Insurance products are viable and relevant to individuals because people worry about their medical expenses becoming too high for them to be able to afford. Businesses, on the other hand, need to protect their important investments and assets in order to preserve the business.<span />
Answer:
The current yield is 5.2% and capital gain is 2.63%.
Explanation:
The par value of bond = $10000
Current price = $9500
Annual coupan payment = 5%
Annual coupan payment = 10000 × 5% = $500
Now calculate the current yield.
The current yield = annual coupon payment / current price
The current yield = 500 / 9500 = 0.052 or 5.2%
Now calculate the capital gain. In the question, it says that it starts at $9500 so its original price is 9500.
Capital gain yield = (9750 – 9500) / 9500 = 0.0263 or 2.63%
Answer:
Medical expenditures
Explanation:
Health insurance is one of the most important insurance types that are designed to cover all the medical expenditures that can incur in the future. Medical insurance is all about covering basic medical expenditures such as medicines, operations etc. There are various types of medical expenditures that insurance can cover, which vary according to the type of health insurance.
A Keogh plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses for retirement purposes. A Keogh plan can be set up as either a defined-benefit or a defined-contribution plan, although most plans are set as the latter.
Answer:
Explanation:
Price of car = $19300
Down payment = $3000
Loan. Amount = $16300
Number of years = 4
Rate = 10%
1. What is the total interest on Richard's loan?
Simple interest = PRT/100
where p = principal = 16300
R = rate = 10%
T = Time = 4 years
Simple interest= (16300 × 10 × 4)/100
= $6520
2. What is the total cost of the car?
Total cost = Price + Interest
= 19300 + 6520
= $25820
3. What is the monthly payment?
This will be calculated as:
= (Loan amount + Interest)/Number of months
= (16300 + 6520)/4 years
= (16300 + 6520)/48
= 22820/48
= $475.41667
4. What is the annual percentage rate (APR)?
APR = (2×n×l)/P(N+1)
where,
n = number of payments period in a year.
I = Interest
P= Loan amount
N = Total number of payments
APR = (2×12×6520)/16300(48+1)
= 156480/16300(49)
= 156480/798700
= 0.1959
= 19.59%