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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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McLeod, Inc. incurred fixed costs of $300,000 and variable costs of $200,000 for total costs of $500,000 when 59,000 units are p
Ad libitum [116K]

Answer:

$3.389

Explanation:

Data provided as per the question below

Fixed cost = $300,000

Variable cost = $200,000

Total cost = $500,000

Units produced = 59,000

The computation of variable cost per unit is shown below:-

Variable cost per unit = Variable cost ÷ Units produced

= $200,000 ÷ 59,000

= $3.389

Therefore we applied the above formula.

3 0
3 years ago
According to the official measure of poverty, in 2009 the poverty rate of families in the United States was Select one:
Svetlanka [38]

Answer:

I think (a).

Explanation:

l am not sure about it

3 0
3 years ago
A year ago, Phyllis Peterson purchased 100 shares of Fidelity's Contrafund for $50 each. During the year, her total return from
Y_Kistochka [10]

Phyllis' RATE (percentage) of return is 7 percent

<u>Explanation:</u>

Data provided in the question:

Purchase price for each share = $50

Dividend received = $1 per share

worth of shares at the end of year = $52.50

Thus, total return on the share  = dividend received plus worth of sahres at the end of year minus purchase price

= $1 plus $52.50 minus $50 = $3.5

Therfore, rate of return = [ total return on the shares by purchase price ] into 100%

= [$3.5 by $50] inot 100 percent

= 7 percent

hence, the option with 7 percent will be the correct answer.

6 0
3 years ago
. In 2000, KFC® and A&amp;W® restaurants successfully merged because each had a strong
klio [65]

Explanation:

Co-branding is a form of branding that connects companies together. Essentially, co-branding is a marketing partnership between two or more businesses.

6 0
3 years ago
An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distri
marissa [1.9K]

Answer:

$60

Explanation:

An individual buys stock at $40 per share. Many years later, the individual dies when the market value is $60. The estate distributes the shares to a beneficiary when the stock is worth $70. Therefore the cost basis to the beneficiary is

The cost basis by definition is usually equal to the fair market value of the property or asset at the time of the decedent's death or when the actual transfer of assets was made.

However for the purpose to be served to reduce the tax due on the inheritance, we have chosen to opt for the fair market value of the property or asset at the time of the decedent's death which is $60

3 0
3 years ago
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