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
sergij07 [2.7K]
3 years ago
11

If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he ne

ed to fund his prizes
Business
1 answer:
Stels [109]3 years ago
5 0

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71

You might be interested in
risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon
Ipatiy [6.2K]

Answer:

<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.

<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.

Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.

3 0
4 years ago
What are the four factors underlying the free enterprise system?
enyata [817]

Answer:

profit,risk,competition and productivity

3 0
3 years ago
The funds provided by common stockholders that consist of common stock, paid-in capital and retained earnings are referred to as
Gnesinka [82]

Answer:

e. net worth.

Explanation:

According to my research on different financial assets held by firms, I can say that based on the information provided within the question these are all referred to as the firm's net cash. This is also known as the Common Stockholders' Equity which is formally defined as the company's share capital and retained earnings minus its treasury stock.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
4 years ago
Which key is used to indent the first line of a paragraph to the right? A. Ctrl B. Shift C. Tab D. Enter E. Alt
Nina [5.8K]

Answer:

C. Tab

Explanation:

7 0
3 years ago
Read 2 more answers
Cholula hot sauce, a mexican made chili-based sauce brand, is introducing a new hot sauce flavor and wants to use its owners’ un
Flura [38]

Since Cholula company is sampling the new sauce at a number of supermarkets in texas, where there are multiple market segments likely to enjoy hot sauces, then, the tactics employed is called <u>motivating</u><u>.</u>

<u />

<u />

<h3>What is motivating?</h3>

The term "motivating" is not limited to employee and employer, it is used by firm to induce potential and existing customer to buy their product.

In conclusion, the tactics employed by Cholula company is called <u>motivating</u><u>.</u>

<u />

Read more about motivating

<em>brainly.com/question/6853726</em>

6 0
2 years ago
Other questions:
  • Mountain Lake Corporation's accounting records show the following at year-end December 31, 2014:
    14·1 answer
  • Although best used as a last resort, many small businesses find it convenient to use __________ as a short-term source of financ
    7·1 answer
  • A methods and measurements analyst needs to develop a time standard for a certain task. In a preliminary study, he observed one
    13·1 answer
  • manufactures two products: A and B. The company's accounting records revealed the following per-unit costs for direct materials
    9·1 answer
  • The Securities and Exchange Commission and the Federal Aviation Administration are examples of agencies engaged in A. the regula
    14·1 answer
  • _________ is the systematic study of a job’s tasks, duties, and responsibilities and the knowledge, skills, and abilities needed
    11·1 answer
  • 1. What are the responsibilities of a section officer?
    5·1 answer
  • On January 12, 2021, Jefferson Corporation purchased bonds of Rose Corporation for $75 million at par and classified the securit
    13·1 answer
  • Oriole, Inc., stock has a beta of 1.60. If the expected market return is 17.5 percent and the risk-free rate is 7.0 percent, wha
    12·1 answer
  • True or False?<br> Social workers work at both the state and national level.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!