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mojhsa [17]
3 years ago
7

You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize

will be awarded on your 100th birthday, 70 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings
Business
1 answer:
Arada [10]3 years ago
6 0

Answer:

Present value = $6404.20

Explanation:

Data provided in the question :

Amount of the Centennial lottery prize won = $1.4 million = $1,400,000

Time after which the amount will be received, n = 70 years

Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

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You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fixed rate for exactly one year
natita [175]

Answer:

You will pay back the lender exactly <u>$21,000</u>, which will represent <u>$20,600</u> of purchasing power.

Explanation:

you will pay back the lender exactly $21,000, which will represent $20,600 of purchasing power.

$20,000 for this purchase at a 5 percent fixed rate

=$20,000*5/100

=$20,000*0.05 = $1,000

=$20,000 + $1,000 = $21,000

Inflation will be 2 percent this year

=$20,000*2/100

=$20,000*0.02 = $400

=$20,000 + ($1,000 - $400)

=$20,000 + $600 = $20,600

3 0
3 years ago
Game theory is:A. a strategy that requires cooperation when multiple parties are involved.B. a methodology to accomplish winning
Makovka662 [10]

Answer:

C. the study of strategy and strategic behavior.

Explanation:

Game theory is the study of strategy and strategic behavior. It is assumed that the parties involved are rational. The payoff of a player of a game is determined by the actions of others in the game.

A popular example of game theory is the prisoners dilemma.

A game theory can involve more than two players.

An example of prisoners dilemma:

There are two prisoners - if both confess to a crime, they both get 5 years in prison. If both prisoners don't confess they are set free. If one confess and the other doesn't, the prisoner that confesses 2 years in prison while the other prisoner that didn't confess gets 10 years in prison.

The dominant strategy which is the best option for the prisoner regardless of what the other prisoner does is to confess.

The Nash equilibrium is for both prisoners to defect.

I hope my answer helps you

6 0
3 years ago
What is the most common method of measuring flows of trade?
kakasveta [241]

The most common method to measure flows of trade is the comparison between the exportation of merchandise, services, and the capital of the countries.

<h3>What is trade?</h3>

Trade is the situation where the countries buy (import) from or sell (export) to the countries outside the boundaries of their own territories.

Exports referred to the scenario where one country provides goods and services to another country abroad. The comparison of goods, services, and monetary capital of foreign countries with respect to their own countries can be used as a common method to measure the trade flows.

Therefore, the exporting of goods, services, and capital to other countries is the method to determine trade flows.

Learn more about the trade from the related link:

brainly.com/question/3617318

#SPJ4

4 0
2 years ago
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
kenny6666 [7]

Answer:

Given that,

Petty cash fund on September 1 = $250

Office Supplies = $73

Merchandise inventory = $137

Miscellaneous expenses = $22

Fund has a balance = $18

When Petty Cash fund is reimbursed,

the expenses incurred through Petty Cash are recorded by debiting those expense.

Therefore, all the expenses incurred to be debited from the accounts.

Hence, the journal entry to record the reimbursement of the fund on September 30 includes a debit of Office Supplies for $73.

5 0
3 years ago
She never drink change into how often​
oksano4ka [1.4K]
Nmskkkqkokswkkijnw!!!! Yes
8 0
3 years ago
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