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Misha Larkins [42]
3 years ago
7

Your girlfriend just won the florida lottery. she has the choice of $13,800,000 today or a 20-year annuity of $1,050,000, with t

he first payment coming one year from today. what rate of return is built into the annuity? disregard taxes.
a. 3.77%
b. 4.38%
c. 3.90%
d. 4.03%
e. 4.12%
Mathematics
1 answer:
Ray Of Light [21]3 years ago
7 0
The answer is <span>b. 4.38%

</span>

An annuity that is worth $13,800,000.00 today, that lasts 20 time periods and pays a constant $1,050,000.00 over each time period has an interest rate of 4.38%.

Explanation:

With a 4.38% interest rate, the present value of the payments is lower than the future value. Thus, the $1,050,000.00 you will be receiving in orderly payments is worth less today than it will be tomorrow. This condition is consistent with the time value of money, which states that with time money appreciates rather than depreciates. In other words, if you invest the $1,050,000.00 payment, its value over 20 time periods will increase.

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What proportion could you use to find the value of x
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The proportion that could be used to find the value of x is 3/x= x/11

<h3>How to determine the proportion?</h3>

The complete question is added as an attachment

From the attachment, the common side length between both right triangles is x

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Write a real world problem for 5/6 divided by 1/12
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3 years ago
Find the common ratio for this geometric sequence 8, 2, 1/2, 1/8, 1/32
kompoz [17]

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~

7 0
3 years ago
Read 2 more answers
PLEASE HELP ME OUT !!! WILL APPRECIATE IT SO MUCH !!
mash [69]
Start with the general formula. The key word is difference. So the general formula is 

D(x) = W(x) - R(x) Now substitute in the values for W(x) and R(x)
D(x) = 0.002x^3 - 0.01x^2 - (x^2 - 4x  + 13) Be very careful about the sign in front of the brackets.

D(x) = 0.002x^3 - 0.01x^2 - x^2 + 4x - 13 Do you see what that minus sign did? It affected all 3 terms.

D(x) = 0.002x^3 - 1.01x^2 + 4x - 13 <em>Note: -0.01 - 1x^2 = - 1.01 x^2</em>
That gives you a clear cut answer

C<<<<< answer.

That sign is the worst part of the question. Make sure you understand what it did.
4 0
3 years ago
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