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frozen [14]
3 years ago
10

A "Name That Tune" contest has a grand prize of $500,000. However, the contest stipulates that the winner will receive just $200

,000 immediately, and $30,000 at the end of each of the next 10 years. Assuming that one can earn 8% on their money, how much has the contest winner actually won?
(A) 1,302
(B) $201,302
(C) $401,302
(D) $500,000
(E) None of the above
Business
1 answer:
Alexxx [7]3 years ago
3 0

Answer:

The correct answer is (C) $401,302

Explanation:

To get how much the contest winner actually won, we have to calculate the amount receive at the end of each year discounted at this moment. Then,  we added  all the payments.  

For example, the first payment in  $200,000 at this moment,  so we add  $200,000.  

At the end of the first year we receive $30,000, and the rate of discount is 8%

The formula of discount is P=A/ (1+r)ⁿ

A=Final amount  

P= Principal

r= interest rate

n= time

Year 1 = A/ (1+r)ⁿ =$30,000/1,08¹= 27777,77

Year 2 =$30,000/1,08²= 25720,16

Year 3=23814,96

Year 4=22050,89

Year 5=20417,49

Year 6=18905,08

Year 7=17504,71

Year 8=16208,06

Year 9=15007,46

Year 10=13895,80

 

Total  401302,44

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Perform a horizontal analysis providing both the amount and percentage change. (Round Percentage answers to 1 decimal place. Dec
True [87]

Answer:

Find attached

Explanation:

Horizontal or trend analysis involves is a financial statement analysis technique that shows the percentage change or dollar change in a corresponding financial statement's item.

For example, the change in the fixed assets by a way of increase or decrease compared to last year's financial statements.

Formula:

change in a particular line item=(current year amount/previous year)-1

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3 years ago
What makes the demand for u. s. dollars change? in world demand for u. s. exports ______ the demand for u. s. dollars. a in the
loris [4]

In the world demand for US, exports <u>increase</u> the demand for US dollars. a in the US interest rate differential <u>decreases</u> the demand for US dollars

An interest rate tells you how excessive the cost of borrowing is, or excessive the rewards are for saving. So, if you're a borrower, the interest charge is the quantity you're charged for borrowing cash, proven as a percentage of the total amount of the mortgage.

Traditionally, the guideline of thumb is that refinancing is a superb idea if you can reduce your interest rate by way of a minimum of 2%. but, many creditors say 1% financial savings is sufficient of an incentive to refinance.

As interest rates circulate up, the value of borrowing becomes more costly. because of this call, lower-yield bonds will drop, causing their price to drop. As interest prices fall, it will become less complicated to borrow money, and plenty of corporations will issue new bonds to finance growth.

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5 0
1 year ago
The annual carrying cost for a consumer product is $115, the ordering cost is $1,150, and the annual demand is estimated to be 1
STatiana [176]

Answer:

Store should take the advantage of discount.

Explanation:

Economic order quantity is the level of units ordered which minimize the total cost.

The economic order quantity (EOQ) is computed by applying the following formula

EOQ = [ ( 2DO ) / H ]^1/2

where D = Annual Demand in units = 1,000

S = Setup or ordering cost = $1,150

H = Holding or carrying cost per unit, per year = $115

EOQ = [ ( 2 x 1,000 x $1,150 ) / $115 ]^1/2

EOQ = [ $2,300,000 / $115 ]^1/2

EOQ = 20,000^1/2

EOQ = 141.42 units

Cost of EOQ

Purchasing cost =  1,000 x $810 = $810,000

Ordering cost = (1,000 / 141.42) x $1,150 = $8,132

Carrying cost = ( 141.42 / 2 ) x $115 = $8,132

Total cost = $810,000 + $8,132 + $8,132 = $826,264

Cost of Discount

Purchasing cost =  1,000 x $810 x 80% = $648,000

Ordering cost = (1,000 / 151) x $1,150 = $7,616

Carrying cost = ( 151 / 2 ) x $115 = $8,683

Total cost = $648,000 + $7,616 + $8,683 = $664,299

Store should take the advantage of discount because it incurs lower cost.

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Answer:

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By definition, the cultural approach to deal with authoritative communication investigates an association by thinking about antiques, qualities, and presumptions that happen as a result of the connections of hierarchical individuals. Relics are the standards, gauges, and customs you see in hierarchical correspondence.

Pacanowsky applied Geertz's information on organisations. They said culture is networks of essentials, frameworks of shared significance. A social exhibition is the means by which we uncover our way of life to ourselves as well as other people. To examine societies, you should utilize ethnography a method for finding who individuals are inside a culture.

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