Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 26, 2024

Krystyna has along-term consulting contract with an insurance company that guarantees her $23,000 per year for five years. She believes inflation will be2 percent this

Krystyna has along-term consulting contract with an insurance company that guarantees her

$23,000 per year for five years. She believesinflationwill be2 percent this year and5 percent next year and then will stay at10 percent indefinitely.Krystyna'sreal MARRis12 percent. What is the present worth of thiscontract?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

International Marketing

Authors: Philip R Cateora

13th Edition

0073080063, 9780073080062

More Books

Students also viewed these Economics questions

Question

★★★★★

Find the marginal distributions and the distribution of X conditional on Y = 1 For the above joint distributions describing the values of the random variables X and Y, find both marginal...

Answered: 1 week ago

Question

★★★★★

construct and interpret a boxplot.

Answered: 1 week ago

Question

★★★★★

Using the following diagram, which gives the distribution function of a random variable X, calculate the probabilities (i) P(X Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

Five years ago a dam was constructed to impound irrigation water and to provide flood protection for the area below the dam. Last winter a 100-year flood caused extensive damage both to the dam and...

Answered: 1 week ago

Question

★★★★★

Use the information for the question(s) below. 150000 100000+ 50000 0 + -50000+ -100000 O A. No, because the NPV is positive at that rate. O B. Yes, because the NPV is positive at that rate. OC. No,...

Answered: 1 week ago

Question

★★★★★

Question 27 use the following data to compute the cash balance in cash account on Oct. 31: cash account is debit by: 4000, 3000, and 22,000 and credit by7000 and 6000 the cash balance is 16,000...

Answered: 1 week ago

Question

★★★★★

Create a circuit that has 7 input bits IN0 to IN6, that drive one seven segment display in the order indicated below. Find out to which values the 7 input bits need to be set to get the decimal...

Answered: 1 week ago

Question

★★★★★

You know the following concerning a common stock: EPS$3.00 Payout ratio25% P/E10 Annual ROR6% of earnings and div 1) If you want to earn 10% percent, should you buy this stock? 2) What is the maximum...

Answered: 1 week ago

Question

★★★★★

What is the speedup of the basic pipeline (with branch predictions) shown in the Introduc- tion slides (Tsequential / Tpipelined) if 1/5 of all instructions are conditional branches and 4/5 of them...

Answered: 1 week ago

Question

★★★★★

3.You borrow $10,000 from Friendly Finance for four years with quarterly payments keyed to a 10% interest rate.$1,000 interest each year plus $10,000 equals $14,000.Spread over 4 years this loan...

Answered: 1 week ago

Question

★★★★★

reword Chaukhats should be seasoned teak wood. Shutters should be teaked wood 4.3cm thick penelled and partly glazed as required with additional wire gauge shutters. Allfitting should be brass. Doors...

Answered: 1 week ago

Question

★★★★★

Jorge drives a truck for one company, Inter-City Transportation Inc. Assume that he does not meet the common law tests for "employee" status. Discuss whether Inter-City may still be obliged to give...

Answered: 1 week ago

Question

★★★★★

11. What types of information collected are most frequently used in decision-making?

Answered: 1 week ago

Question

★★★★★

10. How much time does it take between when we collect information until it is used in decision-making?

Answered: 1 week ago

Question

★★★★★

2. Ask questions, listen rather than attempt to persuade.

Answered: 1 week ago

Previous Question Next Question