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expeople1 [14]
3 years ago
6

Freida Farmer, 78 years young, from Karnak, IL has the winning Powerball lottery numbers which will pay out $7 million at the be

ginning of each of the next 30 years (reported prize of $210 million). Before claiming her prize, Dependable Insurance Company offers Frieda $100 million today in exchange for her winning lottery ticket and prize payout. What rate of return would Dependable Insurance earn if Frieda accepts their offer
Business
1 answer:
emmasim [6.3K]3 years ago
6 0

Answer:

6.218%

Explanation:

we can use the present value of an annuity due formula:

present value = annual payment x annuity due factor

  • present value = 100
  • annual payment = 7
  • PV annuity due factor, %, 30 periods = ?

100 = 7 x annuity factor

annuity factor = 100 / 7 = 14.28571429 ≈ 14.286

using an annuity calculator, the interest rate for a PV annuity factor, 30 periods and equal to 14.286 is 6.218%

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Westkost [7]

Answer:

1) You get what you get and don't throw a fit?

2)Be patient???

I hope this helps TwT

6 0
2 years ago
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Random girl from the web.
4 0
3 years ago
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Risk management refers to the practice of identifying potential risks in advance, analyzing them and taking precautionary steps
allsm [11]

Answer:

True

Explanation:

Risk management is the practice of identification of number of risks that the organization faces and then assessing each of them. After assessment of the risks, the organization try to find ways to eliminate or reduce each single risk so that the business operations do not get affected. The precautionary measures can be simply avoid the risk, face the risk, share the risk (Insurance) and reduce the risk to acceptable level.

8 0
3 years ago
Brody owns all the stock in Mongoose Corporation. Brody has a basis of $200,000 in the Mongoose stock, which currently has a fai
oee [108]

Answer:

d. None of the above.

Explanation:

Option D is correct because Brody has a basis of $200000 Mongoose stock and its market value is $500000. After the merger, Brody receives $200000 preferred stock and $300000 common stock which is equal to its market value of a stock before the merger so there is no gain.

3 0
3 years ago
Misk Co. purchased the following securities during 2018 to be classified as held-to-maturity securities, trading securities, or
shtirl [24]

Answer:

C. III only

Explanation:

Option III states An investment in stock that Misk does not intend to sell in the near future. Which of above securities purchased by Misk should be classified as available-for-sale securities?

The choice of this option alone is based on the reasoning that Available for Sale (AFS) Securities are usually presented based on their fair values. As such an increase in investment will be needed when the Fair value exceeds is more than the cost of the securities.

The other effect of the transaction of Misk Co is that it will lead to an increase in other comprehensive income.

4 0
3 years ago
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