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SOVA2 [1]
3 years ago
14

Jose wants to cash in his winning lottery ticket. He can either receive seven, $2,000 annual payments starting today, or he can

receive one lump-sum payment today based on a 3% annual interest rate. What would be the lump-sum payment
Business
1 answer:
maxonik [38]3 years ago
8 0

Answer:

Hence the Lumpo-sum Payment is $12834.38(Approx).

Explanation:  

Present value of annuity due= (1+interest rate)*Annuity[1-(1+interest rate)^-time                                                                    

                                                                                           period]/rate

                                               = (1+0.03) x 2000 [1-(1+0.03)^ -7] / 0.03  

                                               =1.03\times 2000[1-(1.03)^{-7} ]/0.03\\=2060 \times 6.23\\=$12834.38(Approx).

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Answer:

What?

Explanation:

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2 years ago
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A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the follo
vova2212 [387]

Answer: The options are given below:

A. $18.00

B. $1,036.80

C. $2.00

D. $7.20

E. $64.00

The correct option is D. $7.20

Explanation:

From the question above, we were given:

Annual demand = 100,000 units

Production = 4 hour cycle

d = 400 per day (250 days per year)

p = 4000 units per day

H = $40 per unit per year

Q = 200

We will be using the EPQ or Q formula to calculate the cost setup, thus:

Q = √(2Ds/H) . √(p/(p-d)

200=√(2x400x250s/40 . √(4000/(4000-400)

200=√5,000s . √1.11

By squaring both sides, we have:

40,000=5,550s

s=40,000/5,550

s=7.20

4 0
3 years ago
With the recent surge in the showing of commercials to movie theater audiences, many companies have found it to be an innovative
inysia [295]

Answer:

Self selection.

Explanation:

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.

Advertisement refers to the promotional multimedia messages designed and developed to make the products or services of a company known to its customers and potential customers.

In this scenario, advertising relies on self selection.

5 0
3 years ago
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of ch
IgorC [24]

Answer:

price level fall and value of money is rises

Explanation:

given data

one year basket costs =  $10.00

two year two basket costs =  $9.00

one year buy baskets = $50

year two,buy baskets = $50

to find out

as the price level falls, the value of money  will be

solution

we see that when we compare to 1 year price go down from $10 to $ 9

so deflation at annual rate is \frac{10-9}{10} = 10%

so here

sum of $50 will be buy here = \frac{50}{10} = $5 in one year

and $ 50 buy in 2 year is = \frac{50}{9} = $5.56 in two year

so this is show here that price level fall and value of money is rises

4 0
3 years ago
BlendIn, Inc. manufactures covers for blenders and toaster ovens. Because its product lines are similar, BlendIn can produce mos
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I’m pretty sure the answer is B $147,400
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