Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years, with the first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave her as well off financially as with the annuity?
A. $225,367
B. $237,229
C. $249,090
D. $261,545
E. $274,622
Answer: B
You might also like to view...
Awareness tends to be greatest when firms have highly similar resources and compete in multiple markets.
Answer the following statement true (T) or false (F)
After years working in a local restaurant, Mika left to start her own catering business. Since she is self-employed, Mika is covered by OSHA.
Answer the following statement true (T) or false (F)
Gaven Griffith of Griffith's department stores tells his marketing director that he is tired of the constant price-centered advertising by the firm's agency. "We have the best customer service in town, and I feel that is what we should be hanging our hats on," he states. This statement is most appropriate for use in which of the following stages of campaign development?
A. Determining the appropriations B. Creating the platform C. Identifying the target D. Defining objectives E. Developing the media plan
Beth Williams is an exercise physiologist who serves as an expert consultant for Women's Walkers, Inc, a shoe company specializing in manufacturing walking shoes for women. Dr. Williams is paid an annual consulting fee along with additional fees for drafting reports and making media and public appearances for the company. Executive Woman, a national magazine, has asked Dr. Williams to serve as
one of three experts on a panel that will evaluate the full market range of women's walking shoes. Dr. Williams will be paid a consulting fee by Executive Woman as well. a. Dr. Williams has a conflict of interest and should decline the Executive Woman offer. b. Dr. Williams can participate in the Executive Woman panel so long as her affiliation with Women's Walkers is disclosed. c. Dr. Williams can participate in the Executive Woman panel if she waives her fee. d. Dr. Williams is an academic with no conflict of interest and can participate in the Executive Woman panel.