The prize is really worth $1,006,512.21.
<h3>What is present value?</h3>
Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000
The present value can be determined using a financial calculator
Cash flow from year 1 to 10 = $150,000
Discount rate = 8%
Present value = $1,006,512.21
Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.
To learn more about present value, please check: brainly.com/question/25748668
Answer:
Note: <em>The complete question is attached as picture below</em>
1a. The one year spot rate can be calculated using the one year zero bond.
PV * (1 + S1) = FV
1 + S1 = 1000 / 900
S1 = 1.1111 - 1
S1 = 0.1111
S1 = 11.11%
1b. PV of the 2 year bond = $950
Annual coupon = 1000 * 5% = $50
950 = 50 / (1 + S1) + (50 + 1000) / (1 + S2)^2
950 = 50 / 1.1111 + 1,050 / (1 + S2)^2
1,050/ (1 + S2)^2 = 950 - 45 = 905
(1 + S2)^2 = 1050 / 905
1 + S2 = 1.160221/2
S2 = 7.714%
1c. Price of the 2 year zero bond = 1,000 / (1 + 0.07714)^2
Price of the 2 year zero bond = 1,000 / 1.1602
Price of the 2 year zero bond = 861.9203586
Price of the 2 year zero bond = $861.92
Answer:
A. True
Explanation:
In order to be on student council, you must already know how to lead. Student council isn't you learn to lead. It's meant to show others how to lead.
Answer:1.Even though Kelly did not actively post the leaked information on social media, Don and the rest of the management team decided she was still responsible for the social media infringement because she
a.told someone information which led to the social media post.
2.In the case of Serena’s social media complaints about the company, Don says the key is that, though her comments did not put the company in a good light, there are important lines she did not cross. ________, racial bias, and foul language are the three examples he cites that would beinfringements on company social media policies.
a.Hate speech
3.What is Don’s response when Kelly tells him that the assistant manager labelled social media training a “low priority”?
a.He makes a note to make sure it’ll never happen again.
4.When Kelly continues to argue against the decision to let her go, Don tells her that he is sorry to see her go and that he will give her the best reference he can under the circumstances. Here, what is his strategy for managing this difficult confrontation?
a.showing empathy for the employee
5.After the confrontation with Kelly, Don says that one thing that did not help the decision to let Kelly go was that she refused to take ________ for the social media violation.
a.responsibility
Explanation:
