If Person L invests each payment from the state at 4.4 % , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $ 10 .

Question

Want to see the full answer?

Answer 1

Question

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Trolley of the overhead crane moves along the bridge rail. The trolley position is measured from the center of the bridge rail (x = 0) is given by x(t) = 0.5t^3-6t^2+19.5t-14 : 0 <= t <= 3 min. The trolley moves from point A to B in the forward direction, B to C in the reverse direction and C to D again in the forward direction. CONTROL PANEL END TRUCK- RUNWAY BEAM- BRIDGE RAIL HOIST -TROLLEY TROLLEY BUMPER TROLLEY DRIVE LPENDANT TRACK -TROLLEY CONDUCTOR TRACK WIRE ROPE -HOOK BLOCK -BRIDGE DRIVE -END TRUCK BUMPER -RUNWAY RAIL TROLLEY END STOP -CONDUCTOR BAR PENDANT FESTOONING TROLLEY FESTOONING PENDANT CABLE PENDANT x(t)=0.5t^3-6t^2+19.5t-14 v(t)=1.5t^2-12t+19.5 a(t)=(dv(t))/dt=3t-12 Fig. T2.2: The overhead crane Total masses of the trolley, hook block, and the load attached to the hook block are 110 kg, 20 kg, and 150 kg. Damping coefficient, D, is 40 kg/s. What is the total amount of energy required from the trolley motor to move the system [Hint: Use Newton's 2nd law to obtain the…

CONTROL PANEL- BRIDGE RAIL HOIST -TROLLEY TROLLEY BUMPER -BRIDGE DRIVE END TRUCK- RUNWAY BEAM- END TRUCK BUMPER -RUNWAY RAIL TROLLEY DRIVE TROLLEY END STOP -CONDUCTOR BAR LPENDANT TRACK TROLLEY CONDUCTOR TRACK -WIRE ROPE PENDANT FESTOONING TROLLEY FESTOONING -PENDANT CABLE -HOOK BLOCK PENDANT

chool Which of the following functions describes the graph of g(x)--2√9-x²+37 9 8 7 6 4 2 -10-9-8-7-6-5-4-3-2-1 1 -1 -2 -4 -6 10 9 8 B 5 4 3 3 6 -10-9-8-7-6-5-4-3-2-1 2 3 4 6 1 -2 4 -5 -6 -8 -9 -10 10 -10-9-8-7-6-5-4-3-2-1 9 8 Lessons Assessments 6 5 4 + 2 1 1 2 3 4 5 6 8 -1 2 4 -5 -B 8 10 10 9 8 7 6 5 4 3 2 1 -10-9-8-7-6-5-4-3-2-1 1 2 3 4 5 6 B 9 10 -1 -2 -3 -5

Answer 2

Question

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Answer 6

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

Answer 7

Chapter 5.2, Problem 37E

a)

To determine

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

Answer 8

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

Answer 9

b)

To determine

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

Answer 10

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

Answer 11

c)

To determine

To calculate: The risk for Person L is that he doesn't know how long he will live or what the future interest rate will be; it might vary considerably over 20 yr. This is the risk he assumes in accepting payments of $50,000 a year over 20 yr. Person L is familiar with the formulas for accumulated future value and present value because he has studied business calculus. He calculates the accumulated present value of the income stream for interest rates of 3% , 4% , and 5% . What values does he obtain.

Answer 12

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Answer 13

d)

To determine

To calculate: Person L thinks "a bird in the hand (present value) is worth two in the bush (future value)" and decides to negotiate with the state for immediate payment of his lottery winnings. He asks the state for $750,000 . They offer $600,000 . Discuss the advantages and disadvantages of each sum. Person L finally accepts $675,000 . Is this a good decision? Why or why not?

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 5.1 - In Exercises 1-14, is the price, in dollars per...Ch. 5.1 - In Exercises 1-14, is the price, in dollars per...Ch. 5.1 - In Exercises 1-14, D(x) is the price, in dollars...Ch. 5.1 - In Exercises 1-14, is the price, in dollars per...Ch. 5.1 - In Exercises 1-14, D(x) is the price, in dollars...Ch. 5.1 - In Exercises 1-14, D(x) is the price, in dollars...Ch. 5.1 - In Exercises 1-14, D(x) is the price, in dollars...Ch. 5.1 - Prob. 8E Ch. 5.1 - Prob. 9E Ch. 5.1 - Prob. 10E

If Person L invests each payment from the state at 4.4 % , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $ 10 .

Solution Summary: The author calculates the accumulated future value of the income stream at 4.4%, compounded continuously.

Videos

To calculate: If Person L invests each payment from the state at 4.4% , compounded continuously, what is the accumulated future value of the income stream? Round your answer to the nearest $10 .

To calculate: What is the accumulated present value of the income stream at 4.4% , compounded continuously? This amount represents what the state needs to invest at the start of its lottery payments, assuming the 4.4% interest rate holds.

Want to see the full answer?

Chapter 5 Solutions