Agreement to offer personal services

Assignment Help Business Economics
Reference no: EM13859499

From by Engineering Economics class:

A person signs an agreement to offer personal services over a period of five years. The company that hires him, offered to pay him an advance of $30,000 for his professional services at the moment of signing the contract and five additional payments to be made at the end of each of the five years of the contract, for a total of six payments. The first of these five payments will be for $45,000 and each subsequent payment will be $20,000 higher than the previous payment (year). The person to be hired prefers that the six payments are made on those dates (one payment at the moment of signing the contract, and the other payments made at the end of each year, for the five years of contract) but that all payments be made for the same amount of money.

a) Determine the amount that each of those uniform payments (annuities) must be, considering an annual interest rate of 10%.

b) Determine the cumulative value of the six annual payments at the end of the third year as of the date of signing the contract.

Reference no: EM13859499

Questions Cloud

Induces firm to use cross-subsidization strategy : The special demand structure that induces a firm to use a cross-subsidization strategy is:
Nature of honor and respect in the ancient world : Read The Iliad as if you are an archaeologist who has just discovered an ancient text which gives you a window into the ancient world. You hold this fragile treasure in your hands, and begin to read, knowing that you must suspend your modern perspect..
Perfectly competitive firm faces : A perfectly competitive firm faces a:
Pricing strategies-special cost and demand structures : Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
Agreement to offer personal services : A person signs an agreement to offer personal services over a period of five years. The company that hires him, offered to pay him an advance of $30,000 for his professional services at the moment of signing the contract and five additional payments ..
Which pricing strategy is the management using : Snow peak Ski Resort offers a price for a lift ticket that is barely over its marginal cost, but the high equipment rental fee keeps generating big profits. Which pricing strategy is the management using?
Risk-neutral individual : A risk-neutral individual would:
Consumer spends more time searching for good : A consumer spends more time searching for a good when her reservation price is:
Sums up the anti-evolutionists position : After reviewing the Scopes Trial Website, which document/argument do you believe best sums up the anti-evolutionists' position? Which document/argument do you believe best sums up the evolutionists' position? How does each side see the other?

Reviews

Write a Review

Business Economics Questions & Answers

  Fiscal approach was expansionary because the full-employment

Fiscal approach was expansionary because the full-employment budget deficit increased from one yr to the next.

  Discuss pros and cons of having a high cigarette excise tax

If a political candidate said that if she were elected to Congress, she would work toward cutting federal government spending by one-third over the next four years; would she stand much chance of fulfilling her promise? Why or why not? Discuss the pr..

  Accused of paying bribes to the government of a host country

A multinational company is accused of paying bribes to the government of a host country to obtain permission to build a production factory. the public relations manager of the company defends the company's actions as being ethically sound; he states ..

  Develop a brief presentation assessing the economic

Develop a brief presentation assessing the economic, legal, and political environments of your country, Briefly describe the country's history and its relevance to its current political, economic, and legal environment

  Production effect of growth in the labor force

In a two-factor, two-good heckscher-ohlin context, illustrate and explain "production effect" of growth in the labor force in a relatively capital-abundant country, other things equal.

  Mining for coal leaves large amounts of rubble

In some states, mining for coal leaves large amounts of rubble, which poses flooding problems; causes land damage also is unsightly.

  Pool of utilized textbooks grows further during second yr

Assume that the pool of utilized textbooks grows further during the second year of the latest edition

  Importance to use price index adjustments

How do the GDP per capita change after accounting for price indices. Why is it important to use price index adjustments.

  The variable cost every unitcompany decided to raise price

A company currently sells 60,00 units a month at $10 every unit. The variable cost every unit is $6. The company decided to raise the price about 10%.

  Effective method of destroying

According to Friedman, is the most effective method of destroying a free market?

  What are implications for investors and for public policy

Besides raising taxes and issuing debt, the U.S. government (Treasury Department) can also secure funds by borrowing directly from the FED. What is the potential danger of this route? What are the implications for investors and for public policy of e..

  Write the marginal revenue function of the dominant firm

What price should the leader charge to drive all the small firms out of the market? Write the marginal revenue function of the dominant firm.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd