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
Slav-nsk [51]
4 years ago
5

Svetlana won $1,000,000 in a contest, to be paid in twenty $50,000 payments at yearly intervals, the first payment paid at the t

ime of the contest. (Of course, the present value of her winnings is less than $1,000,000.) Svetlana decided to keep X each year to spend and deposit the remaining $50;000 X into an account earning an annual effective interest rate of 5%. She chose the value X to be as large as possible so that, at the moment of the 20th deposit, the account would have grown to such a size that it would provide Svetlana and her heirs at least X per year in interest forever. Find X.
Business
1 answer:
goldfiish [28.3K]4 years ago
7 0

Answer: 31155.5

Explanation:

The following can be deduced from the question:

Money won = $1,000,000

Installments made yearly = $50,000

Interest rate = 5%

The yearly deposits made by Svetalana will be: = 500000-x

The future Value of the yearly deposits made by Svetalana will be:

= (50000-x) × (1/(1.05) + (1/(1.05)^2 .....(1/(1+0.05)^20))

= (500000-x) × 33.066

We should recall that the interest from the question is equated to x. This will be:

33.066 × (50000-x) × 0.05 =x

1.6533(50000 - x) = x

82665 - 1.6533x = x

2.6533x = 82665

x = 82665/2.6533

x = 31155.5

You might be interested in
The marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of goo
tensa zangetsu [6.8K]

Answer:

B. business marketing

Explanation:

Business marketing -

It is the practice in the marketing by the company or by an individual , it enables to sell the services or goods to some other organisations or company that can resell them , which can be also be used by the company to create a new product or service or to re - sell it as it is , is known as business marketing .

Hence , from the question ,

The correct term according to the given information of the question is B. business marketing .  

8 0
3 years ago
Refer to exhibit 4-5. if a free market were allowed in the transplanted kidney market, then the equilibrium price would be p2. t
Paladinen [302]

Answer: (q2 - q1).

Explanation:

A free market is an economic system whereby production of goods and services are being regulated by demand and supply forces. In this economic system, it should be noted that there's little or no intervention from the government.

If a free market were allowed in the transplanted kidney market, then the equilibrium price would be p2. The number of kidneys transplanted would increase by (Q2-Q1) compared to the number transplanted at a price ceiling of p= $0.

5 0
3 years ago
What impact would the fed's raising the interest rate have on any inflationary pressure in the economy?
Licemer1 [7]

People will eventually start cutting back on their spending since increased interest rates result in greater borrowing costs. Then, when the demand for goods and services declines, so does inflation.

Interest and other expenses incurred by an entity in conjunction with borrowing money are referred to as borrowing costs. An asset that requires a significant amount of time to prepare for use or sale qualifies as a qualifying asset.

A qualifying asset's cost includes borrowing expenses that are directly related to its purchase, construction, or production. The expense of other borrowing costs is recognized.

The fundamental tenet of IAS 23 Borrowing Costs is that if borrowing costs can be directly linked to the purchase, development, or production of a qualifying asset, they should be capitalized. Additional borrowing expenses are deducted from profit or loss.

Learn more about borrowing costs here

brainly.com/question/3896224

#SPJ4

8 0
2 years ago
Martha was promised a 10% raise if she wins a contract with the city government. Martha could use the money to pay off some debt
Vlad1618 [11]

Answer:

The answer is expectancy.

Explanation:

Expectancy theory is a concept developed by Victor H. Vroom in 1964, where he postulated, that the strength an individual has in terms of his or her motivation to do an action, would appear when three components are satisfied to a certain value: expectancy, instrumentality, and valence. The question above is relevant to the expectancy component, which is detailed as the belief that an individual has regarding their efforts would result in the individual choosing to perform an action. In the case of Martha, she wasn’t sure that her efforts in trying to win the contract would lead to her 10% raise (outcome, a component of instrumentality), and thus, she decided not to try.  

3 0
3 years ago
Now replay the animation but focus on the orange arrows. what occurs every time an orange arrow is released?
pav-90 [236]

Now replay the animation but awareness of the orange arrows' strength that happens each time an orange arrow is launched.

Animation is a method in which figures are manipulated to appear as moving photos. In traditional animation, pix are drawn or painted by way of hand on transparent celluloid sheets to be photographed and exhibited on film. today, maximum animations are made with computer-generated imagery (CGI).

Animation facilitates deepen visible understanding better than traditional diagrams. Animation omits pointless verbiage and visuals. It permits you to talk thoughts quickly and sharply. Animation is a value-saving conversation strategy.

Animation works by means of the use of an optical phantasm. By offering a series of nevertheless images in brief enough succession, the viewer interprets them as a non-stop transferring image. this is the identical principle that permits live motion filmmaking and projection to paintings.

Learn more about Animation here: brainly.com/question/18260878

#SPJ4

6 0
2 years ago
Other questions:
  • Mitchell Florists reported assets of $1,400 and equity of $350. What is its debt ratio? (Round your percentage answer to two dec
    15·1 answer
  • . Homer Simpson wins a lottery prize. As a result, the Simpson family increases its consumption by $1,000 at each level of after
    12·1 answer
  • Guo Company has stockholders’ equity of $400,000 and net income of $66,000. It has a payout ratio of 20% and a return on assets
    7·1 answer
  • If education produces positive externalities, we would expect:
    6·1 answer
  • For human resource practices to be considered ethical, they must result in the greatest good for the largest number of people. T
    5·1 answer
  • An entity enters into a contract with a customer to sell products X, Y, and Z in exchange for $250,000. Control over the product
    14·1 answer
  • Roll over the items and match the examples to the sales promotion type. also match the advantages and disadvantages to each sale
    6·1 answer
  • What is your stand regarding the statement managers are born not made?
    12·1 answer
  • True or False: Because the economy is producing at a point that is on the PPF, the point must represent a combination consisting
    8·1 answer
  • Over the years, the united states government has intervened in latin america on behalf of us business and __________ interests.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!