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
bonufazy [111]
3 years ago
8

Prizes are often not "worth" as much as claimed. Place a value on a prize of $5,000,000 that is to be received in equal annual p

ayments over the next 20 years, with the first payment beginning today. Assume an interest rate of 7 percent over the 20-year period.A) $2,212,652B) $2,648,504C) $2,833,899D) $2,950,567A
Business
1 answer:
denis23 [38]3 years ago
6 0

Answer:

C) $2,833,899

Explanation:

This is an "annuity due " type of question, it is asking for  the Present value (PV) or present worth of an annually recurring equal payment; PMT.

First, divide 5,000,000 by 20 to get equal payment = 250,000

Using a financial calculator on "BGN" mode, input the following;

N= 20

I/Y = 7%

PMT = 250,000

FV = 0

then compute present value; CPT PV = 2,833,898.81

Therefore, it will be worth $2,833,899

You might be interested in
Frolic Corporation has budgeted sales and production over the next quarter as follows: August September Sales in units Productio
Black_prince [1.1K]
Bro its c im sure just put c
5 0
2 years ago
On December 1, Milka Inc. borrows $500,000 from the bank. Interest of 6% is due in six months. On December 31, Milka recognizes
Leokris [45]

Milka's balance sheet reports: Interest payable for one month.

<h3>What is interest?</h3>

The fee you pay to borrow money or the fee you charge to lend money is called interest.

Some features of interest are-

  • The fee paid for the privilege of borrowing money is called interest, and it is often stated as an annual percentage rate (APR).
  • The compensation a lender or financial organization receives for giving out money is called interest.
  • The most common way to represent interest is as a yearly percentage of the loan amount.
  • The interest rate on the loan is known as this percentage.
  • For instance, if you put money in a savings account, a bank will provide you interest.

The three types of interest include -

  1. simple (regular) interest: The daily interest rate, the principle, and the number of days between payments are multiplied to determine simple interest.
  2. accrued interest: The amount of interest accrued on a loan or other financial obligation as of a certain date that has not yet been paid back.
  3. compounding interest: The interest you earn on interest is known as compound interest. Simple math may be used to demonstrate this: If you have $100 and it generates 5% interest annually, you will have $105 at the end of the first year. You'll have $110.25 after the second year is over.

To know more about the estimation of simple interest, here

brainly.com/question/2294792

#SPJ4

5 0
2 years ago
When the body senses warmer temperatures, what happens to the blood vessels?
Molodets [167]

Answer:

When we get too hot, sweat glands in the skin release more sweat. The sweat evaporates, transferring heat energy from the skin to the environment. 

7 0
2 years ago
Read 2 more answers
Mobile networks and infrastructure have the potential to reduce healthcare costs. Tracking medical equipment and hospital invent
3241004551 [841]

Answer:

Okay, of all your choices it is most definitely going to be RFID tagging

Explanation:

4 0
3 years ago
Equilibrium income is that level of income:______. a. which an economy is capable of producing without generating accelerating i
Phoenix [80]

Answer:

The correct answer is: c. toward which the economy gravitates in the short-run.

Explanation:

In the economic context, the Short Term is a period in which an economy does not have enough time to change its fixed expenses in order to reach new levels of profitability or production, so it must be limited to changes in variable costs. It is worth mentioning that the Short Term is not a defined period of time, but depends on each company, industry or economic variable.

One of the most important bases of the meaning of Short Term is that companies have fixed and variable costs. For example, some common expenses, wages and prices are fixed costs, so they cannot change to freedom to reach a new equilibrium.

3 0
3 years ago
Other questions:
  • Which of the following options has drastically reduced the costs of operating and transacting on a global​ scale?
    7·1 answer
  • Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses
    15·1 answer
  • Although many people believe that the only academic path after high school is a college degree if you want to get a good job, th
    9·2 answers
  • The economy is growing far too quickly, as high aggregate demand is causing inflation. a. What fiscal policy should be pursued i
    14·1 answer
  • Because customers have different needs and expectations, the key to distributive fairness in service recovery is
    10·1 answer
  • Troy will receive $7,500 at the end of Year 2. At the end of the following two years, he will receive $9,000 and $12,500, respec
    14·2 answers
  • g The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect
    13·1 answer
  • What does it mean if your net assets increase
    12·2 answers
  • What happens in the labor market when the following event occurs?
    10·1 answer
  • Employers who require the use of personal mobile devices in the workplace must also reimburse their employees for cellular voice
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!