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stira [4]
4 years ago
15

Jose wants to cash in his winning lottery ticket. He can either receive five $5,000 annual payments starting today, or he can re

ceive a lump-sum payment now based on a 3% annual interest rate. What would be the lump-sum payment?
Business
1 answer:
ExtremeBDS [4]4 years ago
7 0

Answer:

The lump sum payment =  $23,585.49

                                 

Explanation:

The winning lottery is an example of an advanced annuity. <em>An advanced annuity is a series of cash flows that occurs for a certain number of years with the first cash flow occurring now.</em>

The first cash flow is represents one out of the five, so the balance is a four-year annuity.

So we can work out the present value of the annuity for the last four years as follows:

PV = (1 - (1+r)^(-n)/r )   ×  Annual cash flow

r = 3%=0.03, n = 4, Annual cash flow = 5000

PV = (1- ((1+0.03)^(-4))/0.03)  × 5,000

    = 3.7170 × 5,000

   =$ 18,585.49

The lump sum payment = PV of the first payment + PV of the four year annuity

The lump sum payment = $5000 + $ 18,585.49

                                       =  $23,585.49

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Information for Kent Corp. for the year 2021:
Inessa05 [86]

Answer:

$5,082

Explanation:

Calculation of the balance in Kent's deferred tax liability account as of December 31, 2021

Using this formula

Deferred tax liability balance =Cumulative future taxable amounts*Enacted tax rate

Where,

2021 Cumulative future taxable amounts =$24,200

Enacted tax rate=21%

Let plug in the formula

Deferred tax liability balance =$24,200*21%

Deferred tax liability balance =$5,082

Therefore the balance in Kent's deferred tax liability account as of December 31, 2021 will be $5,082

6 0
3 years ago
Which of the following statements describes the relationship between employee training and employee development?
nata0808 [166]

Answer: Training is short-term skills oriented while development is long-term career oriented.

Explanation:

The statement that best describes the relationship between employee training and development, from the available options in the question is:

Training is short-term skills oriented while development is long-term career oriented.

This statement is true because, trainings cover a short period of time, aimed at improving the employees expertise on a particular area while development is a long term activity, which monitors the employee's growth and improvements in different aspects of their job delivery.

8 0
3 years ago
Willis Rusch recently purchased a 5-pound box of treats for his dog. The total purchase price was $4.87.What was the price per p
krek1111 [17]

Answer

The cost of the one pound of the box is $0.974.

Explanation:

As given

Willis Rusch recently purchased a 5-pound box of treats for his dog.

The total purchase price was $4.87 .

i.e

Cost of 5- pound box = $4.87

Thus

Price\ per\ pound = \frac{Total\ cost\ of\ 5\ pound\ box}{Total\ box}

Putting the values in the above

Price\ per\ pound = \frac{\$ 4.87}{5}

                                     = $ 0.974

Therefore the cost of the one pound of the bos is $0.974.

8 0
3 years ago
Economies of scale can arise from: Group of answer choices High prices on bulk purchases of raw material inputs and component pa
Alex787 [66]

Answer:

An advantage gained by spreading fixed production costs over a large production volume.

Explanation:

Economies of scales refer to that scale where the larger quantity of an output having similar level fo fixed cost cause in less cost per unit. It could be occured from an advantage that could be benefit by distributing the fixed production cost over and above to the wider production volume

Therefore the above statement should be considered

8 0
3 years ago
"Although experience and expertise are important in the hiring decision, many employers are looking at other attributes to decid
kakasveta [241]

Answer:

"Choose a previous employer, and describe your greatest contribution to the company." Prepare for an Interview: This is a common question asked in interviews.

Explanation:

3 0
3 years ago
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