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Ksju [112]
4 years ago
8

You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w

ill be awarded on your 100th birthday (assuming you’re around to collect), 66 years from now.
What is the present value of your windfall if the appropriate discount rate is 10 percent?

PV = $__________________________
Business
1 answer:
son4ous [18]4 years ago
8 0

Answer:

The present value of your windfall if the appropriate discount rate is 10 percent is $5,562

Explanation:

Amount of Prize = $3,000,000

number of year = 66 years

Discount Rate = 10%

use following formula to calculate the Present value of Lottery prize

Present Value = Future value / ( 1 + discount rate )^number of years

PV = FV / ( 1 + r )^n

PV = $3,000,000 / ( 1 + 0.10 )^66

PV = $3,000,000 x ( 1 + 0.10 )^-66

PV = $3,000,000 x ( 1.10 )^-66

PV = $5,561.65

PV = $5,562

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K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $45,000 of personal cash to the partnership.
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Answer:

to record Decker's investment:

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3 years ago
TRUE/FALSE one of the attractive features of mutual funds is that they offer small investors a diversified portfolio and profess
Ugo [173]

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<h3>What draws small investors to mutual funds?</h3>

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To know more about mutual funds visit:

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1 year ago
As similar case studies, the cheyenne and the comanche are best depicted as examples of:
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The answer is <span>convergent adaptation
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3 years ago
Jolene has always wanted to work in Physical Therapy. Which career would be the best choice if she wants to get into a job that
artcher [175]

Answer:

A.) Physical Therapist Assistant

Explanation:

Just did on Edge 2020. Hope this helps you and others out.

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3 years ago
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