1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
14

You have just received notification that you have won the $2.04 million first prize in the Centennial Lottery. However, the priz

e will be awarded on your 100th birthday (assuming you’re around to collect), 76 years from now. What is the present value of your windfall if the appropriate discount rate is 9 percent? (Enter your answer in dollars, not millions, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $
Business
1 answer:
blsea [12.9K]3 years ago
7 0

Answer:

Present value is $2918.88

Explanation:

Given Data:

Amount won=$2,040,000

Number of years=76 years

Interest rate=i=9%=0.09

Required:

Present value=?

Solution:

Formula

FV=PV(1+i)^n

Where:

FV is the future value=$2,040,000

PV is the present value

i is the interest rate=0.09

n is the number of years=76

PV=\frac{FV}{(1+i)^n}\\ PV=\frac{\$2040000}{(1+0.09)^{76}}\\ PV=\$2918.88

Present value is $2918.88

You might be interested in
IE 9-3 ... AS/AD Model – Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the
11111nata11111 [884]

Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the RIGHT shifting AD caused by increased "G" spending . If the Price Level increases to $2.34, then Real Production GDP will have increased to $5200 b and 2 million people will have gained jobs. In the Business Cycle the economy will have moved from Point "x" toward Point y.

Explanation:

The AD-AS model (Aggregate production aggregate) demonstrates national income calculation and price level adjustments.

This shows how various events will change in two of our major macroeconomic indicators: Actual GDP and inflation.

  • Label all equilibrium in the axis, the interior
  • The positioning of LRAS provides important economic information, for example, if the efficiency of balance is on the left side of the LRAS, the economy is in recession.
4 0
3 years ago
The ________ is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in
Sveta_85 [38]

Answer:

Income inequality ratio

Explanation:

The income inequality ratio is an incomplete picture because a single number cannot fully reflect the sources of the underlying differences in income.

Income inequality refers to the uneven distribution of income among the population of a particular place. It is the difference in the allocation of income in a particular country.

Income inequality occurs across different segments of the population such as gender(male and female), ethnic group, occupation, geographical location etc.

The Gini index is widely used to compare disparities in income.

6 0
3 years ago
A banker's acceptance A. is a draft drawn on a bank and paid by that bank when presented to it. B. may be accepted by the bank f
bulgar [2K]

Answer: Option (D) is correct.

Explanation:

A banker's acceptance is an instrument that represents the promised payment by the bank in the future. This payment is accepted as a time draft by the bank and is to be drawn on a particular deposit. This draft is having all the information that is related to the future payment amount, date of the payment and the party to which the payment to be made. This acceptance can also be traded until the date of maturity.

3 0
3 years ago
Assume again that the cost of capital is 7 percent and the effective tax rate is 40 percent. How would the payback, internal rat
vfiekz [6]

Answer:

If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.

4 0
3 years ago
Economic systems differ according to which two main characteristics?
nikitadnepr [17]

Answer:

A.

Explanation:

Economic systems refers to the different ways in which a government moves and distributes the resources that the country needs, including labor, capital, entrepreneurs, physical resources and information resources. That being said the two main characteristics that explains how they differ would be who owns the factors of production which are the 5 stated above, and the methods used to coordinate economic activity.

4 0
2 years ago
Other questions:
  • An art director is an an example of?
    15·2 answers
  • Albert was wanting to save some money on his vacation, so he brought food and soft drinks with him to the airport to eat on the
    12·1 answer
  • If the budget of a valley glacier were balanced for an extended time span, what feature would you expect to find at the terminus
    11·1 answer
  • You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What i
    15·2 answers
  • When sport leagues do not expand into a market that can support a franchise, or when they create rules to limit the movement of
    13·1 answer
  • Conciseness and clarity are what count in business.
    9·1 answer
  • IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value or the company can buy the
    11·1 answer
  • What kind of business can you start without start up capital?​
    9·1 answer
  • Raleigh BBQ has $48,000 in current assets and $39,000 in current liabilities. Decisions related to these accounts are referred t
    5·1 answer
  • free training programs allow manufacturers to: select one: a. explain complex products to retailers. b. build relationships with
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!