1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andre45 [30]
3 years ago
5

Answer each of the following independent questions.

Business
1 answer:
amid [387]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes:

(1) $86,000 cash immediately

(2) $32,000 cash immediately and a six-period annuity of $9,200 beginning one year from today

(3) a six-period annuity of $17,400 beginning one year from today.

1)

A) i= 0.06

i) PV= 86,000

ii) First, we need to calculate the final value of the annuity:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {9,200*[(1.06^6)-1]}/0.06 + [(9,200*1.06^6)-9,200]= 68,023.31

PV= FV/(1+i)^n= 68,023.31/1.06^6= 47,953.75 + 32,000= $79,953.75

ii) FV= {17,400*[(1.06^6)-1]}/0.06 + [(17,400*1.06^6)-17,400]= 128,652.77

PV= 128,652.77/1.06^6= $90,695.13

B) The option with the higher present value is option 3. Therefore, it is the best option.

2) Weimer will make annual deposits of $170,000 into a special bank account at the end of each of 10 years beginning December 31, 2016.

Assuming that the bank account pays 7% interest compounded annually.

FV= {A*[(1+i)^n-1]}/i

FV= {170,000*[(1.07^10)-1]}/0.07

FV= $2,348,796.15

You might be interested in
In the context of performance appraisal dimensions and standards, the goal of meeting product specification standards is an exam
Vadim26 [7]

Answer:

Output measure:

Explanation:

Output measure:

it is structured report on business output that describe about the goal achievement, illustrating the point that is beneficial for the project etc.

it consist of all details about any task, like quantity of material produce, how much of it delivered to the next level. it doesn't mentioned the internal factor like quality of work that would impact the stakeholder.

4 0
3 years ago
Describe the benefits of branding? ​
Kobotan [32]

Answer:

u get free stuff out of it

3 0
3 years ago
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for
marysya [2.9K]

Answer: 40 pounds

Explanation:

Given the following :

Ordering cost = $10 / order

Carrying cost = 4 cents per pound per day

Cost of pepperoni = $3 per pound

Daily demand = 20 pounds

Order quantity = 80 pounds

Average inventory level at the time in which 80 pounds of pepperoni was ordered is given as

Average inventory level is given as :

Order quantity / 2

80 pounds / 2 = 40 pounds

6 0
3 years ago
Software is considered the _______________ part of the computer, whereas the hardware is considered the _______________ part. ex
asambeis [7]

variable, invariable

6 0
3 years ago
A man needed money to buy lawn equipment. He borrowed ​$700.00 for five months and paid ​$53.95 in interest. What was the rate o
Westkost [7]

<u>Answer:</u> The rate of interest per year is 18.49 %.

<u>Explanation:</u>

To calculate the rate of interest, we use the equation:

\text{Interest paid}=\text{Amount borrowed}\times \text{Rate of interest}\times \text{Time}

where,

Interest paid = $ 53.95

Amount borrowed = $ 700

Rate of interest = ?

Time = 5 months = \frac{5}{12}    (Conversion factor: 1 yr = 12 months)

Putting values in above equation, we get:

\$53.95=\$700\times \text{Rate of interest}\times \frac{5}{12}\\\\\text{Rate of interest}=0.1849\times 100=18.49\%

Hence, the rate of interest per year is 18.49 %.

8 0
3 years ago
Other questions:
  • Havermill co. establishes a $470 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated recei
    5·1 answer
  • Clement applies for a home loan at Global Bank Inc. As part of the process, he provides his personal details to the banker who i
    11·1 answer
  • 1. Which of the following would a person who works in trade labor enjoy doing? Select all that apply.
    10·2 answers
  • Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a serie
    15·1 answer
  • Gabriel Manufacturing must implement a manufacturing process that reduces the amount of toxic by-products Two processes have bee
    12·1 answer
  • George, the marketing manager of Axil Bicycles, discovers that the company's current market is becoming stagnant and the product
    10·1 answer
  • If the monopolist faces a constant marginal cost of $5, how much output should the firm produce in order to equal marginal reven
    12·1 answer
  • What is a creditor legally required to do if you dispute a debt?
    6·1 answer
  • Suppose a u. S. Treasury bond will pay $4,475 five years from now. If the going interest rate on 5-year treasury bonds is 4. 25%
    11·1 answer
  • stock x has a standard deviation of 21% per year and stock y has a standard deviation of 6% per year. the correlation between st
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!