Suppose you won a $75,000 after-tax cash prize in the lottery. you want to start a new business that you think will lose money for a while, after which it will be up and running and bringing in big bucks. you plan to invest the funds immediately in securities that are expected to earn 10% per year. suppose you would need only $20,000 per year during the start-up period. how long could you operate before you would require cash from the new business, i. e., how long could you receive payments of $20,000 per year? the first withdrawal will be made a year from today, and your answer will contain a fraction of a year.

how long could you receive payments of $20,000 per year?

for almost 5 years. (4.93)

It could be made 4.93 withdrawals of 20,000

which means 4 of 20,000

and one for 9% of 20,000 = 18,600

Explanation:

we should consider how many years can the prize fund the new business start-up period of 20,000 dollars per year

considering it can yield 10% per year.

we need to sovle for time in an annuity:

C  $20,000.00

time: n years

rate0.10

PV$75,000.0000

Now, we solve for what we can:

And apply logarithmics properties to solve for n

-4.931305661

4.93

answer; management is about coping complexity and leadership is about coping with change; i believe this is correct; ///good luck                                          

(b) management: leadership

fractionally backed paper money

fiat money

paper money

metallic money