Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not actually be paid for another 3 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 27%. How much would he receive if he takes this deal? Round your answer to the nearest dollar.
Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not actually be paid for another 3 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 27%. How much would he receive if he takes this deal? Round your answer to the nearest dollar.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 6P
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Question
![Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will
not actually be paid for another 3 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 27%. How much would he receive if he takes
this deal?
Round your answer to the nearest dollar.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc09313a-2a48-43ac-9200-10c3e78cc6d1%2F73b8ccb0-a122-4954-8d8e-b5511a62d5b7%2Ftbhbggj_processed.png&w=3840&q=75)
Transcribed Image Text:Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will
not actually be paid for another 3 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 27%. How much would he receive if he takes
this deal?
Round your answer to the nearest dollar.
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