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
frez [133]
3 years ago
5

You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immedia

tely. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly interest compounding. What is the present value of the payments you will receive?
Business
1 answer:
Umnica [9.8K]3 years ago
6 0
Total amount won in a lottery, P = $11,000,000
Yearly payments, C = 11,000,000/26 = $423,076.92
The payments will be done at start of every year.

With monthly compounding;

PV = C{(1-R/12)^-25*12)/R/12)+(1+R/2), where R = Interest rate = 9% = 0.09

Therefore,
PV = 423076.92*{(1-(1+0.09/12)^-12*25)/0.09/12}+(1+0.09/12) = $51,310,701.95

Therefore, the present value will be more if the amount is invested.
You might be interested in
When joshua proposed​ cross-training his employees so absences and vacations would not pose such a problem in​ productivity, his
natulia [17]

Answer:

a. fear that they would be forced out of their habits

Explanation:

In as much as the aim is for absences and vacations not to pose a problem in​ productivity, Joshua's employees still objected because they might one day be told not to go on vacations and not even be absent from work. Thus, this becomes a problem for them.

Therefore the fear that they would be forced out of their habits sets in and they object the proposal.

5 0
3 years ago
Read 2 more answers
In the context of skills of successful managers, making sacrifices to encourage and promote desired outcomes in an organization
Zielflug [23.3K]

Answer: monitoring operation

Explanation:

Monitoring operations requires management oversight, employee feedback and customer reviews. It can help provide specific directions for employees, which can lead to improved time management and increased productivity.

4 0
4 years ago
Toyota motor corporation executives were widely criticized for their failure in practicing __________ when selected toyota brand
lyudmila [28]
This would be stakeholder responsibility, if I remember correctly
3 0
3 years ago
Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I
sleet_krkn [62]

Answer:

17.6%

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the rate of return on the stock by using following formula:-

Expected Provide Rate of Return = Estimate Rate of Return on the Stock + (Expected IP × Stock with a Beta on IP) + (Expected IR × Stock with a Beta on IR)

Before estimate rate of return on the stock

= 16% = α + (4% × 1) + (5% × 0.6)

= 16% = α + (0.04 × 1) + (0.05 × 0.6)

= 0.16 = α + 0.04 + 0.03

= 0.16 - 0.04 - 0.03 = α

α = 0.09 =9%

Rate of return after the changes

= 9% + (5% × 1) + (6% × 0.6)

= 0.09 + 0.05 + 0.036

= 0.176

= 17.6%

According to the analysis, New rate of return on the stock is 17.6%

8 0
3 years ago
Elyon holds a savings account in the Rochester City Bank in the United States. During an economic downturn, the bank suffers gre
melisa1 [442]

Answer:

Option B The Glass-Steagall Act

Explanation:

According to the Glass-Steagall Act, the commercial banking was separated from the investment banking. This was made to provide the investor investment security by creation of the Federal Deposit Insurance Corporation.

So here Elyon will be entertained with the imbursement of the amount at the deposit value which the insurance will safeguard the depositor's value due to bank failure.

7 0
4 years ago
Read 2 more answers
Other questions:
  • Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fi
    14·1 answer
  • Because strategic alliances rarely work as well as managers expect they will, why do companies continue to go through with them?
    15·1 answer
  • What do you feel is the key to understanding debt
    14·1 answer
  • El costo de producir x artículos está dado por yc= 3.5x + 852. Cada artículo se vende a $5, por lo que el ingreso por vender "x"
    11·1 answer
  • Suppose that white workers are getting paid $21/hour, while similarly-productive African-American workers are getting paid $18/h
    7·1 answer
  • A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local produce
    15·1 answer
  • Suppose the demand curve for a product is given by Q = 11 - 2P + 3Ps Where P is the price of the product and Ps is the price of
    13·1 answer
  • At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $779,000. Chan records it
    14·1 answer
  • he board committee that administers and approves salaries and benefits of high-level managers in a company is called the: A. Exe
    13·1 answer
  • According to Keynesians, an increase in the money supply will have its greatest impact on GDP when the aggregate demand curve in
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!