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kirza4 [7]
2 years ago
11

Suppose two athletes each sign 10-year contracts for $80 million. In one case, we’re told that the $80 million will be paid in 1

0 equal installments. In the other case, we’re told that the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year. Who got the better deal?
Business
1 answer:
marusya05 [52]2 years ago
7 0

Answer:

The athlete with equal installments got the better deal.

Explanation:

Two athletes each sign 10-year contracts for $80 million.

In one case, we’re told that the $80 million will be paid in 10 equal installments.

In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.

The one with equal installments will get $8 million every year.

But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.

Though the total value of both the annuities will remain the same.

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On january 2, 2017, the matthews band acquires sound equipment for concert performances at a cost of $68,200. the band estimates
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It estimates that after five years it can sell the equipment for $2,000. During year 2017, the band performs 55 concerts.

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give an example of a fairly major purchasing decision you've made in your lifetime. how did you justify the purchase? How did yo
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Well over 50% of all projects fail. Research and discuss how the planning process plays an important role in the success or fail
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Project planning plays an essential role in helping guide stakeholders, sponsors, teams, and the project manager through other project phases. Planning is needed to identify desired goals, reduce risks, avoid missed deadlines, and ultimately deliver the agreed product, service or result.

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Communications

Costs

Human resources

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Quality of deliverables

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3 years ago
An investor originally paid $22,000 for a vacant lot twelve years ago. If the investor is able to sell the lot today for $62,000
MArishka [77]

Answer:

b.9%

Explanation:

Formula for annual rate of return formula is as follows;

Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1

t = the total holding period of investment = 12 years

Old value = 22,000

New value = 62,000

Next, plug in the numbers to the formula;

Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1

r = [2.8182 ^(1/12)] - 1

r = 1.0902 -1

r = 0.0902 or 9%

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