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yan [13]
3 years ago
9

A major lottery advertises that it pays the winner $10 million. However, this prize money is paid at the rate of $ 500,000 each

year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize at 10% annual interest?
Business
1 answer:
My name is Ann [436]3 years ago
8 0

Answer:

We have to discount these payments to find the present value

500,000

500,000/1.1

500,000/1.1^2

500,000/1.1^3

We keep on doing this until we reach 500,000/1.1^19

After that we add all the payments and get the value. A less time consuming way of doing it is using a financial calculator

Pv=?

N=19

FV=0

PMT=500,000

=4,182,460.05 we add 500,000 to this because the first payment was not discounted=4,682,460.05= Present Value.

Explanation:

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scooby doo????

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Bruce, a buyer, contracted with Steve, a seller, to buy ten dozen bicycle tires for $960. Payment was due thirty days after deli
umka2103 [35]

Answer:

b. Hold the tires with reasonable care for disposition as the seller instructs.

Explanation:

When goods are non-conforming to contract, the buyer has the right to reject the goods. The seller also has the right to cure the defect or ensure conformity.

1. Buyer's right to reject: In this case the buyer has the right to reject the goods on inspection, and notify the seller within a reasonable amount of time.

2. Seller's right to cure: The seller has the right to cure defect on the goods, and this can be done where there is still time to rectify the defects noticed by the buyer. In this case, the buyer is not due to pay for the goods for the next 30 days.

The seller still has the opportunity to meet the contract standard and close the deal.

So option b is correct. The buyer holds the goods pending decision of seller to either cure defects on goods or retrieve the goods.

7 0
3 years ago
Phildell Phoenix is paid monthly. For the month of January of the current year, he earned a total of $8,288. The FICA tax rate f
AysviL [449]

Answer:

Total deduction                               2,443.21

Explanation:

8,288

x 6.20% Sccial Security                      513.856

x 1.45% Medicate                                120.176

x 6.20% FUTA&SUTA  (for 7,000)       434              

Income tax witheld                           1,375.17

Total deduction                               2,443.21

We will multiply his taxable wages for period by the tax rate.

We must noticew FUTA and SUTA applies fdor the first 7,000 only so we multiply by 7,000 not by 8,288

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3 years ago
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Answer:

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Number of kits required to be sold to meet the goal = Total Contribution Margin Required ÷ Contribution Margin per Unit

where,

Total contribution margin required is

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= $250,000 + $90,000

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Contribution Margin per Unit = Selling Price per Unit - Variable Cost per unit

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