Ana has won a lottery. She was offered two options to receive the award: She can either take it in five installments of $60,000 annually, starting from now; or she can take a lump-sum of $255,000 now. Assuming (a) interest at an annual rate of 5% compounded annually, or (b) interest at an annual rate of 6% compounded continuously, which option should she choose under the consideration of cash value only?
A) If the interest is at the annual rate of 5%, compounded annually, then the present value of the five installments is $______. B) If the interest is at the annual rate of 6%, compounded continuously, then the present value of the five installments is $______.

Answers

Answer 1

Answer:

Results are below.

Step-by-step explanation:

Giving the following information:

She can either take it in five installments of $60,000 annually, starting from now; or she can take a lump-sum of $255,000 now.

First, we determine the value of the 5 installments using a 5% annual compounded rate.

We calculate the future value, and then the present value:

FV= {A*[(1+i)^n-1]}/i

A= annual payments

FV= {60,000*[(1.05^5) - 1]} / 0.05

FV= $331.537.88

PV= FV/(1+i)^n

PV= $259,768.60

At an annual rate of 5% compounded annually, she should choose the five installments instead of the $255,000.

Now, if the annual rate is 6% continuously compounded.

First, we need to calculate the effective interest rate:

r= e^i - 1

r= effective inerest rate

r= e^0.06 - 1

r= 0.0618

FV= {60,000*[(1.0618^5) - 1]} / 0.0618

FV= 339,443.23

PV= 339,443.23/1.0618^5

PV= $251,509.01

At an annual rate of 6% compounded continuously, she should choose the $255,000.


Related Questions

PLS HELP ASAP Which equation models this situation?
28 more than a number is 33.
A. X+ 33 = 28
B. X- 28 = 33
C. X = 28 + 33
D. X + 28 = 33

Answers

Answer:

d

Step-by-step explanation:

Answer:

more than a number = addition

so it is D because the end result has to be 33.

Step-by-step explanation:

Hope this helped!

plz help this is hard for me What is the area of this figure?

Answers

Answer:

21 m^2

Step-by-step explanation:

(5*2) + (6*2) - (1*1) = 21

Answer:
21m^2

Explanation:
First, we can find the areas of the two large rectangles.
A=lw
A=2*6
A=12m^2

A=lw
A=2*5
A=10m^2

Now, we can find the area of the small square where the two rectangles overlap. We can tell that the side lengths of the square are all equal to 1 (we know this because the side lengths of the rectangles are 1 less on one side).
A=lw
A=1*1
A=1m^2

Now, we can subtract 1m^2 from either of the two rectangles’ area we solved for earlier.

12m^2-1m^2
=11m^2

Then, we can add this area to the area of the other rectangle.

11m^2+10m^2
=21m^2

I hope this helps!

18. The side length of a square is 7a 3b feet. What is the area of the square in feet? Box your final answer!

Answers

Answer:

ouhnewu0h8coehuqnce0nuqfenueqnuqwe0nu8iquenw

Step-by-step explanation:

uieqnueru0njfqenu0fqenuen0rue0fuinfuine0

A clock gains time at a steady rate. It is set to the correct time at
10: 00 AM. When the clock shows 2 : 00 PM, the correct time is
1: 36 PM. How many minutes fast will the clock be the next time the
correct time is 5 : 30 PM?

Answers

Answer:

The clock will be 50 minutes fast

Step-by-step explanation:

Proportions

It's known a clock gains time at a steady state, or constant rate.

At 10:00 AM the clock is set at the correct time and at 1:36 PM the clock shows 2:00 PM. This means in that period of time, it has gained 24 minutes.

From 10:00 AM to 1:36 PM there are 3 hours and 36 minutes, or equivalently, 3*60+36 = 216 minutes

Our clock gains time at a rate of 24 minutes each 216 minutes. This gives the ratio 24:216 = 1:9.

When the new correct time is 5:30 PM, there will have passed 7 hours and 30 minutes since 10:00 AM, or equivalently, 7*60+30 = 450 minutes.

Since the clock gains time at a ratio 1:9, the time gained is 450/9=50 minutes.

The clock will show 50 minutes more than the correct time of 5:30 PM, that is, 6:20 PM.

The clock will be 50 minutes fast

Find (x + 3)(4x - 1). *
O4x2 - 11x-3
O 4x^2 + 11x - 3
O 4x^2 + 13x - 3
4x^2 + 12x - 3

Answers

Answer:

Step-by-step explanation:

(x+3)(4x-1) = 4x² + 12x - x - 3 = 4x² + 11x - 3

10x (4 +2) = 10 x6 =60​

Answers

It is x=1 because it just is

ayo, i need help. willing to give brainliest to correct and first answer. it's for iready math bro.

Answers

Answer:

ay bro its 39 bc the q and r together they equal 39 plus you can also solve it with the calcliqiusnatine if you know what that is hope this helps!

Step-by-step explanation:

Answer:

29 degrees.

Step-by-step explanation:

The total of a triangle is 180 degrees.

If R = 27, that means that P and Q must make up 153 degrees.

The exterior and interior angle of Q will equal 180 degrees, as that is a straight line. Therefore, do 180 - 56 = 124, which is the degree measure of Q.

Lastly, do 153 - 124 to get 29 degrees for P.

The lifetime of a certain brand of battery is normally distributed with a mean value of 8 hr and a standard deviation of 0.8 hr when it is used in a particular cassette player.Suppose that two new batteries are independently selected and put into the player. The player ceases to function as soon as one of the batteries fails.
(a) What is the probability that the player functions for at least 6 hr?
(b) What is the probability that the cassette player works for at most 9 hr?

Answers

Answer:

Step-by-step explanation: o847434y3u3u44y4u5u5u5uu6

AB = AC = 25 and BC = 30. BD is perpendicular to AC . Find BD.

Answers

Answer:

15

Step-by-step explanation:

Sqr root of 225

Answer:24

Step-by-step explanation:

that's wrong, and I'm here to put the correct answer

take a look at this image, because ac=25 you set dc as x and ad as 25-x, then after that, you can form the equation root of 25^2-(x5-x)^2=root of 30^2-(x)^2 using the pythaeogrem theorem. After that you would get that x=18, then after that you just apply the theorem. 30^2-18^2 root which you would then get 24.

ntries into T Accounts and Trial Balance

Connie Young, an architect, opened an office on October 1, 20Y4. During the month, she completed the following transactions connected with her professional practice:

Transferred cash from a personal bank account to an account to be used for the business, $66,600.
Paid October rent for office and workroom, $6,700.
Purchased used automobile for $43,000, paying $10,000 cash and giving a note payable for the remainder.
Purchased office and computer equipment on account, $13,300.
Paid cash for supplies, $3,200.
Paid cash for annual insurance policies, $4,500.
Received cash from client for plans delivered, $16,700.
Paid cash for miscellaneous expenses, $1,800.
Paid cash to creditors on account, $3,860.
Paid $530 on note payable.
Received invoice for blueprint service, due in November, $2,200.
Recorded fees earned on plans delivered, payment to be received in November, $11,500.
Paid salary of assistants, $3,500.
Paid gas, oil, and repairs on automobile for October, $870.
Required:

1. Record the above transactions (in chronological order) directly into the T accounts. To the left of the amount entered in the accounts, select the appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

Cash

fill in the blank ee9b75febf99fe7_2

fill in the blank ee9b75febf99fe7_4

fill in the blank ee9b75febf99fe7_6

fill in the blank ee9b75febf99fe7_8


fill in the blank ee9b75febf99fe7_10


fill in the blank ee9b75febf99fe7_12


fill in the blank ee9b75febf99fe7_14


fill in the blank ee9b75febf99fe7_16


fill in the blank ee9b75febf99fe7_18


fill in the blank ee9b75febf99fe7_20


fill in the blank ee9b75febf99fe7_22
Bal. fill in the blank ee9b75febf99fe7_23



Accounts Receivable

fill in the blank ee9b75febf99fe7_25



Supplies

fill in the blank ee9b75febf99fe7_27



Prepaid Insurance

fill in the blank ee9b75febf99fe7_29



Automobiles

fill in the blank ee9b75febf99fe7_31



Equipment

fill in the blank ee9b75febf99fe7_33



Accounts Payable

fill in the blank ee9b75febf99fe7_35

fill in the blank ee9b75febf99fe7_37


fill in the blank ee9b75febf99fe7_39
Bal. fill in the blank ee9b75febf99fe7_40


Notes Payable

fill in the blank ee9b75febf99fe7_42

fill in the blank ee9b75febf99fe7_44
Bal. fill in the blank ee9b75febf99fe7_45


Connie Young, Capital


fill in the blank ee9b75febf99fe7_47


Professional Fees


fill in the blank ee9b75febf99fe7_49


fill in the blank ee9b75febf99fe7_51
Bal. fill in the blank ee9b75febf99fe7_52


Salary Expense

fill in the blank ee9b75febf99fe7_54



Blueprint Expense

fill in the blank ee9b75febf99fe7_56



Rent Expense

fill in the blank ee9b75febf99fe7_58



Automobile Expense

fill in the blank ee9b75febf99fe7_60



Miscellaneous Expense

fill in the blank ee9b75febf99fe7_62

3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 20Y4. For those boxes in which no entry is required, leave the box blank.

Connie Young, Architect
Unadjusted Trial Balance
October 31, 20Y4
Debit
Balances Credit
Balances

fill in the blank a257bb028f83050_2
fill in the blank a257bb028f83050_3

fill in the blank a257bb028f83050_5
fill in the blank a257bb028f83050_6

fill in the blank a257bb028f83050_8
fill in the blank a257bb028f83050_9

fill in the blank a257bb028f83050_11
fill in the blank a257bb028f83050_12

fill in the blank a257bb028f83050_14
fill in the blank a257bb028f83050_15

fill in the blank a257bb028f83050_17
fill in the blank a257bb028f83050_18

fill in the blank a257bb028f83050_20
fill in the blank a257bb028f83050_21

fill in the blank a257bb028f83050_23
fill in the blank a257bb028f83050_24

fill in the blank a257bb028f83050_26
fill in the blank a257bb028f83050_27

fill in the blank a257bb028f83050_29
fill in the blank a257bb028f83050_30

fill in the blank a257bb028f83050_32
fill in the blank a257bb028f83050_33

fill in the blank a257bb028f83050_35
fill in the blank a257bb028f83050_36

fill in the blank a257bb028f83050_38
fill in the blank a257bb028f83050_39

fill in the blank a257bb028f83050_41
fill in the blank a257bb028f83050_42

fill in the blank a257bb028f83050_44
fill in the blank a257bb028f83050_45
fill in the blank a257bb028f83050_46
fill in the blank a257bb028f83050_47
4. Determine the net income or net loss for October.

$fill in the blank 9acd7e077000f8b_2

Answers

this was an extremely long read

Some isosceles triangles are not equilateral.
O A. True
O B. False

Answers

I looked it up, it says eq triangles have 3 sides. An isos triangle is one with 2 equal sides. Every eq triangle is isos, but not every isos triangle is equilateral. I think the statement in the photo is true.

rea Calculations
1.
What is the surface area of the bottom of a rectangular storage
tank 10 feet long and five feet wide?

Answers

Area = length x width
10 X 5 = 50


Given that R= 9x + 8y
Find y when x = 3 and R= 27

Answers

Answer:

1/3 or 0.3 (recurring)

Step-by-step explanation:

Let's substitute our numbers into the equation.

27 = 9x + 24             I multipled 8 by 3 in order to get 24, because x equals 3.

Now take away 24 leaving 9x on its own.

3 = 9x

Divide 9 to separate it from x.

3/9 = x

Simplify the fraction.

1/3 = x

Write an expression equivalent to 9(8x + 5) + 7

Answers

Answer:

72x+52

Step-by-step explanation:

72x+45+7=72x+52

A bag contains 15 red marbles, 13 blue marbles,
and the rest are yellow marbles. There are a
total of 50 marbles in the bag. What is the
probability of choosing a yellow marble?
3
A)
10
13
B)
50
14
C)
25
11
D)
25

Answers

Answer:

11/25

Step-by-step explanation:

15 red, 13 blue, and 50 total. Therefore, yellow = 50-15-13=22.

Probability (yellow) = 22/50 = 11/25

Answer:

[tex]\frac{11}{25}[/tex] chance

In percent form;

44%

Step-by-step explanation:

1. Approach

First, one must find the amount of yellow marbles in the bag. This can be done by subtracting the amount of red and blue marbles from the total marbles in the bag. Then one will set up a proportion and solve to find out the probability of choosing a yellow marble. Remember, probability is [tex]\frac{desired_{.}outcomes}{total_{.}outcomes}[/tex]

2. Find the amount of yellow marbles

Subtract the number of red and blue marbles from the total marbles in the bag;

[tex]total_{.}marbles-(red+blue)\\\\=50-(15+13)\\\\=50-28\\\\=22[/tex]

There are [tex]22[/tex] yellow marbles.

3. Find the probability of selecting a yellow marble

Remember, probability is [tex]\frac{desired_{.}outcomes}{total_{.}outcomes}[/tex] and a percent is out of 100. Using this knowledge one can set up a proportion in the format;

[tex]\frac{desired_{.}outcomes}{total_{.}outcomes} = \frac{percent}{100}[/tex]

Substitute;

[tex]\frac{22}{50}=\frac{percent}{100}[/tex]

Simplify,

[tex]\frac{11}{25}=\frac{percent}{100}[/tex]

Cross products,

[tex]\frac{11}{25}=\frac{percent}{100}\\\\1100=25*(percent)\\[/tex]

Inverse operations;

[tex]1100=25*(percent)\\/25\\\\44=percent[/tex]


Solve the equation.
-(1+7x) - 6(-7- x) = 36
a)
5
X=--
6
b)x= -7
c) x = 13
d) x = 5

Answers

Answer:

x=5

Step-by-step explanation:

esa es la respuesta correcta

Answer: it D x=5

Step-by-step explanation:

find the answer?
35-y=21

Answers

The answer is “14” because 14 will represent the Y, so if you do 35-14 the answer will be 21.

Help!!!!!!!!!!!!!!!!!!!!!

Answers

n = 72
r = 18
s = 17
t = 16

Please show work so i know how you got your answer..thank you and have a nice day<3

Answers

Answer:

V=whl=2·2.5·4=20

Step-by-step explanation:

Answer:

2880 feet³

Step-by-step explanation:

since the question is asking for cubic feet we know we're finding volume.

v=l·w·b

v=4·24·30

=2880

Evaluate 11.5s + 10.7t when s = 7 and t = 8 .

Answers

Answer:

166.1

Step-by-step explanation:

It would become 11.5 * 7 + 10.7 * 8 = 80.5 + 85.6 = 166.1

Find the value of x and the value of y

Answers

Answer:

A. x = 16, y = 9√2

Step-by-step explanation:

✔️Let's find y first using trigonometric ratio:

Reference angle = 45°

Hypotenuse = y

Opposite = 9

Therefore,

Sin(45) = 9/y

y = 9/sin(45)

y = 9/(1/√2)

y = 9 × √2/1

y = 9√2

✔️To find x, let's find the adjacent side of the right triangle first, them add it to 7.

Adjacent side using Pythagorean Theorem would be,

Adj² = y² - 9²

Adj² = (9√2)² - 9²

Adj² = 162 - 81

Adj² = 81

Adj = √81

Adj = 9

x = adj + 7 = 9 + 7

x = 16

Is the quotient 3.6÷9 greater than or less than 1?explain to a friend

Answers

Answer: less than 1

Step-by-step explanation:

3.6/9 = 0.4

0.4 = 4/10 or reduced, 2/5

2/5 is less than 1

Answer:

The quotient of 3.6/9 is less than 1

Step-by-step explanation:

Quotient means the number we have once we divide two number

3.6/9 is equal to 0.4 and if it were to be greater than 1 there wouldn't be a zero in the ones place

Campsite fees
(per day)
Tent ...... .. $15.00
Caravan ....... $25.00
The sign shows the fees charged at a campsite.
Today there are 54 tents and 18 caravans on the site.
Calculate the fees charged today.​

Answers

Answer:

1260

Step-by-step explanation:

Tents: 15×54=810

Caravans: 25×18=450

450+810=1260

Answer:

$1260

Step-by-step explanation:

Campsite Fees:

Tent - $15 (per day)

Caravan - $25 (per day)

No. of Tents and Caravans today:

Tents - 54

Caravan - 18

Total fees for Tent = 15 x 54

= $810.

Total fees for Caravan = 25 x 18

= $450.

Fees altogether for Today = Total fees for Tent + Total fees for Caravan

= $810 + $450

= $1260

If you split the circle into 4 equal parts, how many degrees will each piece be? Show your work.

Answers

Answer:360 degrees in a circle divide by 4 is 90

Step-by-step explanation: there are 360 degrees in a circle so divide that by 4 and you get 90

A ____ is a term with a number part but no variable. (WILL GIVE BRAINLIEST) (❁´◡`❁)​

Answers

Answer: it’s a Constant!

Step-by-step explanation:

The length of a rectangle is two times its width. Find the area if its perimeter is 7 1/3

Answers

Let x be the width

width = x

Length is twice its width

length = 2x

Perimeter = length + width + length + width

Perimeter = x + 2x + x + 2x = 6x

Given that perimeter = 7 1/3

6x = 7 1/3

x = 7 1/3 ÷ 6 = 1 2/9

So width = 1 2/9

Length = 1 2/9 x 2 = 2 4/9

Area = length x width

Area = 1 2/9 x 2 4/9

Area = 2 80/81 square cm

What is 1.905 written as a mixed number in simplest form?

Answers

Answer:

1 9/10

Step-by-step explanation:

If you need this as a fraction then the answer is probably 1 9/10

The required mixed number for 1.905 is 1 905/1000  or 1 9 / 10.

Given that,
To determine the mixed fraction of 1.905.

What is simplification?

The process in mathematics to operate and interpret the function to make the function or expression simple or more understandable is called simplifying and the process is called simplification.

What is the fraction?

Fraction is defined as the number of compositions that constitutes the Whole.

Here,
A mixed number is a number consisting of a whole number and a proper fraction.
The given number,
= 1.905
= 1 + 0.905
= 1 + 905 / 1000
= 1 905 /1000

Thus, the required mixed number for 1.905 is 1 905/1000  or 1 9 / 10.

Learn more about simplification here: https://brainly.com/question/12501526

#SPJ2

The temperature fell by 15 degrees Fahrenheit today.
Write a signed number to represent this temperature change.

Answers

Answer is   -15

We read this out as "negative 15" or you could write "negative fifteen".

The negative indicates the temperature went down. It doesn't necessarily mean that the final temperature is -15 degrees.

For example, if it starts being 50 degrees F, and drops by 15 degrees, then 50+(-15) = 50-15 = 35 degrees is the temperature after that drop. It might help to use a vertical number line.

Write the equation in slope-intercept form
of the line graphed below

Answers

Y = -1/3x + 1

Y = mx + b
M=slope and you get slope by doing rise over run
b= y intercept which is a 1

Fill in the table using this function rule.
y=-2x +4

Answers

Answer

i think this is what you mean

Step-by-step explanation:

x          y

2         0

1          2

0         4

-1         6

-2        8

Other Questions
Compound InterestWhen Jack turned 21, he decided to start investing $200 a month every year for nine years. At age 30, he decided to stop investing altogether. Blake started a little later, investing $200 a month every month starting at age 30, all the way until the ripe old age of 67. Assuming that they were both amazing at investing and made 11% interest per year, how much money will they both have at age 67? A postsecondary school that has a set of requirements for admission iscalled aA. community college.B. selective college.C. junior collegeD. vocational and technical school. what is flok dance?why is it called a cultural symbol of a particular community?Can you help me I can help you ttooooooooo is a rule that assigns each value of the independent valable toone value of the dependent variable.Answer here which expression is equivalent to 38*5?150+13185-13190+40200-10 Angie and Kelly are playing a card game. Angie has 37 points. She has 5 points less than Kelly. How many points does Kelly have? A) 42 B)45 C)32 SEASON 2 OF JULIE AND THE PHANTOMS IS COMING 2021 SEPTEMBER(CANT WAIT) How do manufacturers benefit from coupons? what is 6:15 in spanish A data set consists of 6 different whole numbers. The difference between the largest value and the smallest value is 21 and the median is 40. What is the largest possible mean of this data set? What are the 3 C's of First Aid? Please put then in the correct order. Which of the following describes how Earth's atmosphere changed during Precambrian time?A. The amount of carbon dioxide increased.B. Torrential rains never reached the surface until the Paleozoic era.C. The amount of oxygen increased.D. Precambrian oxygen was quickly used up by plants. HELPPPP PLEASEE!!!In 1990, Jamaica's population of 2,466,000 was expected to grow exponentially by 1.1% each year. What is the domain of the exponential function that represents the situation if1990 represents year 0?a. y _> 2,466,000b. all real numbersc. y_> 0d. x _>0 what is the answer to 3x + 7 = 82? I need help with this question this question is worth 25 points. Jennie charges $200 per passenger for a sunset sailingtour on her catamaran, while Paul charges $250 perpassenger. We can define the amount of money eachperson earns per cruise as a random variable.Let A = the amount of money Jennie earns and let B =the amount of money Paul earns.What is the mean of the sum and the mean of thedifference of the amount of money that Jennie andPaul earn on a randomly selected cruise?MA+B= $HA-B = $A = 200X and B = 250Y|--234.163PA= $730, CA = $192.62Mg = $962.5, o= $253.425-232.5272.6871692.5 Solve for x. Round to the nearest tenth if necessary. How does the dialogue in this passage move the story forward? O It suggests that Greg and Lemon Brown have a lot in common O It explains why Greg is inside the house. 0 It introduces Lemon Brown's treasure. Olt shows details about the New York setting. the quotient of k and ten Anna is 11 5/6 years old. Morgan is 1 1/3 years older than Anna and Jane is 1 1/4 years older than Morgan. How old is Jane?