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SpyIntel [72]
2 years ago
15

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. W

hat is the present value of this stream of payments if money can earn 7 percent annual interest?
Business
1 answer:
lidiya [134]2 years ago
3 0

Answer:

PV= $529,700.71

Explanation:

Giving the following information:

Cash flow= $50,000

the number of years= 20

Interest rate= 7%

First, we need to calculate the future value of the cash flows. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {50,000*[(1.07^20)-1} / 0.07

FV= $2,049,774.62

Now, we can calculate the present value.

PV= FV/(1+i)^n

PV= 2,049,774.62/1.07^20

PV= $529,700.71

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If 2G Robotics is bought by another firm and Gillham decided to allocate a total of 400 points to employees, and the value of th
Darina [25.2K]

Answer:

The programmer can get $20,250

Explanation:

Take the amount of 300,000 multiple by the point the programmer is worth then divide by the total points for the employees.

300000*27/400= 20250

7 0
3 years ago
A buyer failed to take advantage of the vendor's credit terms of 2/10, n/45, but instead paid the invoice in full at the end of
Neko [114]

Answer: 20.86%

Explanation: From the question, the credit term is 2/10, n/45. Which means that the customer gets a 2% discount if payment is made within 10 days. But the customer did not make use of this offer. The equivalent annual Interest lost on the amount of purchases is :

365/ (45-10) * 0.02 = 365/35*2%

= 0.20857 *100= 20.86%

This is calculated using 365 days in a year.

5 0
3 years ago
You are the hr consultant to a small business with about 40 employees. now the firm offers only 5 days of vacation, 5 paid holid
ollegr [7]

Ask google

So you can get a answer that is related to your question

6 0
2 years ago
An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 un
fgiga [73]

Answer:

B 30 percent

Explanation:

Initial cost of production = (2×$10) + (5×$4) + (8×$3) = $20+$20+$24 = $64

New cost of production = (2×$10) + (5×$8) + (8×$3) = $20+$40+$24 = $84

% rise in cost of production = (new cost - initial cost)/initial cost × 100 = (84 - 64)/64 ×100 = 20/64 × 100 = about 30%

6 0
3 years ago
Andrew and Brianna are married and live in Texas, a community-property state. For their birthdays this year Andrew gave cash gif
Vika [28.1K]

Answer: $2,600

Explanation:

Because Andrew is married, the gift tax on him is split in half between him and his wife. This means that to each of his daughters, the gift tax will be on:

= 20,900 / 2

= $10,450

This amount is less than the gift exclusion limit of $15,000 so Andrew will not be charged taxes on the gifts to his daughters.

On the gift to Brianna's niece, Andrew's gift tax will be based on:

= 35,200 / 2

= $17,600

This is above the gift exclusion limit of $15,000 by:

= 17,600 - 15,000

= $2,600

<em>The above would therefore be Andrew's taxable gift amount. </em>

5 0
3 years ago
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