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scoundrel [369]
2 years ago
8

Liam​ O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The qu

oted annual premium for Liam is ​$ per thousand dollars of insurance coverage. Because Liam wants a ​$ policy​ (which is 2. 5 times his annual​ salary), the annual premium would be ​$​, with the first payment due immediately​ (i. E. , at age​ 21). A friend of​ Liam's suggests that the ​$ annual premium should be deposited in a good mutual fund rather than in the insurance policy. ​ "If the mutual fund earns ​% per​ year, you can become a millionaire by the time you retire at age​ 65," the friend advises. LOADING. Click the icon to view the interest and annuity table for discrete compounding when i​% per year. A. Is the​ friend's statement really​ true? The future value of annual premiums deposited in a good mutual fund is ​$ nothing. ​ (Round to the nearest​ dollar. )
Business
1 answer:
Rashid [163]2 years ago
3 0

Because the future value of annual premiums deposited in a mutual fund is 755 (F/A, 9%, 45) = $397,023.34, Then, the friend is correct since the mutual fund is roughly three times the sum under the Insurance policy.

<h3>Was Liam's suggestion correct?</h3>

Generally, Premium  payment is mathematically given as

X=60-20

X=45years

Where future value is

755 (F/A, 9%, 45)

In conclusion

755 (F/A, 9%, 45)  = 755 * 525.8587

755 (F/A, 9%, 45) = $397,023.34

Read more about Arithmetic

brainly.com/question/22568180

Complete Question

Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.39 per thousand dollars of insurance coverage Because Liam wants a $90,000 policy (which is 2.5 times his annual salary), the annual premium would be $755, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $755 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 9% per year, you can become a millionaire by the time you retire at age 65," the friend advises.

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Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

= Salaries + commission + Advertising

where,

Salaries = Expected salaries × number of months in one quarter

             = $5,000 × $3

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Commission = (January sales +  February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

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Now put these values to the above formula

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3 0
2 years ago
Which of the following changes in the loanable funds market will decrease the equilibrium real interest rate?
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Answer:

The answer is Option C

Explanation:

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In option C, capital inflows are increasing. This means that there would be an excess supply of money in the economy which can be converted into loanable funds. This would, therefore, push the supply curve to the right thereby reducing the real interest rate equilibrium.

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Key performance indicators are the metrics a company uses to evaluate progress toward critical success factors. Which of the bel
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Answer:

Answer is C

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The keyword here is "quantifiable".

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3 years ago
Consider the following information: ending inventory, $ 24,000 ; sales, $ 250,000 ; beginning inventory, $ 30,000 ; selling and
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96,000 is the cost of goods sold.

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Add: Purchases,              $90,000.

Less: Ending inventory  $24,000;

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Answer and Explanation:

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= $105,200

5. For revenue

= Economic cost + profit

= $135,700 + $50,000

= $185,700

8 0
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