Suppose that a week after Vollmer gave Lang the funds, she sent him an e-mail containing the terms of their loan agreement with her named typed at the bottom. Lang did not respond to the e-mail. Is this sufficient as a writing under the Statute of Frauds?

Answers

Answer 1

According to the Statute of Fraud, parties entering into a legal agreement must put their agreement in writing. This is one of the fundamental elements of a legal agreement.

Additionally, it needs to be properly signed by both parties to the agreement, or at the very least, legal agreement needs the signature of the person paying for the products or services.

First off, in this situation Vollmer didn't write down the terms and conditions on paper; instead, she sent a message via email, which the legal agreement could not sign and approve. In the end, since the receiving party cannot sign it, the contract is invalid under the Statute of Fraud. Since Lang is being released from the financial obligation, his signature is crucial in this situation.

Thus, a written agreement is not legally binding.

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Related Questions

Which is an extracurricular activity?
OA. Playing video games with friends
B. Playing high school volleyball
OC. Working at a local diner
OD. Taking an extra year of math
SUBMI

Answers

Option B is an extracurricular activity!

Volleyball in high school is an extracurricular activity. As a result, choice (B) is accurate.

What do you know about extracurricular activity?

A student-performed activity that is outside the scope of the regular curriculum of a school, college, or university is referred to as an extracurricular activity (ECA), extra academic activity (EAA), or cultural activity.

Such endeavors are typically social, charitable, voluntary (as opposed to required), and frequently involve people of a similar age. Although student-led projects, such independent publications, are frequently seen, students and staff manage these activities under academic sponsorship.

However, occasionally, these activities are also introduced in the classroom by the teachers and school principals.In the USA, 70% of teenagers participate in extracurricular activities, according to a group study that polled students of school age for the National Longitudinal Study of Adolescent Health.

Other studies have shown that participating in extracurricular activities lowers the risk of dropping out of school, lowers the risk of committing a crime, and increases educational retention, success, and academic achievement

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Implementing the strengthening families approach into your ECE program requires

Answers

Parental resiliency, social ties, tangible support in times of need, understanding of parenting and child development, and social and emotional competency in children are necessary for implementing the strengthening families approach into your ECE program.

The foundation of effective family-centered practice is working with families and young people. Caseworkers must be adept at communicating with children, teenagers, and families to assist them develop interpersonal, parenting, and problem-solving skills in order to successfully conduct assessments, case planning, and case management. Engaging families and youth, offering direct assistance with difficulties the family is facing, including counseling, parent coaching, and modeling, and continuing to assess the family's needs, strengths, and progress are all components of effective work with families.

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In cell B21, insert a function to calculate the median attendance for the year 2022

Answers

The total number of days of students' attendance is divided by the total number of days in the regular school year.

An attendance rate of 95% is generally considered good; this allows for children to miss 9.5 days across the school year. Persistent absence (PA) is defined as an attendance rate of 90% or below.

Divide the SUM TOTAL of Days in attendance by the SUM TOTAL of Days of membership for the school or district. 5. Multiply the statistic x 100 and round the number to the nearest tenth. This is your school or district's overall attendance rate.

Click on cell B21 and enter the below function and select an appropriate criterion.

To find the median in a range of cells, use the MEDIAN function.

Syntax for finding min is: MEDIAN(number1, [number2]

=MEDIAN(from cell to cell).

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The 2017 balance sheet of Kerber’s Tennis Shop, Incorporated, showed $2.2 million in long-term debt, $710,000 in the common stock account, and $6.4 million in the additional paid-in surplus account. The 2018 balance sheet showed $3.9 million, $905,000, and $8.4 million in the same three accounts, respectively. The 2018 income statement showed an interest expense of $200,000. The company paid out $610,000 in cash dividends during 2018. If the firm's net capital spending for 2018 was $850,000, and the firm reduced its net working capital investment by $155,000, what was the firm's 2018 operating cash flow, or OCF?

Answers

The firm's 2018 operating cash flow, or OCF is -$2,219,500

How do we determine the operating cash flow?

The operating cash flow can be determined from the cash flows from assets formula where cash flow from assets is the operating cash flow minus net capital spending and net change in working capital

cash flow from assets=operating cash flow-net capital spending+ net increase in working capital

Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders

Cash Flow to Creditors = Interest Expense - Net New Long-term Debt

Cash Flow to Creditors=$200,000-($3,900,000-$2,200,000)

cash flow to creditors=$200,000-$1700,000

cash flow to creditors=-$1,500,000

Cash Flow to Stockholders = Dividends - Net New Equity

cash flow to stockholders=$610,000-($905,000+$8,400,000-$710,000-$6,400,000)

cash flow to stockholders=-$1,585,000

Cash Flow from Assets =-$1,500,000-$1,585,000

Cash Flow from Assets =-$3,085,000

operating cash flow=unknown(assume it is x)

net capital spending=$850,000

net increase in working capital=$155,000

-$3,085,000=x-$850,00-$155,000

x=-$3,085,000+$850,000+$155,000

x=OCF=-$2,219,500

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Johnny Rockefeller had a bad credit rating and went to a local cash center. He took out a $100.00 loan payable in two weeks for $109.50. What is the percent of interest paid on this loan?

Answers

15% of interest paid on this loan. We are given that Johnny Rockefeller had a bad credit rating and went to a local cash center.

Loan amount of Johnny Rockefeller = $100

He paid the amount  in the  two weeks = $115

Amount of interest paid = $115-$100=$15

Let x% is  rate of interest.

So, the x% times 100 = 15

x = 15

So, 15% of interest paid on this loan.

What is the amount of hobby paid on a loan?

The hobby rate is the quantity a lender expenses a borrower and is a share of the principal—the quantity loaned. The activity rate on a mortgage is generally stated on an annual basis recognized as the annual share rate (APR).

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How many business start ups fail in their first year?

Answers

In the first year, 10% of startups fail.

What causes a startup to fail?

According to business owners, reasons for failure include a lack of funding, being in the wrong market, a lack of research, bad alliances, ineffective marketing, and a lack of industry knowledge. Success can be attained by goal-setting, accurate study, enjoyment of your work, and perseverance.

Which company model is most likely to fail?

Although the construction sector is predicted to increase by 13 percent, a staggering 25% of businesses fail within the sector. The failure rate in the transportation sector is the same. In both industries, 35% of businesses fail by their second year, and 60% by their fifth.

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What is E-Procurement? [2 Marks] 1b. What are the Benefits of E-Procurement? [8 Marks] 2. You have have been appointed as an ICT personnel in an organisation mit​

Answers

E-procurement is the exchange of goods and services between businesses, consumers, and the government over the Internet and other information and networking platforms including enterprise resource planning and electronic data interchange.

benefits of the electronic procurement procedure.

E-procurement helps you save money by avoiding duplicative purchases, taking advantage of volume discounts, and avoiding expenses related to paper-based systems (for example, the cost of stamps to mail your paperwork).Openness in spending By performing your procurement electronically, you can guarantee that your procurement methods follow your policies because it will be simpler to produce and analyze reports on your procurement systems.Greater Productivity E-procurement takes less time than conventional procurement once you've gotten the hang of the technology. Reusable tender submission is made simpler by having your records maintained online. Meanwhile, using templates allows for quicker completion of papers.

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The Faulk Corp. has a bond with a coupon rate of 5 percent outstanding. The Gonas Company has a bond with a coupon rate of 11 percent outstanding. Both bonds have 18 years to maturity, make semiannual payments, and have a YTM of 8 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What if rates suddenly fall by 2 percent instead? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

5% is your right answer please answer

What is the first step you will take with your new business partners to plan your business?

Answers

Answer:

I would buy or create another company.

Explanation:

What is the name given to the study of how wealth is created and distributed?
O Marketing
O Economics
O Finance
O Capitalism

Answers

Answer:

What is the name given to the study of how wealth is created and distributed?

O Marketing

O Economics

O Finance

O Capitalism

to what extent should the government be involved in creating and enforcing safety laws. What extent should companies be responsible for creating their own standards and self-policing those standards?

Answers

to what extent should the government be involved in creating and enforcing safety laws. What extent should companies be responsible for creating their own standards and self-policing those standards?

What was sweeten company cost of goods sold for march? (Do not round)

Answers

Sweeten Company's Cost of Goods Sold for March was $130,200.

How is the cost of goods sold determined?

The cost of goods sold is made up of the costs of direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.

Data and Calculations:

                                                                        Molding   Fabrication       Total

Estimated total manufacturing hours              4,000         2,400         6,400

Estimated Fixed manufacturing overhead $16,000     $24,000    $40,000

Estimated variable manufacturing overhead

 per machine hour                                           $1.40       $2.20

                                         Job P          Job Q

Direct materials            $20,800     $12,800

Direct labor                     33,600       12,000

Actual Machine Hours:

Molding                             2,740         1,280

Fabrication                          960         1,420

Total machine hours       3,700         2,700

Units produced                    20               30

Predetermined Overhead Rates:

                                                                         Molding   Fabrication

Estimated total manufacturing hours              4,000         2,400

Estimated Fixed manufacturing overhead $16,000     $24,000

Predetermined Overhead Rates                          $4              $10

                                                       ($16,000/4,000)   ($24,000/2,400)

Determination of Applied Overhead Costs:

                                     Job P                            Job Q

Variable Overhead    $5,180 ($1.40 x 3,700) $5,940 ($2.20 x 2,700)

Fixed Overhead:

Molding                   $10,960 (2,740 x $4)       $5,120 (1,280 x $4)

Fabrication               $9,600 (960 x $10)      $14,200 (1,420 x $10)  

Fixed Overhead    $20,560                         $19,320

Total overhead      $25,740                         $25,260

Determination of Cost of Goods Sold:

                                         Job P          Job Q       Total  

Direct materials            $20,800     $12,800   $33,600

Direct labor                     33,600       12,000     45,600

Variable Overhead           5,180         5,940        11,120

Fixed Overhead            20,560        19,320     39,880

Cost of goods sold      $80,140    $50,060 $130,200

Cost per unit                 $4,007        $1,669

Thus, Sweeten Company's Cost of Goods Sold for March was $130,200.

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Can a trend serve as a business opportunity?
A.)True
B.)False

Answers

Answer:

A. True

Explanation:

It can hop on the trend to seem appealing. Ex: in the early 2000s, crop tops where a trend, so businesses where all making shirts that are crop tops so people would buy them.

Answer:

yes it can

Explanation:

if there is a trend in your product it will make more people want to buy it

Equity is the difference between an asset's [ Select ] and the [ Select ]
.

Answers

Equity is the difference between the value of an asset and the amount still owned.

Subtracting debt from the value of an asset yields equity.

Equity is equal to Value of asset - Total debt

Equity is the value that would be returned to a company's shareholders if all assets were liquidated and all debts were paid off. Equity can also be defined as the amount of residual ownership in a company or asset remaining after deducting all debts associated with that asset.

Equity ensures that everyone is treated fairly, has equal opportunities, and advances. In order to ensure that all groups can participate fully, equity aims to identify and remove any obstacles.

Furthermore, shareholder equity can represent the book value of a company. Equity can occasionally be offered as payment-in-kind. It also represents a company's pro-rata share ownership.

Equity, which can be found on a company's balance sheet, is one of the most common pieces of data used by analysts to assess its financial health.

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Bruce is trying to imagine the worst possible day on the job in order to help him figure out what he values at work.

For Bruce, what kind of value is this nightmare job scenario?

an intrinsic career value

a lifestyle value

a self-discovery exercise

an extrinsic career value

Answers

If Bruce is trying to imagine the worst possible day on the job in order to help him figure out what he values at work. For Bruce, the kind of value is this nightmare job scenario is:  A self-discovery exercise.

What is  self-discovery ?

Self-discovery can be defined as the process in which a person tend to understand the kind of person they are by trying to have an understanding about their own self strength ,character or behavior.

Based on the scenario Bruce is making use of  self discovery exercise  to imagine the worst possible day on the job so as to figure out what he values at work.

Therefore the kind of value is this nightmare job scenario is:  A self-discovery exercise.

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1. The _____ is also known as location departmentalization, which is a logical structure and sells its goods in different regions.

A. Geographic structure
B. Matrix organisational structure
C. Multiple Departmentalization
D. Network Structure

2. A process in which managers make a decision as to what type of organisational structure is sufficiently aligned to the external environment and which is most appropriate to the strategies and plans of the organisation

A. Accountability
B. Coordination
C. Organisation design
D. Division of work

3. Emerges naturally from the social relationships which develop between the employees within the organisation.

A. Division of work
B. Job specialization
C. Unity of Command
D. Informal Structure

4. This entails a detailed analysis of work to be done and resources to be used, to accomplish the aims of the business.

A. Organising
B. Scalar Principle
C. Unity of Command principle
D. Job design

5. The organisation design process involves the following steps except_____

A. Reflect on plans and objectives
B. Establish major task and activities
C. Design jobs and assign to employees
D. Identify top level managers

6. The Spokesperson role of a manager involves passing on information received to individuals within the organisation who would benefit from it.

A. True
B. False

7. The formal organisational structure emerges naturally from the social relationships which develop between the employees within the organisation.

A. True
B. False

8. The _____ builds on the features of the network organisation and is a streamlined model that fits rapidly changing and dynamic business environment.

A. Network Structure
B. Geographic Structure
C. Virtual Network Structure
D. Customer based Structure

9. The second step of the organisation design process is

A. Design jobs and assign to employees
B. Define worker relationships
C. Reflect on plans and objectives
D. Establish major task and activities

10. The ____ is a divisional structure where each product or business line is handled by a self-contained division within the business.

A. Team Structure
B. Product structure
C. Virtual Network
D. Matrix Structure

Answers

The Geographic structure is likewise called location departmentalization, that's a logical structure that sells its goods in special areas.

In geography, area or location are used to denote a location (point, line, or region) on the planet's floor or elsewhere. The term location commonly implies a better diploma of truth than region, the latter often indicating an entity with an ambiguous boundary, relying greater on human or social attributes of region identification and feel of vicinity than on geometry.

Definition of location: a position or website occupied or available for occupancy or marked by using a few distinguishing functions: state of affairs tons of the attraction of the house is in its vicinity. b(1): a tract of land designated for a reason the area for mining declare. (2) Australia: farm, station.

Location either refers back to the actual range and longitude coordinates (absolute region) of something on this planet's surface, or it describes something's role in connection with something else (relative area). place, on the other hand, refers back to the bodily and human characteristics of a niche on the map.

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24. You earn $6.30 per hour plus tips. If you work 26 hours this week and
collect $26.35 in tips, what is your gross pay?
305

Answers

Answer:

Gross profit is $190.15

Explanation:

$6.30 for 26 hours is 6.30 * 26 = 163.8

163.8 + 26.35 (tips) = $190.15

David recently purchased a chain of dry cleaners. Although the business is making a modest profit now. David suspects that if he invests in a new press, he could recognize a substantial increase in profits. The new press costs $15.400 to purchase and install and can press 40 shirts an hout (or 320 per day) David estimates that with the new press, it will cost 50.25 to launder and press each shirt. Customers are charged $1.10 6 Marks a How many shirts will David have to press to break even? 6. Soft, David's workload has varied from 50 to 200 shirts a day How long would it take to break even on the new press at the low-demand estimate at the high demand estimate? c. If David cuts his price to 50.99 a shirt, he expects to be able to stabilize his customer base at 250 shirts per day How long would take to break even at the reduced price of So 997 Should David cut his price and buy the new press?

Answers

Yes, David must lower his pricing and get the new press because it has the quickest breakeven time in this construction.

Qa:

F = $15400 in fixed cost

V = $0.25 for variable costs

P=$1.1, the selling price.

Contribution margin (C) = P-V (1.1-0.25) = $0.85

F/C=15400/0.85 is the breakeven point.

= 18117.65

= 18118 tops

Qb:

Low demand prediction:

50 shirts per day/18118

= 362.36

~ 363 days

high estimate of demand of breakeven:

daily 18118/200 shirts

= 90.59

~ 91 days

Qc:

New contribution margin: 0.99 minus 0.25 equals $0.74

F/C=15400/0.74=20811 shirts as the new breakeven quantity.

250 shirts per day are the new estimates for demand.

Time to break even is equal to 20811/250.

= 83.24 days

Yes, David must lower his pricing and get the new press because it has the quickest breakeven time in this construction.

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What is the definition of collective bargaining?
ongoing salary negotiations between an employee and a factory owner a
an agreement among a group of factory owners to raise worker wages
a written set of guidelines about legal and illegal workplace conditions
labor union and employer negotiations about wages and other issues

Answers

The process of negotiating employment terms between an employer and a group of employees is known as collective bargaining.

Typically, a labor union represents employees during collective bargaining. Working conditions, pay and benefits, working hours, and other terms may be bargained during collective bargaining. A written contract is intended to establish a collective bargaining agreement. All employees have a fundamental right to engage in collective bargaining, according to the International Labor Organization. Members of corporate management and labor union leaders, who are chosen by workers to represent them and their interests, negotiate collectively on a regular basis. When employee contracts are due for renewal or when employers alter the workplace or contracts, collective bargaining is started.

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National Debt timeline: record the total national debt for the United States, the public figure in office at the time, and any significant events that may have affected the national debt during the years prior to the date listed. (1791-2015)

Answers

The records show that debts incurred during American Revolutionary War is amounted to $75,463,476.52 by 1 st january 1791.

What is What is the process of calculating life value?

The process of calculation of life value in an insurance is that first of all determine the current income and than subtract the expense, premiums of insurance, and payment of income tax.

The third step is recall the number of years of earning which are remaining before the age of retirement and than find the discounting factor rate including inflation.The life value is an economic value which is used to judge the benefit for the reason of avoiding the rate of fatality.

Therefore, The records show that debts incurred during American Revolutionary War is amounted to $75,463,476.52 by 1 st january 1791.

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The original draft of the Declaration of Independence condemned
O slavery
O the slave trade
O emancipation

Answers

B. The slave Trade.

The original draft of the Declaration of Independence condemned

O slavery

3. How do British Social Anthropologists place an emphasis on structural-functionalism or the function of social structures?

Answers

Answer: HELLO DO YOU REMEBER ME FRIEND?

Explanation:

why do you think the parents are willing to play such a significate and risky role in there kids admission process.

Answers

Answer:

The answer is simple... They want their child to succeed. And if that means paying thousands upon thousands of dollars for their child to go to their dream college to pursue their career, than they are willing to do it.

I also think that in some ways, parents live through their child. By that, I mean providing their kid with the life they themselves never had.

Explanation:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Answers

By using the ceteris paribus assumption, Taylor is holding the

holding all costs of production other than the wage rate constantnot considering retail price of laptop computersWhat is ceteris paribus?

Ceteris paribus is a Latin phrase used in economics that means all other things being equal in English. It is used when studying the effect of one variable on another variable to mean that other variables that can affect the variable being studied is assumed to not change.

When Taylor is analyzing the effect of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, he is assuming that other factors that would affect the supply of laptops are assumed to be constant.

The other factors that might affect the  supply of laptop computers include:

cost of production retail price of laptops

Here is the complete question:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Select the two correct answers below.

Select all that apply:

holding the supply of laptop computers constant

holding all costs of production other than the wage rate constant

holding wage rates constant

not considering retail price of laptop computers

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Capital
4. Cash flows from Operating Activities +
Activities Net increase/decrease in cash

Answers

If the balance of an asset increases, coins glide from operations will decrease. If the balance of an asset decreases, cash drift from operations will boom. If the balance of a legal responsibility increases, coins waft from operations will grow.

If the balance of a liability decreases, coins waft from operations will decrease. the lowest line at the assertion is the internet boom (lower) in cash and cash Equivalents. it's determined by using calculating the whole cash inflows and outflows for every one of the three sections in the cash go with the flow assertion.

Four simple rules to bear in mind as you create your coins go with the flow announcement: Transactions that display a boom in property bring about decrease a in cash go with the flow. Transactions that show a lower in belongings result in a boom in coin flow. Transactions that display a boom in liabilities bring about an in increases coins float.

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In business writing, one should use third person for presenting pleasant ideas and second person for presenting unpleasant ideas

Answers

False. Always use third person for presenting unpleasant ideas.

An effective message communicator develops the message from the receiver's perspective, which is a "you attitude" rather than a "me attitude." The deductive pattern is followed by both good news and routine news messages. Avoid using the second person when stating negative ideas in a written message to project a positive, tactful tone. When presenting unpleasant ideas, always use the third person.

Second-person narration is a relatively uncommon narrative technique in which the action is driven by a character ascribed to the reader, known as you. Writing in third person refers to writing from the perspective of an outsider looking in, and it employs pronouns such as he, she, it, or they.

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Jason works in a water bottling plant. The bottles have to hold exactly one liter of water each. Jason observed that the amount bottles varied about five milliliters above and below the one-liter mark. Which measurement phenomena should Jason use to variation?

Answers

Jason uses the metric system to calculate the water filled in the bottles.

What is metric system?

All of the following statements apply to the metric system:

System: a group of cooperating or interconnected parts that together constitute a coherent whole.Anything that can be measured can be specified using a system of measurement, or set of units. Systems of measurement were initially established and governed historically to promote trade and internal business. Units were arbitrarily determined by the ruling bodies by fiat and were not always closely related to one another or self-consistent. Some quantities were recognized as basis units when they were later scientifically investigated, which meant that all other needed units of measure could be derived from them.

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The selling price of office furniture at Staples is $6,000, percent markup on cost is 40%. Calculate the actual cost.

Answers

Based on the selling price of the office furniture and the percentage markup on cost, the actual cost is $4,285.71

What is the actual cost?

The actual cost can be found by the formula:

= Selling price / (1 + markup percentage)

Solving will then give:

= 6,000 / (1 + 40%)

= 6,000 / 1.4

= $4,285.71

In conclusion, the actual cost is $4,285.71 .

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ETHICS Sophia negotiated a contract with Pete under which she would buy his company for $10 million plus the amount of the company’s outstanding debt (approximately $1 million). But when Pete sent a draft of the contract, it stated that the purchase price would be $10 million less the company’s debt. What is Sophia’s ethical obligation to Pete? Should she tell him about the mistake? What Life Principles would you apply in this situation? What would Kant say?

Answers

In exchange for buying Pete's business for $10 million plus the balance of its debt (about $1 million), Sophia and Pete arranged a contract. The purchase price, however, was $10 million less than the company's debt when Pete provided a draft of the deal. What ethical duty does Sophia have to Pete? Should she let him know about the error? Which life lessons would you apply in this circumstance? How would Kant respond?

It is Sophia's moral responsibility to inform Pete of the contract draft's inaccuracy and arrange for its correction When a contract error results in litigation, the court will only alter the terms of the agreement if there is convincing evidence that the parties meant to perform differently than what is specified in the agreement.  There is no evidence to back the claim because the agreement was designed such that Sophia would buy Pete's company for $10 million plus the amount of the company's existing debt, which rarely occurs against the terms of a contract by accident.  So if Sophia didn't tell Pete about the mistake, Sophia would win but Pete would lose. In this case, I would act morality's guiding ideals. In my opinion, Sophia should tell Pete about the mistake and act in a way that is morally proper given the situation. According to Kant, morality is founded more on upholding one's moral duties than it is on the outcomes of one's activities. Kant would then counsel Sophia to inform Pete of the error because it is morally required of her to tell the truth when entering into a contract.

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A local government is about to run a lottery but does not want to be involved in the payoff if a winner picks an annuity payoff. The government contracts with a trust to pay the lump-sum payout to the trust and have the trust (probably a local bank) pay the annual payments. The first winner of the lottery chooses the annuity and will receive $150,000 a year for the next 25 years. The local government will give the trust $2,000,000 to pay for this annuity. What investment rate must the trust earn to break even on this arrangement

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If the first winner of the lottery chooses the annuity and will receive $150,000 a year for the next 25 years. The investment rate the trust must earn to break even on this arrangement is: 5.56%.

Investment rate earn to breakeven

Given data:

Initial deposit = $2,000,000

Annual payment = $150,000

Number of years = 25 years

Using this formula to find  the interest rate on the annuity by solving for I:

PV=PMT×1−(1+I)−^N/I

Where:

Present value (PV) = -2,000,000

Number of years (N) = 25

Periodic payment (PMT) =-150,000

Future value=0

Interest rate=I/Y = ?

Hence,

$2,000,000=$150,000×1−(1+I)−^25/I

Using a financial calculator to find interest rate(I/Y ) by inputting the below data

N = 25

I/Y = ?

PV = 2,000,000

PMT = -150,000

FV = 0

Hence,

CPT I/Y  = 5.56%

Therefore If the first winner of the lottery chooses the annuity and will receive $150,000 a year for the next 25 years. The investment rate the trust must earn to break even on this arrangement is: 5.56%.

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