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PSYCHO15rus [73]
4 years ago
15

Assume that Social Security promises you $ 41,000 per year starting when you retire 45 years from today​ (the first $ 41,000 wil

l get paid 45 years from​ now). If your discount rate is 9 %​, compounded​ annually, and you plan to live for 18 years after retiring​ (so that you will receive a total of 19 payments including the first​ one), what is the value today of Social​ Security's promise?
Business
1 answer:
Maurinko [17]4 years ago
4 0

Answer:

PV= $7593.12

Explanation:

Giving the following information:

We have 19 equal payments of $41,000 at a rate of  9 %​, compounded​ annually. We need to find the present value.

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

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

A= annual deposit

FV= {41,000*[[1.09^19)-1]}/0.09= $1,886,756.79

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 1886756.79/1.09^64= $7593.12

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Which of the following statements describes a recurring theme about today's ecological environment?
IrinaVladis [17]

Answer:

Option "C" is the correct answer to the following question.

Explanation:

The ecosystem contains all abiotic features such as temperature, salinity, soil type, or water scarcity, and biotic aspects such as food supply, habitat, pests, pathogens, or information.

Customers are pushing hard for companies to develop goods and services that clearly end up saving energy and provide a common theme regarding today's environment

Therefore "C" is the correct answer.

5 0
4 years ago
Tedd E. Bear has an annual salary of $48,000 with no other loans outstanding. Using the 25% guideline from class and with a 20%
Kobotan [32]

Answer:

The total loan value would be of $261,825

Explanation:

In order to calculate how expensive of a home can Tedd purchase using a 4%, 30 year mortgage we would have to calculate first the amount of annual payments as follows:

amount of annual payments = $48,000*0.25 = $12,000

PMT = 12,000/12 = 1000

FV = 0

rate = 4%/12

N = 30*12

Hence, use FV function in Excel  amount after down payment = $209,461.24

this represents 80% of the loan , so total loan value = $209,461.24/0.8 = $261,825

The total loan value would be of $261,825

3 0
3 years ago
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the
NNADVOKAT [17]

Answer: Option(d) is correct.

Explanation:

Given that,

Purchases a bond = $10,000

Bond pays at the end of the first, second, and third years = $400

Bond pays upon its maturity at the end of four years = $10,400

(i) Principal amount of this bond = $10,000

It is the issue price of the bond.

(ii) The coupon rate of the bond = \frac{Interest\ Received}{Face\ value\ of\ bond}\times100

                                                     = \frac{400}{10,000}\times100

                                                     = 4% per year

(iii) The term of this bond is 4 years, as it was matured after 4 years.

7 0
3 years ago
A social responsibility theory of business according to which a corporation's duty is to make a profit while avoiding causing ha
Lena [83]

Answer:

The answer is moral minimun.

Explanation:

The moral minimun is the less acceptable standard for ethical business behavior. Normally considered to be compliance with the law.

In other words, is the minimum degree of ethical behavior expected of a business firm, which is usually defined as compliance with the law.

4 0
4 years ago
Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500 For the next 5 years,
meriva

Answer:

Mark Johnson's investment would worth $ 13,223.95  at 8%,$ 12,338.93  

at 5% and $ 11,784.66  at 3%

Explanation:

In calculating the worth of the investments at different rates of interest I adopted the future value approach as contained in the attached.

Download xlsx
5 0
3 years ago
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