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emmainna [20.7K]
3 years ago
6

You just won a state lottery! The lottery offers you a choice: you may choose a lump sum today, or $89 million in 26 equal annua

l installments at the end of each year. Assume the funds can be invested (yield) at an annual rate of 7.65%. What is the lump sum that would equal the present value of the annual installments
Business
1 answer:
deff fn [24]3 years ago
7 0

Answer:

the lump sum that would equal the present value of the annual installments is $38,163,612

Explanation:

The computation of the lumspum amount is as follows;

= Cash flow × (1 - (1 + rate of interest)^-number of years) ÷ rate of interest)

= $89 million × (1 - (1 + 0.0765)^-26) ÷ 0.0765)

= $38,163,612

Hence, the lump sum that would equal the present value of the annual installments is $38,163,612

Therefore the above is calculated by applying the given formula

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In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0
3 years ago
________ distribution is a product distribution strategy that involves stocking the products in as many outlets as possible.
djyliett [7]

Answer:

The answer is intensive distribution strategy.

Explanation:

Intensive distribution strategy occurs when a company tries to sell their products through as many outlets as possible, thus ensuring that customers will encounter the company’s products in various distributor points. It is generally done to increase sales of products. Companies that would use this type of strategy are typically those that are competing in a perfect competition market, since product unavailability would just make customers of the product use a different brand from a competitor’s company instead.

6 0
3 years ago
_______________is concerned with what is​, and ▼ positive analysis neutral analysis normative analysis is concerned with what ou
EastWind [94]

Answer:

The correct answer is normative analysis.

Explanation:

A positive analysis is the one that attempts to reflect reality with statements of cause and effect and is used mainly in microeconomics. On the other hand, a normative analysis, in which reality is prescribed, that is, we go beyond explanation and prediction, value judgments are used.

In contrast to the positive analysis, the normative analysis responds how the law should achieve efficiency objectives. This analysis assumes that efficiency is an objective that law should reflect and that legal norms should change when they fail. From this perspective, efficiency is a social value that the Law should promote.

3 0
3 years ago
For this question, assume that the Phillips curve equation is represented by the following: πt − πt−1 = (m + z) − αut. Which of
likoan [24]

Answer:

Correct option is C

Explanation:

Increase in \alpha decreases πt - π(t-1) which shows decrease in natural rate of unemployment.

Phillips bend clarifies the connection between expansion rate and joblessness rate. As indicated by it there is a reverse connection between the joblessness rate and swelling rate. It implies there is an exchange off among expansion and joblessness rate.  

The strategy ramifications of Phillips bend is that administration can't lessen swelling and joblessness together. It joblessness decreases, at that point the economy must acknowledge higher expansion. Then again, on the off chance that economy lessens expansion, at that point it must acknowledge higher joblessness.  

When there is synchronous change in the swelling rate and joblessness rate then this is an instance of development along the short-run Phillips bend.  

Then again, when either joblessness rate or swelling rate stays unaltered while different changes then it prompts moving of short-run Phillips bend.

3 0
3 years ago
The level at which individual is viewed by Society is called​
tatiyna

Answer:

The level at which an individual is viewed by society is called Social Status. ... It is the measure of worth or the position that the 'person holds in society'.

Explanation:

I hope this helps and pls mark me brainliest :)

5 0
3 years ago
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