Question 9 of 12

Bob is angry at his company XYZ Corp. since his annual bonus was too small. Bob who has authority to sign checks on behalf of XY

hoa [83]

Answer:

d) The bank does not need to pay because of the fictitious payee rule.

Explanation:

Here, the instrument is issued to a payee who has no interest in instrument and thus it is referred as fictitious payee. According to UCC's fictitious payee rule, the indorsement to fictitious payee is not considered forgery. In this case, the maker or drawer of instrument is liable for it. The drawer bank and collecting bank both are not liable for it.

7 0

3 years ago

Your father is about to retire, and he wants to buy an annuity that will provide him with $91,000 of income a year for 25 years,

Elena L [17]

Answer:

Present Value of Annuity is $1,263,487

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

Formula for Present value of annuity is as follow

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where

P = Annual payment = $91,000

r = rate of return = 5.15%

n = number of years = 25 years

PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]

PV of Annuity = $1,263,487

4 0

4 years ago

What is the value today of a money machine that will pay $2,655.00 every six months for 27.00 years? Assume the first payment is

MAVERICK [17]

Answer:

Present value is $74,116.62

Explanation:

Giving the following information:

The machine pays= $2,655.00 every six months

n= 27 years= 54 semesters

Interest rate= 0.13/2= 0.065

First, we need to calculate the final value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay

FV= {2,655*[(1.065^54)-1]}/0.065= $1,183,854.61

Now, we can calculate the present value using the following formula:

PV= FV/(1+i)^n

PV= 1,183,854.61/(1.065)^44= $74,116.62

3 0

4 years ago

People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Becau

Katarina [22]

Answer: (2) Demand-side market failure

Explanation:

The demand side market failure is one of the type of market effect that basically occur due to the production of the negative response and the effect by the various types of marketing techniques like surveys and the focus groups.

The market failure demand side is one of the type of economical situation in which the customers are willing to pay for the specific products and the services in the market which is not fully capture.

According to the given question, the demand- side market failure is one of the example that best illustrating the given situation. Therefore, Option (2) is correct answer.

8 0

4 years ago

Stephanie is going to contribute $160 on the first of each month, starting today, to her retirement account. Her employer will p

tangare [24]

Answer:

Explanation:

Principal Payment $160

Her Employee help to add $80

Total principal is (160+80)= $240

At a rate of 0.45

For a time of 35years

We will compound her amount

Using compound interest formula

A=P(1+r/n)^nt

Where,

P = principal amount = $240

r = annual rate of interest =0.45

t = number of years the amount invested =35years

A = amount of money accumulated after n years, including interest.

n = number of times the interest is compounded per year=12months

Therefore,

A=P(1+r/n)^nt

A=240(1+0.43/12)^35×12

A=240(1+0.03583)^420

A=240(1.03583)^420

A=240×2.641

A=$633.814

The amount is approximately $633.814

4 0

4 years ago