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mojhsa [17]
1 year ago
7

You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize

will be awarded on your 100th birthday, 70 years from now. The appropriate discount rate is 8 percent. What is the present value of your winnings
Business
1 answer:
Arada [10]1 year ago
6 0

Answer:

Present value = $6404.20

Explanation:

Data provided in the question :

Amount of the Centennial lottery prize won = $1.4 million = $1,400,000

Time after which the amount will be received, n = 70 years

Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

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Karen Most has a federal tax levy of $2,100.50 against her. If Most is single with two personal exemptions and had a take-home p
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1 year ago
Pricing objectives are derived from broader marketing objectives. Organizations using a multisegment marketing approach to marke
spin [16.1K]

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True

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8 0
2 years ago
A manager wants to minimize the total cost of the inventory. The annual demand for the wheel is 60,000 wheels, and the firm oper
Ede4ka [16]

Answer:

Check th explanation

Explanation:

2a.

Here, we will have to apply the economic production quantity as we have to identify optimal production quantity to minimize the cost.

Annual Demand D = 60000

Working Days = 240

Daily Demand d= 60000/240 = 250

Production Rate p = 300

Set up cost S = 150

Holding cost H = 3

Economic Production Quantity Q = (2DS/(H*(1-(d/p))))^(1/2)

Q = (2*60000*150/(3*(1-(250/300))))^(1/2)

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4 0
2 years ago
The municipality of Smallville has arranged to borrow​ $30 million in order to implement several public projects​ (flood control
sergeinik [125]

Answer:

The correct response is "6.71 years".

Explanation:

The given values are:

Loan amount

= $30 Million

Loan payment per year

= $5 Million

Interest rate

R = 3%

Let,

The take number of years will be "n".

⇒  30=5\times (\frac{\frac{1-1}{(1+3 \ percent)^n}}{3 \ percent} )

⇒  30\times \frac{3 \ percent}{5}=(\frac{1-1}{1.03^n} )

⇒  .18=\frac{1-1}{1.03^n}

⇒  \frac{1}{1.03^n} =1-.18

⇒  1.03^n=\frac{1}{.82}=1.2195

On taking log both sides, we get

⇒  n=\frac{log (1.2195)}{log(1.03)}

⇒  n=6.71 \ years

8 0
1 year ago
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