HomeworkLib
Question

Import Cars is planning a big party to highlight the new models for the next year....

Import Cars is planning a big party to highlight the new models for the next year. They are considering offering a $5,000 grand prize to one lucky winner.  $1,000 will be paid on the day of the drawing. The remaining $4,000 will be paid in four annual payments of $1,000 starting 1 year after the drawing. How much is this prize really worth at a 6 percent rate of return?

a. $4,208.16

b. $4,309.13

c. $4,465.11

d. $4,212.36

e. $4,390.74

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Import Cars is planning a big party to highlight the new models for the next year....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A local magazine is offering a $5,000 grand prize to one lucky winner. The prize will...

    A local magazine is offering a $5,000 grand prize to one lucky winner. The prize will be paid in five annual payments of $1,000 each, starting one year after the drawing. How much would this prize be worth to you if you can eam 8 percent on your money? 3 otao 30 Multiple Choice o sa B2345 o 54522 вв o $3,99271 o О Азт213 o О 533123

  • RT ANSWER. Write your answer in the space provided in the far-right column. Show a 32)...

    RT ANSWER. Write your answer in the space provided in the far-right column. Show a 32) 32) A local magazine is offering a $2,500 grand prize to one lucky winner. The prize will be paid in four annual payments of $625 each, starting one year after the drawing. How much would this prize be worth to you if you can earn9 percent on your money?

  • Over the past year, a fim decreased its current assets and increased its current abies As...

    Over the past year, a fim decreased its current assets and increased its current abies As a result, the firm's networking capital had to increase had to decrease remained constant could have either increased decreased, or remained constant was unaffected as the changes occurred in the firm's current accounts QUESTIONS A local magazine is offering a 55,000 grand prize to one lucky winner. The prize will be paid in five annual payments of $1.000 each, starting one year after the...

  • 1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on...

    1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. She expects that the drug’s profits will be $2 million in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the...

  • This year Evan graduated from college and took a job as a deliveryman in the city....

    This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $68,500 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses below: Cost of moving his possessions to the city (125 miles away) Interest paid on accumulated student loans Cost of purchasing a delivery uniform Contribution to State University deliveryman program $1,200 2,840 1,440 1,320 Calculate Evan's AGI and taxable income...

  • The PTL CLub - Jim and Tammy Faye Bakker I need help with the discussion questions listed at the bottom... THE PTL CLUB...

    The PTL CLub - Jim and Tammy Faye Bakker I need help with the discussion questions listed at the bottom... THE PTL CLUB Jim and Tammy Faye Bakker launched the PTL Club in January 1974. This show was one of the most successful television ministries for more than a decade. The broadcast of the PTL Club utilized almost 200 television stations to reach a national audience of approximately 12 million viewers. PTL stood for both “Praise the Lord” and “People...

  • Create General Journal Entries for the following entries. Here is what it should look like in Ex...

    Create General Journal Entries for the following entries. Here is what it should look like in Excel (as an example): As for the previous month's entries, here they are with the General Journal I made. BEACON LUMBER, MONTH OF DECEMBER Dec Beacon purchases a general liability insurance policy for $1,200, paying cash. The term of the policy is one year, from Dec 1, 2009 through Nov 30, 2010. Dec Beacon purchases a forklift for S10,000, paying half in cash and...

  • Create General Journal Entries for the following entries. Here is what it should look like in Ex...

    Create General Journal Entries for the following entries. Here is what it should look like in Excel (as an example): As for the previous month's entries, here they are with the General Journal I made. BEACON LUMBER, MONTH OF DECEMBER Dec Beacon purchases a general liability insurance policy for $1,200, paying cash. The term of the policy is one year, from Dec 1, 2009 through Nov 30, 2010. Dec Beacon purchases a forklift for S10,000, paying half in cash and...

  • Rush Inuit is an impulsive, fly-by-the-seat-of-his-pants kind of guy. His best friend, Stu Earley, is the...

    Rush Inuit is an impulsive, fly-by-the-seat-of-his-pants kind of guy. His best friend, Stu Earley, is the exact opposite – cautious and reluctant. The two are recent UNCG graduates who roomed together all … ahem … eight years. You know who they are even though they graduated last year because everyone on campus knows Rush and Stu – they’re legends on the social scene. To make ends meet during college, Rush and Stu organized fun trips to exciting destinations and charged...

  • Comprehensive Problem 6-52 (LO 6-1, LO 6-2, LO 6-3) [The following information applies to the questions...

    Comprehensive Problem 6-52 (LO 6-1, LO 6-2, LO 6-3) [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2019 To the friendly student tax preparer: Hi, it’s Shady Slim again. I just got back from my 55th birthday party, and I’m told that you need some more information...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT