A plaintiff in a successful lawsuit was awarded a judgment of $4800 per month for 5 years. The plaintiff has the need of a fairly large sum of money immediately for an investment of his own, and has offered the defendant the opportunity to pay off the award in a lump-sum amount of $110,000. If the defendant accepts the offer and pays the $110,000 now, what rate of return will the defendant have made by not paying the 60 monthly amounts?
What will be an ideal response?
0 = -110,000 + 4800(P/A,i%,60)
(P/A,i*%,60) = 22.9167
Use interpolation or spreadsheet
i* = 3.93% per month
You might also like to view...
The typical thickness of plastic laminate used on countertops is _____.
a. 1/32" (0.8 mm) b. 1/16" (1.6 mm) c. 3/16" (4.8 mm) d. 1/4" (6.4 mm)
The coarsest hair comes from lambs
Indicate whether the statement is true or false.
The maximum horsepower production by a motorcycle at sea level is 55 horsepower. What is the maximum horsepower output by this motorcycle in Spokane, Washington? The elevation in Spokane is about 2,250 feet. Round to the nearest horsepower
What will be an ideal response?
A datum is considered a theoretically exact ____ from which dimensions for related features are established.
A. surface B. center plane C. point D. axis E. all of the above