FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 pts Question 3 You have won a lottery and will receive 20 annual payments of $40.000, starting today and ending in 19 years. If

image text in transcribed
5 pts Question 3 You have won a lottery and will receive 20 annual payments of $40.000, starting today and ending in 19 years. If the relevant annual discount rate is 6.0%, what is the present value of these winnings? Choose the answer that is closest. $400.000 O $450,000 $490,000 $620,000 $680,000 $730,000 $770,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Economics An Applications Approach

Contemporary Economics An Applications Approach

Authors: Robert Carbaugh

8th Edition

1138652199, 978-1138652194

More Books

Students also viewed these Finance questions

Question

★★★★★
Explain how the Fed's monetary policy may indirectly affect the prices of equity securities.

Answered: 1 week ago

Question

★★★★★
Understanding customer behavior with VALS (videos) https://youtu.be/VlPlOenNWa8 https://youtu.be/z32LbqKPZMo 1.) Explain what is the VALS Assessment? 2.) Select and define 2 of the 8 distinct types...

Answered: 1 week ago

Question

★★★★★
Explain why economists sometimes use religion to explain financial and investment decisions.

Answered: 1 week ago

Question

★★★★★
Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup....

Answered: 1 week ago

Question

★★★★★
(a) Tommy invests $200 at 5% simple interest, paid annually, for 10 years. How much will he have at the end of 10 years? (b) Which option below would yield the greatest future value? i) increasing...

Answered: 1 week ago

Question

★★★★★
Assume a municipal bond has 25 years until maturity and sells for $5,565. It has a coupon rate of 5.40 percent and it can be called in 10 years. What is the yield to call if the call price is 110...

Answered: 1 week ago

Question

★★★★★
Briefly explain the following paragraph. Recommendations for Access Point and Antenna Placement: The following recommendations are made for the placement of the access point and antenna: The access...

Answered: 1 week ago

Question

★★★★★
Echuca Corporation manufactures microcomputer. To manufacture microcomputer, Echuca Corporation set up the machines and moulds. Set-up overhead costs consist of some costs that are variable and some...

Answered: 1 week ago

Question

★★★★★
How can you detect intrusions to your networks and prevent them? Do you think digital forensics and contingency planning are enough to solve the problem or do you need more technologies? Justify your...

Answered: 1 week ago

Question

★★★★★
Objective 3: Compute the Mean and Standard Deviation of a Binomial Random Variable 6.2 The Binomial Probability Distribution 6.2.RA-2 0.67 of 1 Point Question Help According to an almanac, 60% of...

Answered: 1 week ago

Question

★★★★★
Because cigarettes and tobacco are dangerous for the health of both smokers and passive smokers, it can be concluded that cigarettes and tobacco are as harmful as drugs. There is no reason for the...

Answered: 1 week ago

Question

★★★★★
Explain the various employee benefit laws.

Answered: 1 week ago

Question

★★★★★
Describe direct financial compensation (core compensation), indirect financial compensation (employee benefits), and nonfinancial compensation.

Answered: 1 week ago

Question

★★★★★
Describe the premium pay benefit practice.

Answered: 1 week ago

Previous Question Next Question