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Degger [83]
2 years ago
7

You are in talks to settle a potential lawsuit. The defendant has offered to make annual payments of $23,000, $29,000, $56,000,

and $84,000 to you each year over the next four years, respectively. All payments will be made at the end of the year. If the appropriate interest rate is 4.5 percent, what is the value of the settlement offer today
Business
1 answer:
taurus [48]2 years ago
7 0

Answer:

$168,078

Explanation:

Calculation for what is the value of the settlement offer today

Value of the settlement offer today= [$23,000 / (1 + 0.045)] + [$29,000 / (1 + 0.045)^2] + [$56,000 / (1 + 0.045)^3] + [$84,000 / (1 + 0.045)^4]

Value of the settlement offer today=$22,010+ $26,556+$49,073+$70,439

Value of the settlement offer today=$168,078

Therefore the value of the settlement offer today will be $168,078

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Answer:

3. embedding culture

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3 years ago
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Ruben, Gerald, and Norma all work for the same company. Gerald and Norma both evaluate the company’s financial picture, but Gera
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2 years ago
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On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0
zysi [14]

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

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The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

∴

Income from the loan = Book value × Effective interest rate × No. of months of the year

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3 0
3 years ago
Economics: A group of competitors who work in unison to control the supply and price of their product is called a
7nadin3 [17]

Answer:

cartel

Explanation:

A "cartel" is a<em> group of competitors or market participants</em> who are independent from each other. They <u>work in unison by cooperating secretly</u> in an <em>unlawful way</em> so they can control the supply and price of their products. In this way, they can dominate the market.

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So, this explains the answer.

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3 years ago
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec
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Answer:

Annual depreciation= $7,996

Explanation:

Giving the following information:

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