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
Snowcat [4.5K]
3 years ago
10

our uncle is about to retire, and he wants to buy an annuity that will provide him with $57,000 of income a year for 20 years, w

ith the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?
Business
1 answer:
Nonamiya [84]3 years ago
6 0

Answer:

It cost him 640,617 dollars

Explanation:

as the first payment start today we will calculate the present value for an annuity-due of 57,000 for 20 years discounted at 5.25%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 52,500

time 20

rate 0.0525

52500 \times \frac{1-(1+0.0525)^{-20} }{0.0525} = PV\\

PV $640,617

You might be interested in
Which symbol on a regulatory marker is used to mark a swimming area?
Damm [24]
Orange crossed diamond symbol on a regulatory marker is used to mark a swimming area. This symbol also means for boats to keep out of the area leaving a part of the sea for the swimming area. This symbol also made in a white buoy with black lettered writing "SWIM AREA". This symbol is a common boat terminology which is known worldwide to increase safety for people who do activity nearby or on the sea and beach<span>.</span>
7 0
3 years ago
Each of the scenarios considers a change in the aggregate price level. Please indicate whether the scenario demonstrates the wea
const2013 [10]

Answer:

1. Wealth Effect as the increase in the price level lead to fall in the purchasing power of money.

2. Interest rate effect . A higher price level induces an increase in the interest rate which results in reduction of borrowing for consumption and investment expenditures.

3. Interest rate effect

4. Wealth Effect- With the decrease in the price level, the purchasing power of the money will rise. Thus, he will be able to purchase same amount at less expenditure and also save the residual amount.

8 0
4 years ago
The area of accounting that provides managers inside the organization with information they need to make decisions is called: a.
Murljashka [212]

Answer:

d. managerial accounting.

Explanation:

Managerial accounting -

It refers to the accounting practice , where identifying , interpreting , analysing and measuring the financial information to managers for the goals and target of the organisation , is referred to as managerial accounting.

It is different from the financial accounting .

Hence , from the given information of the question,

The correct term is d. managerial accounting .

4 0
3 years ago
Your manager tells you that a product design is confidental what should you do
laila [671]

Answer:

a. keep quiet about the design if anyone asks.

b. tell your best friend who is trustworthy.

c. mail the product design documents to your home.

5 0
3 years ago
Vanessa contributed $20,000 of cash and land with a fair market value of $100,000 and an adjusted basis of $40,000 to Cook, Inc.
IRISSAK [1]

Answer:

Vanessa's tax basis in cook inc.           $50,000

Explanation:

Given:

Cash = $20,000

Fair market value = $100,000

Adjusted basis = $40,000

Mortgage executed = $30,000

Now,

For the tax basis

             cash                                          $30,000

add;      Land ( adjusted basis )             $40,000

less ;     Mortgage                                  $20,000

============================================

Vanessa's tax basis in cook inc.           $50,000

============================================

6 0
3 years ago
Other questions:
  • What is likely to happen if a borrower misses a payment on a credit card account?
    11·2 answers
  • Which of the following measures how the level of well-being in a country has changed over time? a. level of nominal GDP per pers
    7·1 answer
  • Frank is interested in rewriting the vision statement for his antique shops, and he wants his employees and his business to grow
    12·1 answer
  • Waterway Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance
    7·1 answer
  • Read the excerpt from a summary of Common Sense, by Thomas Paine.
    13·1 answer
  • Suppose someone borrows $552,000 today to buy a house in Davis, CA. If the annual interest rate is 4%, with monthly compounding,
    7·1 answer
  • 25 free points !!!!!!!!!!!!!!!!!!
    11·2 answers
  • At the end of the year, actual Logistics Department variable costs totaled $296,700 and fixed costs totaled $437,950. The Atlant
    5·1 answer
  • What is a business cylcle
    6·1 answer
  • Which nutrients are the most difficult to consume in sufficient amounts by healthy pregnant women who eat well-balanced diets?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!