What is the required upfront deposit in given conditions

Reference no: EM131798124

Question: Two rival football fans have made the following wager: if one fan's college football team wins the conference title outright, the other fan will donate $2,200 to the winning school. Both schools have had relatively unsuccessful teams, but are improving each season. If the two fans must put up their potential donation today and the discount rate is 9% for the? funds,

a. what is the required upfront deposit if we expect a team to win the conference title in 4 years?

b. what is the required upfront deposit if we expect a team to win the conference title in 12 years?

c. what is the required upfron depostit if we expect a teach to win the conference title in 18 years?

Reference no: EM131798124

Questions Cloud

Samples represent independent random samples : Specify the competing hypotheses to determine whether the median of Population 1 is greater than the median of Population 2.

Why can an investor buy insurance on a risk : Why can an investor buy insurance on a risk that the investor does not actually have because the investor did not actually make the investment that is insured?

What are the benefits of using this approach in conjunction : Search for an article related to your group health issue that incorporates complementary medicine as a method for treating the health issue

Calculate the mean and standard deviation : The following data are provided for two independent samples: W = 700, n1 = 25, and n2 = 20. Suppose the distribution of W is approximately normal.

What is the required upfront deposit in given conditions : Two rival football fans have made the following wager: if one fan's college football team wins the conference title outright, the other fan will donate $2,200.

Calculate the mean and standard deviation : Calculate the mean and standard deviation of the distribution of W.

Determine company predetermined overhead application rate : BBBC charges any under- or overapplied overhead to Determine the company's predetermined overhead application rate

Assess managing diversity in the workplace : Analyze the role of innovation in executing change strategies.Explain the benefits and the opportunity that a more diverse workforce will create.

Summarizes the topic and the effect of issue on community : Summarizes the topic and the effect of the issue on the community. Includes visual aids and outside resources. Use effective language to persuade your audience.

User Account

All Pages