Accept now for future inheritance

Assignment Help Business Economics
Reference no: EM131806665

A company in Texas will "buy" inheritances before they are actually received. If you will receive $20,000 when a rich aunt dies, how much would you accept now for this future inheritance? Money is worth 8% to you, and you "guesstimate" that your aunt will live 6 more years. (Answer: $12.60K)

Reference no: EM131806665

Questions Cloud

Nominal interest compounded monthly : If Paul's agent invests the total sum at 12% nominal interest compounded monthly, how much will Paul have at the end of 2 years?
Major logistics challenges faced by unilever in initiative : What, in your opinion, would be the major logistics challenges faced by Unilever in this initiative?
Determine pension expense to be reported on income statement : Chicago contractors got $5,400,000 contract to construct a school building for the City of Chicago
Determine when we should allow impaired newborns to die : The criteria needed to determine when we should allow impaired newborns to die (forgoing treatment) conditions where we should continue treatment.
Accept now for future inheritance : A company in Texas will "buy" inheritances before they are actually received. If you will receive $20,000 when a rich aunt dies, how much would you accept
Discuss the role of the advance practice nurse : Discuss the role of the advance practice nurse in patient education to prevent Adverse Drug reactions.
What annual net revenue must each jet produce : Southwest Airlines (SWA) is planning to expand its fleet of jets to replace some old planes and to expand its routes. It has received a proposal from Boeing.
Interpret the standard error of the estimate : Interpret the standard error of the estimate? What information does this value provide to the researcher?
Organization structure facilitate speed-collaboration : How can the organization structure facilitate speed, collaboration, and teamwork?

Reviews

Write a Review

Business Economics Questions & Answers

  Elastic portion of the linear demand facing the firm

Which of the following statements is correct? a. The firm’s profit maximizing level of output will be found only in the elastic portion of the linear demand facing the firm. b. The firm’s profit maximizing level of output will be found only in the in..

  Demand curve would best represent monopolistic competitor

Which demand curve would best represent a monopolistic competitor?  If demand curve D2 represents a monopolistic competitor and demand curve D1 represents a perfect competitor, then. If demand curve D2 represents a monopolistic competitor and demand ..

  Character faces in hamlet

Describe a dilemma that one character faces in Hamlet that requires a humanistic approach to solve, and then, describe how you would

  Find the free trade levels of steel production

Suppose the demand for steel is P=720-8Qd and the supply of steel is P=360+8Qs. The home country is small in the world steel market and the world price of steel is $400. Find the free trade levels of steel production and consumption as well as steel ..

  Explain why monopolist marginal revenue curve lies

Explain why a monopolist's marginal revenue curve lies bellow the demand curve. Explain why this leads the monopolist to produce an inefficient quantity.

  Economists often assume that insurers set premiums

Economists often assume that insurers set premiums (nearly) equal to the AFP for that plan. Is that an accurate assumption? Is a higher “load” on insurance premiums necessarily a bad thing for consumers? When might a higher load be a sign of problems..

  International trade could increases economic welfare

How international trade could increases economic welfare, when the world price of a tradable good is lower than the domestic price.

  Calculate the percent over- or under-valuation

Suppose a Big Mac costs 500 in Japan and $4.25 in the US, at a time with the XR is 112/$. Using the Big Mac theory of PPP, is the yen over-valued vs. the US$ or under-valued? Calculate the % over- or under-valuation. Show calculations.

  Instant access to markets-financial elements

You are hired by a financial company in New Zealand and you have instant access to markets. You would like to lock in a 3-month borrowing cost in NZ$ for your client. You consider a NZ$ 1x4 FRA. But you find that it is overpriced as the market is thi..

  What is the industry supply curve

Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply curve?

  Market structure with many competitors and substitute foods

An increased supply of U.S. dollars on the foreign exchange market, all else equal, will result in an appreciation of the U.S. dollar. Although McDonalds operates in a market structure with many competitors and substitute foods, it often engages in _..

  Your course in business economics

Jenny, your niece, is a smart high-school student who wants to make intelligent choices for her future. Hearing of your course in business economics,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd