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anygoal [31]
4 years ago
11

A lottery claims its grand prize is $10 million, payable over 20 years at $500,000 per year. If the first payment is made immedi

ately, what is this grand prize really worth? Use an interest rate of 6%. Show work
Business
1 answer:
Ronch [10]4 years ago
7 0

Answer:

Answer is $6,079,058.25

Explanation:

This is a simple present value problem.

Present value of annuity shows the worth of annual payments which is present.

As per the given statement, grand prize of lottery is $10 million. This is payable over 20 years at $500,000 per year. The interest rate is 6%.

To find the real worth of the grand prize, each $5 million payment must be "brought back" to their current value at a 6% per year rate.

N = 20; PMT = 500,000; FV = 0 ; I = 6% ; Payments in BEGIN mode.

PV= Cash flow/ (1+rate of return) to the power n

PV will be addedc exponential power 20 times giving answer as $6,079,058.25

Hence, PV = $6,079,058.25

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About ____ percent of worldwide stocks of tuna, cod, and other large ocean fishes have disappeared in the last 50 years.
ehidna [41]

About ninety percent of worldwide stocks of tuna, cod, and other large ocean fishes have disappeared in the last 50 years.

Despite being present in every ocean in the world, tuna and other fishes have started disappearing. The North Atlantic, South Atlantic, as well as the Mediterranean Sea, have the worst conditions for the majority of fish species.

Bluefin, albacore, and yellowfin tuna stocks have drastically decreased as a result of years of overfishing for American and European markets. Although the Atlantic fisheries is heavily regulated, illegal fishing off the shore of coastal seas persists, particularly close to Africa, where impoverished nations cannot afford the patrols required to execute the law.

However, tuna populations cod and other large fish oceans  are declining even in the world's largest oceans, and some face extinction due to the continuous pressure of intensive commercial fishing.

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8 0
2 years ago
The marketing department, finance department, human resources department, and information systems department all operate at the
Nastasia [14]

The marketing department, finance department, human resources

department all operate at the functional level of an organization.

<h3>What is Functional level?</h3>

This level determines the daily operations of the various departments in

an organization. Examples include:

  • Strategy
  • Marketing
  • Finance
  • Human Resources

They are involved in execution of strategies which is why functional level

is the most appropriate choice.

Read more about Functional level here brainly.com/question/26287826

4 0
2 years ago
The general willingness of consumers to purchase a product at various prices is __________.
Wittaler [7]
Demand.

If you found this especially helpful, I'd appreciate if you'd vote me Brainliest for your answer. I want to be able to assist more users one-on-one, as well as to move up in rank! :)
4 0
3 years ago
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus
Ira Lisetskai [31]

Answer:

C) $4,000

Explanation:

To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

where:

  • accounting profit = total revenue - accounting cost = $50,000
  • implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000

economic profit = $50,000 - $46,000 = $4,000

3 0
3 years ago
If there is no written designated agency relationship, a client of Meramac Realty has what kind of relationship with Meramac
LuckyWell [14K]

Answer: c. A nonagency relationship with everyone in the office.

Explanation:

For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty.

With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac.

5 0
3 years ago
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