1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sattari [20]
3 years ago
15

If you put up $43,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual cash flow be?

Business
1 answer:
AysviL [449]3 years ago
5 0

Answer:

The annual cash flow will be $4,500.

Explanation:

Use following formula to calculate Annual Cash flow from Annuity.

Present value of annuity = annual cash flow ( 1 - ( 1 / ( 1 + rate of interest )^time period ) ) / rate of interest

PVA = C ( 1 - ( 1 / ( 1 + r )^t ) ) / r

$43,000 = C ( 1 - ( 1 / ( 1 + 0.0625)^15 ) ) / 0.0625

$43,000 = C x 9.5555

C = $43,000 / 9.5555

C = $4,500

So, the annual cash flow will be $4,500.

You might be interested in
Why are online sellers a stakeholder in Amazon?
lukranit [14]
These stakeholders are significant because they influence consumer perception on the company's goods and services it basically provides a better business
5 0
3 years ago
The dividend irrelevance theory, proposed by Miller and Modigliani, says that provided a firm pays at least some dividends, how
lesantik [10]

Answer:

b) false

Explanation:

In the case of theory that developed by MM in this the investor have no need for concering with respect to the dividend policy of the company as in this the sell option is there with regard to the equity portfolio when they need the cash

So according to the given situation, the given statement is false

hence the option b is correct

7 0
2 years ago
What is the time frame for reporting an accident to the michigan department of natural resources if property damage exceeds $2,0
serg [7]
The answer to the question above is "5 days" which is the time frame for reporting an accident to the Michigan Department of Natural Resources if property damage exceeds $2,000. This rule is according to the Boat Accident Reporting Requirements in Michigan. A "5 days" time frame for reporting also is done<span> for an accident that includes a missing person.</span>
8 0
3 years ago
Which of the following most accurately describes the change in average weekly earnings since 1980?
Zolol [24]

Answer:

Which of the following most accurately describes the change in average weekly earnings since 1980 Average weekly earnings have risen for college-educated workers only Which of the following workers is likely to earn the highest wage

8 0
2 years ago
Drag each label to the correct location on the image.
xeze [42]

Answer:

Tony and Gareth

Explanation:

Basic eligibility requirements for financial student aid are:

  • Be a U.S. citizen or an eligible noncitizen (including a U.S. national or permanent resident) and have a valid Social Security number.
  • Have a high school diploma or GED certificate.
  • Be enrolled or accepted as a student in an eligible degree or certificate program.
  • Earn a minimum GPA.

Tony has still not completed high school, and Miami resident Gareth does not has a social security number.

Keith and Marshall may be eligible for the financial student aid if they meet all other requirements for financial student aid.

7 0
3 years ago
Other questions:
  • Which of the following can increase your credit card’s APR
    11·1 answer
  • Suppose a firm that makes appliances merges with a company that produces running shoes, and it later also buys a dairy. what is
    15·1 answer
  • Ginny Trueblood is considering an investment which will cost her $120,000. The investment produces no cash flows for the first y
    7·1 answer
  • Grieg Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land fo
    5·1 answer
  • What is a beneficiary?
    6·2 answers
  • Which fast food chain did forrest and leroy raffel start in 1964?
    11·1 answer
  • West Corp. issued 20-year bonds two years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bond
    5·1 answer
  • What is characteristic of an organization in which salespeople do most or all of their own marketing?
    11·1 answer
  • How has globalization made countries more independent
    14·2 answers
  • If a bond's yield to maturity is less than its coupon rate, the bond will sell at a _____, and increases in market interest rate
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!