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inn [45]
3 years ago
6

Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $74,000 at age 65, the firm will pa

y the retiring professor $450 a month until death. If the professor’s remaining life expectancy is 15 years, what is the monthly interest rate on this annuity?
Business
1 answer:
photoshop1234 [79]3 years ago
8 0

Answer: 0.10%

Explanation:

The following can be gotten from the question:

n = 15 years

We change it to months. Thus will be:

= 15 × 12

= 180

Present value of an annuity :

= A × {1- (1 +r ) -n ]/r}

74000 = 450 × [ 1- (1 +r) - 180]/r

r= 0.10%

Therefore, the monthly interest rate is 0.10%.

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I prepared another amortization schedule for the remaining 9 years, and the monthly payment is $969.32. She will pay off the loan in 108 months.

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3 years ago
Joseph Juran provided guidance regarding how to conduct quality planning, quality control, and quality improvement. Which of the
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Answer:

b. work to identify root causes, not just symptoms.

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7 0
2 years ago
Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,
BigorU [14]

Answer:

Based on the information supply of cards is more elastic (price sensitive) than that of roses

Explanation:

Price elasticity of supply is defined as the sensitivity of quantity supplied to changes in price.

The formula is given below

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This implies that the denominator in the formula is higher in roses resulting in smaller price elasticity of supply.

The elasticity of supply for cards is higher than that of roses, so it is more sensitive to changes in price.

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