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Maslowich
3 years ago
8

C. D. Rom has just given an insurance company $34,500. In return, he will receive an annuity of $4,200 for 20 years. At what rat

e of return must the insurance company invest this $34,500 in order to make the annual payments? (Do not round intermediate calculations)

Business
1 answer:
vivado [14]3 years ago
8 0

Answer:

10.53%

Explanation:

In this question, we use the RATE formula that is shown in the attachment. Kindly find it below:

Data provided  

Present value = $34,500

Future value or Face value = $0

PMT = $4,200

NPER = 11 years × 2 = 22 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative

So, after solving this, the rate of return is 10.53%

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rick's pawn shop issued 11% bonds, dated january 1, with a face amount of $400,000 on january 1, 2022. the bonds sold for $370,0
geniusboy [140]

An unrealized gain of $5,412 from the change in the fair value of the debt.

<h3>How does general interest rate risk work?</h3>

Interest-rate risk (IRR) is the exposure of a financial institution to unfavorable changes in interest rates. Accepting this risk is common practice in the banking industry and can be a key driver of profitability and shareholder value.

Explanation:

Given that the bond's face value is $400 000

Bond selling price: $370,000

yield until maturity equals 12%

Bond has a fair value of $365,000.

Value shifted = $2,000

Net income and OCI are both included in comprehensive income.

To learn more about Interest-rate risk (IRR) refer to:

brainly.com/question/20715710

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6 0
9 months ago
If you walk into a(n) __________, you will likely find a broad variety of merchandise, deep assortment, and customer service, wi
Naily [24]

Answer:

department store

Explanation:

A department store is a type of retailer that offers a wide range of diverse products. Each product group is classified into a department, thus the name "department store". When customers buy products, they usually check out near the exit of the whole department store, although there are some check-out counters in each department. Also, customer service is always present, mostly in the form of numerous sales clerks providing a helping hand.

They can include almost any range of products: toiletries, furniture, home decor, clothes, toys, hardware... Some famous examples are: Le Bon Marché in Paris, Selfridges in the UK, Macy's in the USA...

On the other hand, a <em>discount store</em> usually offers a broad product range, low prices, but little to none customer service. <em>Specialty stores</em> have a narrow target group as they offer a limited assortment.

5 0
3 years ago
Cullumber, Inc. acquired 30% of Marigold Corporation's voting stock on January 1, 2021 for $890000. During 2021, Marigold earned
Strike441 [17]

Answer:

The gain on the sale of investment is $145,325

Explanation:

In determining the gain on the sale of half of the stock,the first thing to do would be determine the cost of the stock sold such that the cost can then be compared with the proceeds from the sale of the investment so as to determine the gain therein.

The total investment should be valued in such a way that the share of profits should be added to the investment while the dividends received would be deducted.

Jan,1 2021                                                                   $890,000

Share of profit($367,000*30%)                                  $110,100

less dividends(since it already received in cash

($228,000*30%)                                                         ($68,400 )

Value of investment at 31 Dec,2021                         $931,700  

Share of profit(30%*$467000)*6/12                           $70,050

Dividends(30%$128,000)                                          ($38,400 )

Value of investment as at 1 july  2022                     $963,350  

Note that as at I july 2022 Marigold Corporation is only entitled to half year profits on the investment as well as half year dividends

Cost of half of investment=$963,350*1/2=$ 481,675.00  

Gain= proceeds-cost=$627,000- 481,675 =$145,325

4 0
3 years ago
McDonald's is testing the Crispy Chicken Sandwich in two markets. McDonald's franchisees have asked for a Southern-style chicken
ycow [4]

Does not reflect the marketing condition in the new products projected market area is the greatest danger to McDonald's is in choosing a test-site city.

<h3>What market area means?</h3>

A market area is a surface that displays the demand or supply for a specific item. It covers the locations where a factory's products are sent, while it is the tributary area from which a retail store pulls its clients.

Different areas of marketing are Digital marketing, Content marketing, Social media marketing, Visual marketing, Search engine marketing, Influencer marketing.

Thus, it does not reflect the condition of new project.

For more details about market area, click here

brainly.com/question/14773888

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5 0
2 years ago
Why doesn't school notes work
Katyanochek1 [597]
You just have to study them
6 0
3 years ago
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