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kow [346]
3 years ago
11

You are offered an annuity that will pay you $200,000 per year, at the end of the year, for 25 years. The first payment will arr

ive one year from now. The last payment will arrive 25 years from now. Suppose your annual discount rate is i=16.25%. How much are you willing to pay for this annuity? (hint: this is the same as the present value of an annuity.)
Business
1 answer:
maksim [4K]3 years ago
7 0

Answer:

I am willing to pay $1,202,235.89 for this annuity.

Explanation:

Calculate Present value of future cash flow to calculate the price for the annuity should be paid now.

Monthly receipt = PMT = $200,000

Number of years = n = 25 years

Rate of return = r = 16.25% = 0.1625

PV = PMT x [ 1- ( 1 + r )^-n )] / r

PV = $200,000 x [ 1 - ( 1 + 0.1625 )^-25 ) ] / 0.1625

PV = $200,000 x [ 1 - ( 1.1625 )^-25 )] / 0.1625

PV = $1,202,235.89

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rodikova [14]

Answer:

Bill Gates said, "Develop your people to do their jobs better than you can. Transfer your skills to them. This is exciting but it can be threatening to a manager who worries that he is training his replacement. Smart managers like to see their employees increase their responsibilities because it frees the managers to tackle new or undone tasks."

Explanation:

Bill Gates is an American computer pioneer and philanthropist. He is a co-founder of Microsoft, where he was the chairman of the board. He has now left the day-to-day work at Microsoft to work full-time within the Bill & Melinda Gates Foundation. According to Forbes magazine, Gates is the second richest person in the world (after Jeff Bezos) with a fortune of about $105 billion.

7 0
3 years ago
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.75. Michelle was willing to pay up to $6.75 for the c
miv72 [106K]

Answer:

$2

$3.50

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

$6.75 - $4.75 = $2

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Producer surplus = price – least price the seller is willing to accept

$4.75 - $1.25 = $3.5

7 0
2 years ago
The following data values represent the daily amount spent by a family during a summer vacation. find the sample standard deviat
Mama L [17]

The sample standard deviation of this dataset is =19.1.

The Standard deviation is a degree of the amount of variant or dispersion of a set of values. A low widespread deviation indicates that the values tend to be near the mean of the set, at the same time as a high widespread deviation indicates that the values are spread out over a much wider variety.

x x- \bar x=x-101 (x-ˉx)2

96     -5                          25

125     24                        576

80     -21                     441

110     9                          81

75    -26                   676

100      -1                         1

121        20                    400

∑x=707 ∑(x-\bar x)=0 ∑(x-\bar x)2=2200

Mean \bar x =∑x/n

=96+125+80+110+75+100+121/7

=707/7

=101

Sample  standard deviation S=√∑(x-\bar x)2/n-1

=√2200/6

=√366.6667

=19.1

Learn more about standard deviation here:-brainly.com/question/475676

#SPJ4

4 0
1 year ago
Which type of life insurance policy combines term insurance and investment elements?
Ne4ueva [31]
To answer the question above as to which type of life insurance policy combines term insurance and investment elements is letter C, Universal Life. Universal Life or in other term Permanent life Insurance is a type of insurance to which is flexible low-cost protection and term life insurance as well as the saving elements like the whole life insurance.
6 0
3 years ago
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What to put on a job application for education if still in high school?
almond37 [142]
You could put that you are still in high school and working towards your high school diploma. 
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