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Alona [7]
4 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]4 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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William has developed a better type of medication vial for travelers. He is not sure how to develop a marketing program for his
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Answer: keyword analysis

Explanation: keyword analysis is a method skilled people in boosting the quality and amount of the quantity of data sent and received by people that visit a website by increasing the visibility of a website to users of internet search engine, make use of in other to locate and study alternate search words that individuals input into search engines while searching for the same topic.

5 0
4 years ago
Xyz corporation has suffered a major downturn in business and will not be able to pay interest on its bonds. this is an example
pshichka [43]

Answer:

The correct answer would be option A, Financial.

Explanation:

Xyz corporation has suffered a major downturn in business, and will not be able to pay interests on its bonds. This is an example of Financial Risk.

When companies or corporations face downturns in business, they actually encounter financial losses which in turn will affect the corporation and the shareholder or stockholders or bond holders. People who invested in the bonds of the company will not be able to get interests on their investments with the corporation. This is because the corporation is suffering financially and can't pay money or interest to the bond holders. This is a true financial risk for the investors as well as for the corporation.

8 0
3 years ago
Simon decided to invest $8,000 in the stock market one day early in 2008. Six months after he invested, on July 17, the stocks h
Dmitriy789 [7]

Answer:

At this point, Simon has lost $1,000 of his money.

Explanation:

This can be determined by calculating the current value of Simon's investment as follows:

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Value of the investment on October 17 = Value of the investment on July 17 * (100% + Percentage of increase) = $4,000 * (100% + 75%) = $7,000

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Therefore, at this point, Simon has lost $1,000 of his money.

3 0
3 years ago
a-1. Annual payment of $1,025 for 11 years at 4% interest. (Do not round intermediate calculations. Round your answer to 2 decim
Karo-lina-s [1.5K]

Answer:

a-1//   8,979.49

a-2//    9613.14

b-1//    5,154.36

b-2//   4,676.51

Explanation:

We will calculate each present value using the formula for present value of an ordinary annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

a-1

C 1,025

time 11

rate 0.04

1025 \times \frac{1-(1+0.04)^{-11} }{0.04} = PV\\

PV $8,979.4886

a-2

C 825

time 16

rate 0.04

825 \times \frac{1-(1+0.04)^{-16} }{0.04} = PV\\

PV $9,613.1439

b-1

C 1,025

time 11

rate 0.16

1025 \times \frac{1-(1+0.16)^{-11} }{0.16} = PV\\

PV $5,154.3605

b-2

C 825

time 16

rate 0.16

825 \times \frac{1-(1+0.16)^{-16} }{0.16} = PV\\

PV $4,676.5098

6 0
3 years ago
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KATRIN_1 [288]
<span>Jeb was defining segments using DEMOGRAPHIC considerations.

There are 4 types of segmentation.
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2) Demographic
3) Psychographic
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Demographic segmentation considers who the customers are. Data that are required to be collected to know who the customers are 1) age, 2) gender, 3) income, 4) social class, 5) religion, and 6) race or family life cycle.

People who want high quality car are usually big income earners. People who wants low-priced cars are usually small income earners or even students who just got their drivers license. 


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3 0
3 years ago
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