1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
const2013 [10]
3 years ago
10

You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving th

e insurance proceeds. You can receive a lump sum of $50,000 today or receive payments of $641 a month for ten years. You can earn 6.5% on your money. Which option should you take and why?
a. You should accept the payments because they are worth $56,451.91 today.
b. You should accept the payments because they are worth $56,523.74 today.
c. You should accept the payments because they are worth $56,737.08 today.
d. You should accept the $50,000 because the payments are only worth $47,757.69 today.E. You should accept the $50,000 because the payments are only worth $47,808.17 today.
Business
1 answer:
hoa [83]3 years ago
7 0

Answer:

You need to have in mind that you are looking at the present value because the lump sum is worth $50,000 today.  You need to compare the present for 10 years of your life would be  worth today.

So:

FV=0

N=10 X 12=120

PMT= 641

I=6.5% / 12= 0.5417%

Solve for PV=  $56,451.91 (is larger than $50,000)

You might be interested in
Which of the following is an assumption of a special order decision? Group of answer choices The special order sales will not af
Bezzdna [24]

Answer:

Capacity may be expanded or contracted as necessary without affecting fixed costs.

Explanation:

If a firm accepts a special-order, it will do so because the increased production costs will be lower than the extra revenue from the sale.

Production costs rise because special-order decisions usually involve large-volume sales at a lower price. This higher output requires the use of more inputs, and those inputs are variable costs.

For example, suppose a car factory sales on average 1,000 cars per month. The factory has the right amount of workers, and uses the right amount of energy, to produce 1,000 cars per month. The next month, a client order 5,000 cars in just one month, and the factory accepts the special-order. Variable costs energy and wages will rise.

6 0
3 years ago
Drag each label to the correct category. the economy of a country has been growing at an annual rate of 8%. determine the causes
Alex787 [66]

Cause: human capital investment, physical capital investment

Effects: improvement in living standards, social and community development

<h3>What does Economic growth indicate?</h3>

Economic growth rates indicate how quickly the economy is expanding and are calculated by comparing the economic output (measured as the Gross Domestic Product or GDP) of two successive periods.

<h3>What are the effects of Economic growth?</h3>
  • A greater variety of goods and services are now available and ready for consumption in the country.
  • High employment levels are required because workers are required to manufacture such a large quantity of goods and services. Employment figures have risen in tandem with GDP growth.
  • More employment boosts aggregate demand and generates additional growth as businesses continue to try to meet all demand.
  • As demand rises, prices are likely to rise as well, so economic growth would raise the inflation rate.
  • Increased productivity and the adoption of new technologies ma

To learn more about Gross Domestic Product or GDP from the given link

brainly.com/question/3200071

#SPJ4

5 0
1 year ago
Despite huge legal costs and social disapproval, mr. lambers refuses to pay income taxes because his conscience will not allow h
NemiM [27]

Answer: Post conventional

Explanation:  

 The post conventional is one of the type of moral development stage in the Kohlberg's theory that basically helps in defining the various types of values and the principle. It is basically define about the various types abstract principle and also the values in terms of morality.

According to the given question, Mr lamber's reasoning is best illustrating about the post conventional stage which basically concerned with the various types of ethical principles and the human rights.  

 Therefore, Post conventional is the correct answer.

3 0
4 years ago
Bocelli Co. purchased $120,000 of 6%, 20-year Sanz County bonds on May 11, Year 1, directly from the county, at their face amoun
Lina20 [59]

Answer:

S/n    General journal                                  Debit              Credit

a        Investment in Sanz County bonds   $120,000

         Interest                                                $800

         (120,000*6%*40/360)

                 Cash                                                                  $120,800

         (The purchase of the bonds on May 11 plus 40 days of accrued

           interest; assume a 360-day year.)

b.       Cash                                                      $3,600

               Interest receivable                                              $800

               Interest revenue                                                  $2,800

          (Semiannual interest on October 1)

c.        Cash(150* (99%*30,000) - $100)        $29,750

          Loss on sale of investments               $400

               Investment in Sanz County bonds                     $30,000

               Interest revenue                                                  $150

          (Sale of the bonds on October 31)

d.      Interest receivables                               $1,365

               Interest revenue                                                  $1,365

         (Adjusting entry for accrued interest of $1,365 on

          December 31, Year 1.)

6 0
3 years ago
You own a stock portfolio invested 34 percent in Stock Q, 18 percent in Stock R, 36 percent in Stock S, and 12 percent in Stock
Step2247 [10]

Answer:

Portfolio beta = 1.3156

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,

Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

  • w represents the weight of each stock in portfolio

Portfolio beta = 0.34 * 1.03  +  0.18 * 1.09  +  0.36 * 1.49  +  0.12 * 1.94

Portfolio beta = 1.3156

4 0
4 years ago
Other questions:
  • 24. On January 15, 2015, the accounts receivable balance was $7,000 and the balance in the allowance for doubtful accounts was $
    12·1 answer
  • When using the indirect method, which of the following would be included in the net cash flows from operating activities section
    12·1 answer
  • In the month of March, Crane Salon services 590 clients at an average price of $120. During the month, fixed costs were $21,312
    8·1 answer
  • The action by Massachusetts farmers who were protesting debt collections, foreclosures, and taxes and which raised concern among
    8·2 answers
  • Definition of a mission statement in businesses?
    14·1 answer
  • You have a job at a real-estate agency in the small country of Dystopia, where you are paid 72,000 marks (the currency of Dystop
    7·2 answers
  • If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is:______
    10·1 answer
  • Help please!! I’ll give Brainliest!
    7·2 answers
  • What is an asset in accounting <br>​
    8·1 answer
  • one of the advantages of the matrix structure is: group of answer choices the ability to balance conflicting objectives higher p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!