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Alborosie
4 years ago
10

In a recent large PowerBall lottery, the prize was reported to be worth $590 million, which could be taken in 25 equal annual in

stallments of $23.6 million beginning today or as a single payment today of $334 million.a) What interest rate is the lottery commission using?
b) How would you decide whether to take the 25 year annuity or the lump sum?
Business
1 answer:
riadik2000 [5.3K]4 years ago
3 0

Answer:

Explanation:

Interest rate can be calculated using calculator

a) Insert N = 25, PMT = 23.6, PV = -334, FV = 0 => Compute I/Y = 5.0%

b)  

you should take the lump sum payment - IF you could earn a rate higher than 5%

you should take annuity - IF your required return is below 5%

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A local butcher and a worker at a cereal factory both work in what Agriculture, Food, and Natural Resource pathway?
garri49 [273]

The Food Products & Processing Systems is the department in Agriculture, Food, and Natural Resource where the local butcher and a worker at the cereal factory.

The food products $ processing systems is a department in the Food, and Natural Resource

The department is responsible for tasks including:

  • Bulk food production
  • Development of ways to process, package or store food etc

In conclusion, the Food Products & Processing Systems is the pathway in Agriculture, Food, and Natural Resource where the local butcher and a worker at the cereal factory.

Read more about Food Products & Processing Systems

<em>brainly.com/question/24730493</em>

6 0
2 years ago
Which of the following is a difference between common stock and bonds? A) Bondholders have a voice in management; common stockho
alexandr1967 [171]

Answer:

B) Bondholders have a senior claim on assets and income relative to stockholders.

Explanation:

Bond holder: They are one who owns bonds issued by the company, where companies are not liable to pay a dividend if they fail to generate enough profit. Although preferred stock provides added financial leverage in much the same way as bonds, it differs from bonds in that the issuer can pass a dividend payment without suffering the consequences that result when an interest payment is missed on a bond.

Share holder: They are the ones who own stock in a company. The buyer has an option to choose between common stock and preferred stock. The company take priority in paying a dividend to the common stockholder, however, the preferred stockholder has a voting right in the company.  

7 0
3 years ago
Select all that apply.
ExtremeBDS [4]

Answer:

adding up consumption, investment, government expenses, and net exports

adding up the market prices of final goods and services produced in the US

adding up the incomes of producers and taxes paid to the government

Explanation:

GDP is measured by three approaches, namely production, expenditure, and income.

In the <u>expenditure approach</u>, GDP is obtained by the formula GDP = C + G + I + NX, where c is consumption. G is government spending, I  investment, and NX is net exports.  Net export is the difference between imports and exports. The expenditure approach is also the consumption approach.

The <u>production approach c</u>alculates GDP by adding up the value of finished products. The Approach considers new products meant for consumption to avoid double counting.

The <u>income approach</u> recognizes the fact that expenditure is somebody's else income. Income considered includes wages paid to labor, the return on capital in the form of interest, the rent earned by land as well as corporate profits.

5 0
3 years ago
Argument or Nonargument
12345 [234]

Answer:

To focus on the performance...the country does poorly.

Explanation:

Argument or Nonargument

To focus on the performance of the stock market is to zero in on an economic indicator that can do well even as the country does poorly. In 2006, for instance, the Dow Jones industrial average hit highs. According to the just released census data, however, median earnings fell one percent, and millions more Americans entered the ranks of the uninsured. Indeed, from 2000 to 2007 the S&P 500 gained more than 500 points. Meanwhile, the median household income fell by more than $900.The conclusion is....

a) According to the just released..ranks of the uninsured.

b) To focus on the performance...the country does poorly.

c) In 2006, for instance, the Dow Jones...hit highs.

d) Meanwhile...fell by more than $900

The key is to focus on the performance...the country does poorly

4 0
3 years ago
A sinking fund provision is _______ to investors, so bonds with a sinking fund provision generally have _______ yields than bond
olchik [2.2K]

A sinking fund provision is attractive; to investors, so bonds with a sinking fund provision generally have lower yields than bonds without.

What is sinking fund provision?

Sinking provision means setting funds over time which are meant to repay the bond principal amount at bond maturity , in other words, a bond with such provision is safe because to a large extent, there would be no default on repayment of principal.

Besides, the fact that sinking fund provision on bonds is attractive means such bonds would earn lower  yield as there is an inverse relationship between risk and return

Find out more about sinking fund provision on:brainly.com/question/14778799

#SPJ1

Full question with options:

A sinking fund provision is ________ to investors, so bonds with a sinking fund provision generally have _______ yields than bonds without.

a. unattractive; higher

b. unattractive; lower

c. attractive; lower

d. attractive; higher

3 0
2 years ago
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