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Zanzabum
3 years ago
9

Present value computation kerry bales won the state lottery and was given four choices for receiving her winnings. receive $400,

000 right now. receive $432,000 in one year. receive $40,000 at the end of each year for 20 years. receive $36,000 at the end of each year for 30 years. assuming kerry can earn interest of 8% compounded annually, which option should kerry choose?
Business
1 answer:
Mekhanik [1.2K]3 years ago
4 0
Option 1: PV = $400,000
Option 2: Receive (FV) $432,000 in one year

PV = FV(1/(1+i)^n), where i= 8% = 0.08, n = 1 year

PV = 432,000(1/(1+0.08)^1) = $400,000

Option 3: Receive (A) $40,000 each year fro 20 years

PV= A{[1-(1+i)^-n]/i} where, n = 20 years

PV = 40,000{[1-(1+0.08)^-20]/0.08} = $392,725.90

Option 4: Receive (A) $36,000 each year from 30 years
PV = 36,000{[1-(1+0.08)^-30]/0.08} = $405,280.20

On the basis of present value computations above, option 4 is the best option for Kerry Blales. This option has the highest present value of $405,280.20

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Write a two page essay on politics (also this is for glassaqt)
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Answer:

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source of living, especially for the countries that are still in the process of developing. Tsarist

Russia failed to have peaceful relations with its citizens due to their unsuccessful agrarian law.

Bolsheviks planned to avoid such mistakes.

Making a change to the agrarian law was very important to not only the Bolsheviks but to the

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Russia’s economy and brought instability and chaos to the country. The new Russian state

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working class and peasants was necessary if the crippled Bolshevik state was going to strive,

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be passed on to the lower class in the form of state collective farms.

The previous government failed to address the agrarian question and what the Bolsheviks

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millions of smallholdings while the Bolsheviks trusted in collective farms worked on by the lower

class on behalf of the population. Lenin knew that if his Revolutions was going to live for a long

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In Georgia, on the other hand, there had been the usage of an ambitious, and mainly practical,

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Hope this helps! Have a nice day!

3 0
3 years ago
Read 2 more answers
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Answer:

Dr Retained earnings  $6,200

Cr Dividends payable               $6,200

Explanation:

The shares entitled to dividends payment are those outstanding as at when dividends were declared,that is those shares in issue as at the date of dividend declaration,in essence only the outstanding shares of  12,400 are entitled to dividend payment of $0.50 per share.

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3 years ago
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Answer:

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We know that

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Answer:

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