Head & Shoulders shampoo insured a spokesman football player’s long hair for $1 million with Lloyd’s of London. The insurance payout would be triggered if he lost at least 60% of his hair during an on-field event. The insurance company placed the odds of a payout at 1% in year 5. Determine how much Head & Shoulders had to pay in a lump-sum amount for the insurance policy if Lloyd’s of London wanted a rate of return of 20% per year, compounded quarterly.

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is…

A: Future worth is used to determine the value of an asset in the future.

Q: TMI Systems, a company that customizes software for construction cost estimates, repaid a loan…

A: A=P1+R×T100Where, A=AmountP=Principal R=Rate of interest and T=Time in years

Q: The future worth in year 10 of a geometric gradient series of cash flows was found to be $80,000. If…

A: The geometric gradient series of cash flow can be equated as follows.

Q: Thermal Systems, a company that specializes in odor control for wastewater treatment plants, made…

A: The deposit (D) is $100,000. The deposit increases (I) $25,000 by per six months. The interest rate…

Q: The future worth in year 10 of a cash flow series that starts in year 2 at $100,000 and decreasing…

A: The future value of the cash flow is calculated as follows.

Q: A construction management company is examining its cash flow requirements for the next few years.…

A: Future worth represent the worth of the present asset with determined rate of growth , if the Future…

Q: Citizens Bank of Toronto advertises an APR of 12% compounded monthly for collateral loans. What is…

A:

Q: AutomationDirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow…

A: Interest rate = 10% Planned spending is $7000 for two years, $9000 for four years and $15,000 for…

Q: Emerson Processing borrowed $900,000 for in- stalling energy-efficient lighting and safety equipment…

A: here we can calculate the folowing terms as follow

Q: A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster…

A: Present worth: Present worth can be calculated as follows:

Q: You earn SEK 10,000 for three years. After these three years, you have SEK 13,000. The interest rate…

A: Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to…

Q: Determine the size of your investment account 30 years from now (when you plan to retire) if you…

A: Given information: A = amount deposited every year = $12,000 t = time period in years = 30 r = 10%…

Q: Automationdirect, which makes 6-inch TFT color touch screen HMI panels, is examining its cash flow…

A: Expenditure two years from now is $7,000 Expenditure four years from now is $9,000 Expenditure five…

Q: Acme Manufacturing Company is considering purchasing a maintenance contract for its new waste…

A: To Compute the uniform annual payment, first compute the presents worth of the contract amount as…

Q: The owner of Hickory Bar-B-Que plans to open a new restaurant in 4 years at a cost of $200,000. Find…

A: Look across the top of the sinking fund table for 3% and down side for 8 periods to find…

Q: You are a well-paid engineer with a well-established international corporation. In planning for your…

A: Hi student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: The TerraMax truck currently being manufactured and field tested by Oshkosh Truck Co. is a…

A: The nominal interest rate or money interest rate can be any declared rate of interest per annum…

Q: The company must make $ its investment plus a return of 15% per year. million annually in years 1…

A: Present worth is the term that is used to describe the worth of the money for today as compared to…

Q: A small oil company wants to replace its Micro Motion Coriolis flowmeters with Emerson FSeries…

A: Money interest rate (i) is any given or declared rate of interest. Present value (PV) is the…

Q: Loadstar Sensors is a company that makes load/ force sensors based on capacitive sensing technology.…

A: Present value can be calculated as follows:

Q: An interest rate of 2% per quarter, compounded continuously, is closest to an effective semiannual…

A: Since the interest rate is 2% per quarter, the semiannual rate is . The effective interest rate can…

Q: What is the difference between APR and APY? Which one is used in interest factor formulas, tables,…

A: The annual percentage rate (APR) is the measure of annual interest rate. It is same as nominal rate…

Q: Equipment maintenance costs for manufacturing explosion-proof pressure switches are projected to be…

A: Assuming 1 year = 26 weeks i per week = 10%/ 26 = 0.3846153% per week Effective interest rate = (1 +…

Q: Videotech specializes in online security software development. It wants to have $65 million…

A: a.) Interest rate and the number of time year can be calculated as follows: Since the interest rate…

Q: he present sum needed to provide for an annual withdrawal of $2,000 for 20 years beginning 5 years…

A: Given: Annual withdrawal=$2000 Number of years=20 Interest rate=7%

Q: The optical products division is planning a $5 million building expansion for manufacturing its…

A: The present value of an annuity is the current worth of a cash flow series at a certain rate of…

Q: A broadband service company borrowed $2 million for new equipment and repaid the loan in amounts of…

A: Initial Amount = 2000000 Cash Flow in year 1 nd 2  = 209,000 In year 3 = 2200000

Q: A construction company plans to accelerate the payments on an equipment loan as production…

A: The annual value of owning, operating, associated maintaining an quality over its entire life is…

Q: State the purpose for each of the following built-in spreadsheet functions:a. FV(i%,n,A,P)b.…

A: Part a)  FV(i%,n,A,P) function in excel finds the future value F . The FV Function Excel formula is…

Q: A northern California consulting firm wants to start saving money for replacement of network…

A: Most people agree that receiving money now is preferable to obtaining it later because of the time…

Q: McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund…

A: The deposit (D) is $500,000 in each of the last 5 years. Time period 1 (n1) is 4 years. Deposit…

Q: An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the…

A: P = $12,000F =?i = 8% per yearn = 24 years.standard notation: Determine F, using the F/P factor for…

Q: A company expects the cost of equipment maintenance to be $5,000 in year one, $5,500 in year two,…

A: Given cost in 1st year = 5000 $ Constant increase in cost  = 500 $ Time = 15 years Interest rate = 5…

Q: Determine the exact simple interest on $5000 invested for the period from January 15,1996 to October…

A: Given informations: Principal amount = $5000 Interest rate = 18%

Q: The National Institute on Drug Abuse has spent $15 million on clinical trials to find out whether…

A: The given information: Interest rate =8% Time period = 5 Gradient = 15%

Q: A Texas chemical company had to file for bankruptcy because of a nationwide phaseout of methyl…

A: (a) Investment (I) is $50,000,000. Interest rate is 2% per month compound continuously. Time period…

Q: Lysol specializes in odor control made deposits of PhP 10,000 at the end of year 2, PhP 25,000 at…

A: FV  = PV*(1+r/2)2*n Where, FV = Future value PV = Present value r = rate of interest n = time period

Q: A structural engineering consulting company is examining its cash flow requirements for the next 6…

A: here we have different cashflow with different time with compounded semiannually , so here we…

Q: The by-product department of Iowa Beef has the revenue stream shown. If the interest rate is an…

A: Given: Interest rate effective at = 12% To Find: The annual worth of the revenues for years 1…

Q: What lump-sum amount of interest will be paid on a P500,000 loan that was made on August 1, 2012,…

A: The formula is used to calculate sum amount of interest.  SI = Principle × Rate of interest × time…

Q: A construction management company is examining its cash flow requirements for the next few years.…

A: The Answer is given below

Q: The first cash flow in the arithmetic gradient series is _____

A: In a market, when an individual wants to make an investment, he tries to make an estimation of…

Q: The highway department expects the cost of maintenance of a piece of heavy construction equipment to…

A: Cash flow refers to the inflow and outflow of cash in a project or a business. The present worth of…

Q: How much is the interest that will be paid on a Php25,000 loan that was made on May 1, 2002 and…

A: Given information: Principal amount (P): Php25,000 Interest rate (R): 8% per year Time period (T):…

Q: In order to establish a contingency fund to replace equipment after unexpected breakdowns, a…

A: Given, Deposit = $100,000 at t0, Deposit = $150,000 at t2. Account grow at rate = 15% As per the…

Q: An entrepreneurial electrical engineer approached a large water utility with a proposal that…

A: Installments: It is the amount of cash paid in little parts in a fixed timeframe. A solitary…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The formula for present value (PV) is as follows: PV=FV×1(1+r)n , where FV is the future value, r is…

Q: What is the equivalent annual cost in years 1 through 8 of a contract that has a first cost of…

A: Given: First Cost=$72000 Annual cost from Year 3-8=$16000 Interest rate=14%

Q: Determine the exact simple interest on P5,000 for the period from Jan 15 to Nov 28, 1992 if the rate…

A: The payment to a depositor or lender from a deposit-taking financial institution or a borrower of an…