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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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Which type of private security personnel provides the given service?
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Answer:

Private security guards provide security for people and facilities. They typically deal with issues related to trespassing, burglary, theft, or threats to their clients.

Explanation:

8 0
3 years ago
Assuming all APRs equal, the effective interest rate on a loan is highest when:
arlik [135]

Answer:

Points are charged and the loan has a 30 year maturity but prepaid in five years

Explanation:

When you purchase points to lower your monthly mortgage payments, the bank (or lender) sell them calculating a 30 year payment schedule. If you pay the loan in a shorter period, it means that the points were sold at a very high price o you actually end up paying higher effective interest rate. That without even considering any possible prepayment penalties. But sometimes knowing that your mortgage is paid lowers your stress and it may be worth it from a personal (not financial) point of view.

5 0
4 years ago
Given that Jacob's Chocolates Company had beginning retained earnings of $4,000; net income during the period of $10,000; and di
natta225 [31]

Answer:

C. $13,700

Explanation:

Given that;

Beginning retained earnings = $4,000

Net income during the period = $10,000

Dividends = $300

Computation of Ending balance in the retained earnings account

= Beginning retained earnings + Net income during the period - Dividends

= $4,000 + $10,000 - $300

= $13,700

Therefore, the ending balance in the retained earnings account is $13,700

5 0
3 years ago
What is consumer behaviour?​
xz_007 [3.2K]

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7 0
3 years ago
National business machines manufactures x model a fax machines and y model b fax machines. each model a costs $100 to make, and
IrinaK [193]
<span>Profit needs to be maximized.
Profit = 30x+45y where x and y are respectively the number of model A and model B fax machines manufactured.

Objective function:
max(30x+45y)

 Constraints:
x≥0 ---------------(1)
y≥0 ---------------(2)
x+y ≤ 2500 since the demand is capped at 2500 -----------(3) 100x+150y≤600000 since manufacturing costs cannot exceed $600000-----(4)

 Solve the following two equations to identify where the two boundary lines (3) and (4) intersect.
x+y=2500-----(3)
100x+150y=600000---(4)

Multiplying (3) by 100
100x+100y=250000----(5)
(5)-(4)
50y=350000
y=7000
x=-4500

since the constraint states that x≥0, only three vertices are considered viz (0,0), (0,2500),(2500,0).

applying the profit function at each of the three vertices:
(0,0) ----- 30(0)+45(0) = 0
(0,2500) ---- 30(0)+45(2500)=112500
(2500,0) ---- 30(2500)+45(0)=75000

Hence by applying the max function, x=0, y=2500.
i.e. Dont produce any 'a' model machine. Manufacture 2500 units of model 'b' to maximise profit</span>
5 0
4 years ago
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