Total lottery money = $ 1 mn
To be paid out in 20 equal installments over t=1 to t=20
N = Nos. of years = 20
Value of each installments, V = $ 1 mn / 20 = $ 0.05 mn
Yield = Discount rate = Y = 5% = 0.05
Current price for this lottery winning = P = PV of all the future payment on the lottery
= $ 0.62311 mn
if it's paid out over 50 years then,
V = $ 1 mn / 50 = $ 0.02 mn
N = 50
Hence, current price of lottery today
=$ 0.36512 mn
Problem 3. Some bond calculus. (Hint: for this exercise, the formula for a geometric series might...
Problem 3. Some bond calculus. (Hint: for this exercise, the formula for a geometric series might be useful: if q 1, then 1-q I will assume in the future, that this formula is well known. 1. Suppose a coupon bond has a face value F0 to be repaid after n years and promises to pay a coupon C equal to an interest rate of r percent of that face value for all years t = 1, . . . ,n...
(b) Use the identities above and the formula for the sum of a geometric series to prove that if n is an integer and je[1,2,..., n) then sin2 (2ntj/n) = n/2 t-1 so long as jメ1n/21, where Ir] is the greatest integer that is smaller than or equal to x. We were unable to transcribe this image
(b) Use the identities above and the formula for the sum of a geometric series to prove that if n is an integer...
Consider the following scenario. Suppose that you are in the market to buy a new $20,000 car. You intend to take out a loan to pay for the car. The market interest rate is at 6% annually, i.e. this is the interest rate you would get from the bank. a. [3 pts] Consider the simple loan case. Suppose that the dealership allows you to pay the car off in four installments of $5,000, with each installment due once a year....
EXERCISE 4D Rhetorical Features of Argument ntifying denduy 3 SBV, we identify the elements of written argument presented in this Io the first essay, identifv auter Il h In the n the second, we ask you to do the same. We must point out that sometimes ntegories overlap: A statement (or statements) may serve as both a refutation these and a premise thesis counterarguments premises refutations concessions Could It Be That Video Games Are Good for Kids? STEVEN JOHNSON Dear...
Billy Thornton borrowed $20,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month? a. $139.88 b. $133.22 c. $120.83 d. $126.88 e. $146.87 1 points QUESTION 9 Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in 5 equal installments at the end of each of the next 5 years. How...
Hello, I need question 1 sections a,b,and c. Please make around
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CHAPTER 4 Techniques for Understanding Consumer Demand and Behavior 109 t effect. ed that managers be familiar with both approaches because each provides useful ues need to realize that marketing analysis builkds on the fundamental eco- of demand and elasticity. Marketers take these basie economie n Table 3.7 in goies and develop analyses of brand differentiation, market segmentation, and dct pricing, While some of the formal...
internal project 1
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Instructions: Study the case that starts on page 3 carefully. Then write concise answers to the following questions regarding the internal control system of Duarf, Inc. Clearly label your responses with proper headings and subheadings. Be very specific and precise. Answers that appear to be beating around the bush will not get any credit. 1. What are the controls in place that under normal conditions should function well to prevent embezzlements or frauds?...
In your view,is the kind of child slavery discussed in
this case absolutely wrong no matter what,or is it only relatively
wrong,ie.,if one
happens to live in a society(like ours) that disapproves of child
slavery? Explain your view and why you hold it.
Forty-five percent of the chocolate we consume in the that a portion of the Ivory Coast cocos beans that goes into United States and in the rest of the world is made from co- the chocolate we...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...