Inheritance is guaranteed money

Assignment Help Business Economics
Reference no: EM131808347

Suppose Donald is expecting an inheritance that will pay him $85,000 at the end of each year for the next 40 years. Since his inheritance is guaranteed money, the bank offers him $1.9 million now? Should Donald take the money now or take the annuity if the interest rate is 3%. Explain

Reference no: EM131808347

Questions Cloud

Pros and cons of online learning vs traditional learning : Describe the pros and cons of online learning vs traditional learning.
Computing the critical t value times of binomial fraction : Verify this claim in a particular case by computing the critical t value times the standard error of the binomial fraction p for the case of a candidate.
What is the autarky price and quantity of books produced : Suppose that the domestic demand and supply for books in a small open economy are given by:
What is the history of right to work laws : What is the history of 'Right to Work' laws?
Inheritance is guaranteed money : Suppose Donald is expecting an inheritance that will pay him $85,000 at the end of each year for the next 40 years. Since his inheritance is guaranteed money
Relationship between coaching-management counseling : Explain in detail the relationship between coaching, management counseling, and discipline.
Potential gain from trade for the first unit : 1) The potential gain from trade for the first unit of the good they exchange is:
Managers and leaders effectively manage change : What specific tools, behaviors, routines can be used in order to help managers/leaders effectively manage change? Provide specific examples.
Production of a manufactured good : Suppose the figure to the right represents the production of a manufactured good. Production of this good generates volatile organic?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the optimal quantity of labor to supply

From a driver's viewpoint, what is the optimal quantity of labor to supply?

  What would be the consumer surplus in the market

Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there is a price floor of 2.94, what would be the consumer surplus in the market?

  The price change increases the quantity demanded

Consider a market with network? externalities, where demand is Q = 100 - 1P. Let price initially be $40, where current demand without network externalities would be Q1 = 80.00 - .50P. With network? externalities, the price change increases the quanti..

  Financial investors actions on real interest rates

As the United States economy moves out of a recession, U.S. financial investors increase their purchases of stocks that are expected to earn a higher rate of return than they are currently earning on their savings account deposits. Explain how the ch..

  What is your return assuming no dividends are paid

Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your positi..

  Sovereignty in monetary and fiscal policies

The economic union can be beneficial but it also cost a nation its sovereignty in monetary and fiscal policies. For instance, Greece could not use monetary policies to help boost its economy. Do you think Greece would have been better off not joining..

  Describe the extent of economic integration

Describe the extent of economic integration, specifically mentioning the country’s membership(s) within regional trade agreements and the benefits they bring to the country.

  Estimate value per share-using the dividend discount model

KimberlyClark, a household product manufacturer, reported earnings per share of  3.2 $ in 2014 and paid dividends per share of $1.7  in that year. The firm reported depreciation of $315 million in 2014 and capital expenditures of $475 million. Estima..

  Hopefully entice more consumption of your product or service

You are responsible for creating an ad that will hopefully entice more consumption of your product or service. Describe for me a couple of items that you want to say to your consumers through your ad?

  Long term government bond yields

Bill Bulge owned a grocery store in Missouri. In order to finance some inventory, he borrowed $3000 from Big Bucks Bank. The written agreement called for 20% interest to be paid at a time when long term government bond yields were 12%. At maturity, B..

  Find a symmetric nash equilibrium in mixed strategies

The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.

  Equilibrium price-quantity in market usually produces

The equilibrium price and quantity in a market usually produces allocation efficiency because marginal benefit and marginal cost are equal at that point. Explain how a market for human organs would affect the supply curve and equilibrium price and qu..

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