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
Feliz [49]
3 years ago
9

You won the lottery and may choose between Prize 1, which would pay you $50,000 today and $200,000 at the end of 10 years OR rec

eive $50,000 today plus some annuity at the end of each year for 10 years. Using an interest rate of 5%, which of the following comes closest to the annuity that will make the present value of both prizes the same?
a. $172,782.65.
b. $38,431.68.
c. $122,782.65.
d. $15,900.91.
Business
1 answer:
Taya2010 [7]3 years ago
5 0

Answer:

Annual payment= $15,900.91

Explanation:

<u>First, we need to calculate the present value of Prize 1:</u>

PV= FV / (1 + i)^n

PV= 50,000 + [200,000 / (1.05^10)]

PV= $172,782.65

<u>Now, we need to determine the annuity that would make equal both prizes:</u>

Difference= 172,782.65 - 50,000= $122,782.65

To calculate the annuity that would have a PV of $122,782.65; we need to use the following formula:

Annual payment= (PV*i) / [1 - (1+i)^(-n)]

Annual payment= (122,782.65*0.05) / [1 - (1.05^-10)]

Annual payment= $15,900.91

You might be interested in
To increase sales of its low-fat pizzas in its established market, Dietizza is offering discounts on all its pizzas. According t
Artist 52 [7]

Answer:

market penetration

Explanation:

According to my research on different market strategies, I can say that based on the information provided within the question Dietizza has adopted the market penetration alternative. According to Ansoff's strategic opportunity matrix this alternative is defined as using an established product in the same established market in order to increase sales for the business. Which is what Dietizza is doing by lowering the the prize of the pizza and reintroducing it into the same market.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
To what degree a country's legal system is based on the rule of law matters little in international business.
marissa [1.9K]

Rule of law is very important in case of country’s legal system

This means that no one can be regarded to be above the law in a society where the rule of law exists. In a parliamentary democracy, the rule of law places a duty on all citizens to uphold the law, and in order to do so, the legislation must be just and not arbitrary. The goal of the rule of law, like other constitutional concepts, is to advance peoples' freedom and basic rights.

People and corporations must abide by the regulations set forth by the rule of law in order to avoid penalties. The rule of law establishes norms for businesses so that they, too, know what is required of them in their transactions and enables people to comprehend what is expected of them in their personal capacities.

Learn more about rule of law at

brainly.com/question/820417

#SPJ4

3 0
1 year ago
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their com
balu736 [363]

The competitive capability which relates to flexibility is the reason that Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers.

<h3>What is the competitive capability?</h3>

Competitive capability relates to the unique ability possess by a company over other competitors.

In this case, the Gymtastic possess the competitive capability called Flexibility.

In conclusion, the competitive capability which relates to flexibility is the reason that Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers.

Read more about Competitive capability

<em>brainly.com/question/5319576</em>

4 0
2 years ago
David Ricardo, a nineteenth-century economist, wrote, "The price of corn is high not because a rentis paid, but a rent is paid b
pishuonlain [190]

Answer:

The correct answer is the option 3: if the price of corn rises because of increased demand for corn, land rents will rise to absorb most of the extra revenue received by tenant corn farmers.

Explanation:

To begin with, in David Ricardo's statment it is established that ''the rent is paid because the price of the corn is high'' therefore it is understandable that it is stated that <em><u>the price of the corn is not a cause of the rent but it is the opposite</u></em>, the price causes the rent due to the fact that <u><em>the rent is not a cost</em></u> that has to go within the price but the price goes first and then the rent happens. Therefore that if there it an increase in the population and that causes and<em> increase in the demand of the corn, then the price will rise and consequently the rent will rise</em> to in order to obtain the most of the extra revenue that it can.

6 0
3 years ago
Suppose that the federal reserve decides to decrease the money supply with a $300 sale of treasury bills. Complete the tables th
ANEK [815]

The monetary base is a liability, whereas Treasury notes are assets.

tables that represent the financial position of the federal reserve and commercial banks after this open-market operation:

A $ 300, B $ 300, C $ -300, D $ 300

a negative sign use for reduced values.

<h3>What do we mean by asset?</h3>

A resource having economic worth that a person, business, or nation owns or manages with the hope that it will someday be useful is referred to as an asset. A company's balance sheet lists assets. They are acquired or produced to raise a company's value or improve the operations of the company. Physical commodities like equipment, real estate, raw materials, and inventories are considered assets. Intangible objects like patents, royalties, and other forms of intellectual property are also considered assets.

To know more about asset visit:

brainly.com/question/13848560

#SPJ4

3 0
1 year ago
Other questions:
  • Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.
    15·1 answer
  • Mario transferred real estate with an adjusted basis of $140,000 for similar real estate with a fair market value of $160,000. T
    15·1 answer
  • In their op ed, the executives sought to provide information to the public and drivers about their positions regarding providing
    10·1 answer
  • An additional means of reducing merchandise trade deficits is to implement exchange controls, thereby matching export payments w
    11·1 answer
  • A firm that wants to achieve economies of scale could do so by a. producing a smaller quantity of output. b. employing a smaller
    13·1 answer
  • Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f
    10·1 answer
  • On January 1, 2019, Sandhill Corporation acquired machinery at a cost of $1290000. Sandhill adopted the double-declining balance
    9·1 answer
  • A company's ____________ is the percentage of the total target market for the product that belongs to the company.
    14·2 answers
  • You earn $50,000 per year. Your entire income is taxed at the 10 percent federal tax bracket. Which value reflects what you will
    12·1 answer
  • Austin Power Corp., a corporation incorporated in Delaware, has recently gone bankrupt thus failing to pay its suppliers and cre
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!