8. Solve the following for z: b = dz + g
1 answer:
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Hey there!
Assuming that all the sections are the same size, there are four sections of equal size.
Blue would be one out of those four sections, so the probability is 1/4. In decimal form this is .25, and as a percent this is 25%.
Hope this helps!
Use present value equation.
If present value of annuity equals 400,000, then you are indifferent.
where v = 1/(1+r) and A = annual payment = 800,000/20 = 40,000
PV = 400,000
After subbing in the numbers, the equation is:
Therefore at interest rate of about 7.75% you are indifferent.
If present value of annuity equals 400,000, then you are indifferent.
where v = 1/(1+r) and A = annual payment = 800,000/20 = 40,000
PV = 400,000
After subbing in the numbers, the equation is:
Therefore at interest rate of about 7.75% you are indifferent.