here future value formula to find amount

future value = cash flow × \frac{1-(1+r)^{-t}}{r}

here r is rate and t is time

put here value

future value = 500000 × \frac{1-(1+0.04)^{-20}}{0.04}

future value = 6795163.1724

so contest sponsors have to deposit $6795163.17 in the escrow account

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Answer:

Each player can adopt a T for T strategy or a trigg er strategy. It is important to state that these strategies were not possible in a one-time game.

The equilibrium is that both players answer honest and each makes normal profit.

Both games, the P risoners' dilemma and this game, have a cooperative equilibrium in the long term. If a player employs a trig ger strategy or a T for T strategy, they can reach the cooperative honesty/honesty outcome.

In a short term, game equilibrium is not likely due to lying is more profitable than answer honestly deploying stated strategies.

Reference: NomCab HSEONE.  “PS8- solution.” Academia , 2019.

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3 years ago
Jack recently took out a loan from Diane at an interest rate of 4 percent. Diane expected this year’s inflation rate to be 1 per
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The complete question has been added with an image for better understanding of the concept. The beneficiaries of the inflation and interest rates will be,

  1. When inflation is 1 percent, Diane will benefit more than Jack;
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<h3>What is inflation?</h3>

A given increase in rates or prices of any commodity, including monies, over a particular financial period is known as inflation.

The rates and beneficiaries due to the unexpected change in inflation for the above situation is given attached in the image in the form of a table.

Hence, the significance of inflation is as mentioned.

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Counterfeit questions are associated with which gibb component? select one:
ruslelena [56]
The answer is d. strategy
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The Employee Theft coverage of the ISO commercial crime program: a. requires that individual employees be specifically named. b.
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(a) requires that individual employees be specifically named.

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3 years ago
Can someone help me please????????
olga_2 [115]

Answer:

25% = 0.25 = 25/100 --> 1/4

90% = 0.90 = 90/100 --> 9/10

60% = 0.6 = 3/5

35% = 0.35 = 35/100 --> 7/20

33.3...% = 0.33...  = 1/3

65% = 0.65 = 65/100 --> 13/20

How to calculate percentage:

[From decimal]

Decimal x 100 = percentage

e.g. 0.2 x 100 = 20%

[From fraction]

Numerator / Denominator x 100 = percentage

top number / bottom number x 100 = percentage

e.g. 3/5 --> 3 / 5 x 100 = 0.6 x 100 = 60%

How to calculate decimal:

[From percentage]

Percentage / 100 = Decimal

e.g. 45% / 100 = 0.45

[From fraction]

Numerator / Denominator = Decimal

top number / bottom number = Decimal

e.g. 7/8 = 7 / 8 = 0.875

How to calculate fraction:

[From percentage]

Percentage number / 100 --> simplify

e.g. 38% --> 38/100 --> 19/50

[From decimal]

Decimal x 100 / 100 --> simplify

e.g. 0.75 --> 0.75 x 100 = 75 --> 75/100 --> 3/4

Hope this helps :)

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3 years ago
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