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Maslowich
4 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]4 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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After nearly 20 years with his company, Mike's job was outsourced. He wants his new job to offer not only a good wage but also j
Sedbober [7]

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a. intrinsic rewards

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Mike is focusing on the intrinsic rewards of his new job because he is giving more importance to this subjective aspects explained above than to external factors such as status, or wage.

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4 years ago
Writing skills do not shape how others perceive your abilities as a student or employee
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Answer:

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6 0
3 years ago
Joe​ Henry's machine shop uses 2 comma 510 brackets during the course of a year. These brackets are purchased from a supplier 90
stepan [7]

Answer:

D = 2,510 brackets

              H =  $1.60

              Co =  $20

              EOQ =    √2 x 2510 x  20/1.60

             EOQ = 250 units

Average inventory = EOQ/2

                                 = 250/2

                                = 125 units

Total Holding Cost = QH/2

                                = 250 x $1.60/2

                               = $200

No of order = Annual demand/EOQ

                    = 2,510/250

                   = 10 times

Annual  ordering cost = DCo/Q

                                      = 2,510 x $20/250

                                     = $200

Total annual cost = Annual ordering cost + annual holding cost

                              = $200 + $200

                             = $400

Time between orders = No of working days in a year/No of order

                                      = 250/10

                                      = 25 days

Explanation: Economic order quantity is a function of square root of 2 x annual demand x ordering cost per order divided by holding cost per item per annum. D denotes annual demand, Co is ordering cost per order and H represents holding cost per item per annum.

Average inventory is calculated as EOQ/2

Total annual holding cost is calculated as EOQ multiplied by holding cost per item per annum/2

No of order is the ratio of annual demand to EOQ

Annual ordering cost is calculated as annual demand multiplied by ordering cost per order divided by EOQ

Total annual cost is the aggregate of annual ordering cost and annual holding cost

Time between orders is the ratio of number of days in a year to number of order

8 0
4 years ago
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UNO [17]

Answer: On the job training

Explanation:

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4 years ago
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