Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Benjamin knows that he will be receiving $130,801 to settle an insurance claim, but he will not actually be paid for another 2 months. Needing

Benjamin knows that he will be receiving $130,801 to settle an insurance claim, but he will not actually be paid for another 2 months. Needing cash now, he is considering an offer from a finance company to buy this payment from him by paying him cash today. The annual simple discount rate they are offering him is 34%. How much would he receive if he takes this deal? Round your answer to the nearest dollar

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

Handbook Of High Frequency Trading

Authors: Greg N. Gregoriou

1st Edition

0128022051, 978-0128022054

More Books

Students also viewed these Finance questions