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
Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require
melamori03 [73]

Answer:

False.

Explanation:

Market diversification is a strategy in which the products of an orgnization are offered in a new market. The goal is for the company to grow and find new ways to increase profits. According to this, the statement that says that dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs is known as market diversification is false.

7 0
3 years ago
After spending a summer "down under," two Oregon friends, Rick and Mick, created a general partnership to import emu from Austra
I am Lyosha [343]

Answer:

A. True

Explanation:

The Uniform Partnership Act, is an act that exists for the regulation of commercial partnerships of the states of the USA (with the exception of Louisiana).

Therefore, the question is true, as the law stipulates that in a common property, profits and losses must be shared equally and each party must have the right to obtain regular knowledge and receipt of the financial statements that relate to the business.

8 0
3 years ago
1. Contrast traditional economies, command economies, and economies.
Dima020 [189]

Answer:

1. A traditional economy is a system that relies on customs, history, and time-honored beliefs.2 A market economy is a system where the laws of supply and demand direct the production of goods and services. A command economy is where a central government makes all economic decisions.

2. Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate. GDP can be calculated in three ways, using expenditures, production, or incomes.

3. Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe.

4 0
3 years ago
Select the best answer for the question.
Lorico [155]

Answer:

QC

Explanation:

US dollar used to be backed by gold but this is not the case anymore. US dollar being as a flat currency is backed by governemnt through federal reserve.

6 0
3 years ago
Many plant cells have very large membrane covered organelles that can store water and other liquid.
RoseWind [281]
The answer to your question is the vacuole it holds water. the vacuole is responsible for helping the plant stay up right when the vacuole is full the plant is perky and vibrant but when it is empty the plant becomes dull and wilted
6 0
3 years ago
Other questions:
  • A firm has a debt-equity ratio of 57 percent, a total asset turnover of 1.12, and a profit margin of 4.9 percent. The total equi
    11·1 answer
  • Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investme
    9·1 answer
  • Mason is restoring a car and has already spent $3500 on the restoration. He could sell the car now for $2800. However, if Mason
    8·1 answer
  • Mike Samson is a college football coach making a base salary of $650,400 a year ($54,200 per month). Employers are required to w
    8·1 answer
  • Which function is used to add a range of cells
    9·1 answer
  • A bad credit rating could prevent you from obtaining a
    6·1 answer
  • In how many cities are Federal Reserve district banks located? 4 12 50 8
    6·2 answers
  • Compute Emily's 2018 taxable income on the basis of the following information. Her filing status is single. Salary $85,000 Inter
    10·1 answer
  • Suppose Alyssa comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertis
    13·1 answer
  • Match the tasks with the professionals who would complete them.
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!