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Alexeev081 [22]
2 years ago
11

A local bank will pay you $99 a year for your lifetime if you deposit $1,100 in the bank today. If you plan to live forever, wha

t interest rate is the bank paying
Business
1 answer:
BabaBlast [244]2 years ago
3 0

The answer is 9%.

Given,

A local bank will pay you $99 a year for your lifetime if you deposit $1,100 in the bank today.

Let the interest rate be 'r'.

Then, Using the short-cut method, we get,

r = (Annuity amount ÷ Annuity paid) × 100

Now, substituting the values in the above formula we get,

r = (99 ÷ 1100) × 100

r = 9%

Hence, in the given scenario where a local bank will pay you $99 a year for your lifetime if you deposit $1,100 in the bank today. If you plan to live forever, what interest rate is the bank paying is 9%.

Learn more about interest rate:

brainly.com/question/1115815

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3 0
3 years ago
Which statement is TRUE regarding a 28-year old woman who inherits he grandfather's IRA? A. She may delay distributions until sh
frosja888 [35]

Answer:

C. She may receive distributions over her expected life

Explanation:

The deal that derives that if there is one inherits so IRA could be inherited from the spouse. In this case, the fund would remain in the IRA with no tax outstanding unless the spouse continues for taking the distributions it could be started by age 70 and half.

If we skip the given away option that implies the transfer the IRA in a Beneficiary Distribution Account. Also the distributions arise when there is a depletion over the five years

Since she is 28 years old so the expected life is for another 50 + years or more so it decreases the needed yearly distribution

Therefore the option C is correct

5 0
3 years ago
. It is important to conserve fossil fuels because
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Explanation:

However, there is a more important reason to conserve fossil fuels, and that's to help heal the environment. Burning petroleum, coal and natural gas fills the air with harmful pollutants, including nitrogen oxides, sulfur dioxide, carbon dioxide, ozone and a host of hydrocarbons.

3 0
3 years ago
Management at Work
Orlov [11]

Answer:

✔ Make sure that when you build your network, you don’t always expect your contacts to be giving to you. You have to give as well as receive in order for a network to be effective.

✔ You’re going to have a hard time building a network that you can use to support you through this restructuring, but start now to build your network before you need it the next time.

✔ Reach out to people and do as many activities as you can with them. Try to fill your calendar so that you connect with as many people as possible.

✘ Try to fill your network with people who are very similar to you, preferably people who do the same kind of work you do and people who have non-work backgrounds similar to yours. This will make it easier to develop relationships with them.

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2 years ago
You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1
Nookie1986 [14]

Answer:

FV= $44,269.11

Explanation:

<u>First, we need to calculate the future value of the lump-sum deposit of $20,000:</u>

<u></u>

FV= PV*(1 + i)^n

FV= 20,000.01*(1.05^11)

FV= $34,206.8

<u>Now, the future value of the $800 annual deposit:</u>

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

A= annual deposit

FV= {800*[(1.05^10) - 1]} / 0.05

FV= $10,062.31

<u>Finally, the total future value:</u>

FV= $44,269.11

4 0
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