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jenyasd209 [6]
3 years ago
13

Shelley wants to cash in her winning lottery ticket. She can either receive fourteen, $188,000 semiannual payments starting toda

y, or she can receive a single-amount payment today based on a 6% annual interest rate. What is the single-amount payment she can receive today
Business
1 answer:
velikii [3]3 years ago
4 0

Answer:

$2,123,661.75

Explanation:

We are to find the present value of the payments

but first we are to determine the future value of the payments

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1  

R = interest rate = 6% / 2 = 3%

N = number of years = 14

(1.03^14 - 1 ) / 0.03 = 17.086324

$188,000 x 17.086324 = $3,212,228.94

Present value = future value(1 + r ) ^-N

$3,212,228.94(1.03)^-14 = $2,123,661.75

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The assumption that is necessary for a linear programming model to be appropriate and that ensures that the value of the objecti
Elan Coil [88]

Answer:

A. Additivity

Explanation:

Additivity simply means that the values of an objective function and total resources used can be found by adding all the contributions made by the objective functions and the decision variables of all resources used. That is, it assumes that the overall of an objective function is found by adding the contribution of each objective function to the overall. In additivity, interaction between variables doesnt exist.

5 0
3 years ago
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Elaine is a secretary for a business. One day a customer comes in to file a new contract while Elaine is seated at her boss’s de
slega [8]

Answer:

The answer is c:

Enforceable via employee agent

Explanation:

The definition of agency law deals with agent-principal relationships; that is a relationship where one party has the legal authority to act in place of another. Relationships that are commonly associated with agency law include employer-employee, administrator-decedent or executor, and guardian-ward.

Agreements that result in the formation of agency-type relationships can be implied or express, and both the principal and the agent can be an entity (such as partnership or corporation) or individual.

Here in the given situation, since, Elaine is an employee of the business and knowledgeable enough to deal with the contract filing, it is implied that she is acting as an employee agent, that she can help the customer in filing the contract.

6 0
3 years ago
Price elasticity of demand measures Select one: A. how responsive sales are to changes in the price of a related good. B. how re
Setler79 [48]

Answer:

B

Explanation:

Elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to change in the price of the commodity.

It is of 3 types

1. Price elasticity of demand

2. Income elasticity of demand

3. Cross elasticity of demand

6 0
4 years ago
Read 2 more answers
etermining Gross Profit During the current year, merchandise is sold for $990,000. The cost of the merchandise sold is $693,000.
otez555 [7]

Answer:

Results are below.

Explanation:

<u>A: To calculate the gross profit, we need to use the following formula:</u>

Gross profit= sales - cost of goods sold

Gross profit= 990,000 - 693,000

Gross profit= $297,000

B: <u>Now, the gross profit percentage:</u>

Gross profit percentage= (gross profit / sales)*100

Gross profit percentage= (297,000 / 990,000)*100

Gross profit percentage= 30%

C: F<u>inally, a net income is reported in the income statement at the moment of the sale</u>. It doesn't matter if the sale was paid or not.

6 0
3 years ago
E20.5 (LO 3) (Application of Years-of-Service Method) Andrews Company has five employees participating in its defined benefit pe
GuDViN [60]

<u>Solution and Explanation:</u>

<u>Computation of service years </u>

Year  Jim  Paul  Nancy  Dave  Kathy  Total  *  Cost  Amortization

2014  1  1  1  1  1  5            *  3000     15000

2015  1  1  1  1  1  5             *  3000  15000

2016  1  1  1  1  1  5            *  3000  15000

2017   1  1  1  1  4            *  3000  12000

2018    1  1  1  3             *  3000  9000

2019     1  1  2              *  3000  6000

                               72000

<u>Future years of service </u>        

Jim         3          

Paul  4          

Nancy  5          

Dave  6          

Kathy  6          

       24          

cost per service year $=\$ 72000 / 24=\$ 3000$

8 0
3 years ago
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