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Yuki888 [10]
3 years ago
9

An insurance firm agrees to pay you $3,310 at the end of 20 years if you pay premiums of $100 per year at the end of each year f

or 20 years. Find the internal rate of return to the nearest whole percentage point.
Business
1 answer:
azamat3 years ago
3 0

Answer:

6.43%

Explanation:

The internal rate of return shall be determined by the Insurance firm using the following mentioned method:

Cash flows      Year involved      Present [email protected]%  Present [email protected]%          

($100)                 1-20                      ($851)                            ($1,487.75)                      

$3,310                 20                        $492                             $1,832.67

                                                        ($359)                           $344.92

IRR=A%+ (a/a-b)*(B%-A%)

A%=10%  a= ($359) B%=3%  b=$344.92  

IRR=10%+(-$359/-$359-$344.92)*(3%-10%)

     =6.43%

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How would utility costs be properly classified? Select one: A. Curvilinear B. Fixed C. Variable D. Stepped E. Mixed
ANTONII [103]

Answer: Mixed

Explanation:

Here is the complete question:

Max Machining incurs the following utilities costs at different levels of production:

0 units: $120

500 units: $2,620

1,000 units: $5,120

How would utility costs be properly classified?

A) Curvilinear

B) Variable

C) Mixed

D) Fixed

E) Stepped

The utility cost here will be classified as a mixed cost. A mixed cost is a type of cost that has both fixed and variable cost. At 0 units, $120 was already spent. This shows that this cost is a fixed cost as it doesn't have anything to do with output. It'll still be paid regardless of the number of outputs while the other cost incurred are variable cost which is dependent on the number of outputs of goods.

Based on the explanation above, the answer is mixed cost.

3 0
3 years ago
G4S is a company that provides security services. Saving lives is not the employees' primary job. Which of the following options
professor190 [17]

Answer: A

Cross training

Explanation:

Cross training involves teaching an employee the the skills required to execute the task he/she was employed for and also the skills required to perform a different job function. G4S is a security firm and the primary job function of its recruit will be protecting life but there might be case of an injured individual that need quick medical help, in such cases an employee is required to know basic first aid. Hence the need for cross training.

3 0
3 years ago
The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e
Alja [10]

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

5 0
3 years ago
Noma plans to save $3,400 per year for the next 35 years. If she can earn an annual interest rate of 9.2 percent, how much will
maksim [4K]

Answer:

c) $767,464.54

Explanation:

The computation of the future value of an annuity is shown below:

As we know that

Future value of annuity F =  Payment made × ((1 + rate of interest)^t - 1) ÷ r ate of interest

= $3,400 × (1.092^35 - 1) ÷ 0.092

= $3,400 × 225.7249

= $767,464.54

Hence, the future value of an annuity is $767,464.54

Therefore the correct option is c.

3 0
3 years ago
Walmart visa gift card Invalid Gift Card information. Please try again in 24 hours.
Hoochie [10]

Walmart visa gift cards are the gift cards that are used to make payments just like the credit or the debit cards used. The benefit with this is  that you get a gift with every purchase you make, making it attractive for the buyer.

<u>Explanation:</u>

Walmart visa gift cards are the cards that are used to make payment just like the debit or the credit card. The amount gets deducted directly from the account with every purchase the consumer makes. But the benefit of this is that you get an assured gift with every purchase you make. So this attracts the customers.

Walmart Visa gift cards are acceptable at the places where visa gift cards are acceptable throughout the United States of America and the district of Columbia. These gift cards are not acceptable internationally. These can only be used in the country to make purchases and not in other countries of the world.

6 0
4 years ago
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