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dsp73
3 years ago
8

A state's lottery winner is promised $200,000 a year for twenty years (starting at the end of the first year). How much must the

state invest now to guarantee the prize if the state can earn annually 7 percent on its funds? How much must the state invest if the annual payments were made at the beginning of the year?
Business
1 answer:
Sophie [7]3 years ago
6 0

Answer and Explanation:

The computation is shown below:

The amount that should be invested in the case when it earns 7% on its funds is

Investment = pv(7%,20,200000,0,0)

= $2,118,802.85

ANd, the amount that should be invested at the starting of the year is

= pv(7%,20,200000,0,1)

= $2,267,119.05

The same should be considered

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5 0
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Why is it critically important to develop and implement sustainable management approaches for grand banks fisheries?
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3 years ago
The WRT Corporation makes collections on sales according to the following schedule:
Mekhanik [1.2K]

Answer:

Total cash collection June= $98,500

Explanation:

Giving the following information:

25% in month of sale

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5% uncollectible

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Sales

April $120,000

May $100,000

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Cash collection from June= 110,000*0.25= 27,500

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8 0
3 years ago
When eight to ten potential customers are asked for feedback on a good or service, advertisement, idea, or packaging by a compan
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Answer: (B) Focus group

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Therefore, option (B) is correct.  

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3 years ago
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4 years ago
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