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vaieri [72.5K]
3 years ago
14

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $27,000 per year fo

rever. Suppose a sales associate told you the policy costs $472,000. At what interest rate would this be a fair deal
Business
1 answer:
TEA [102]3 years ago
4 0

Answer:

5.72%

Explanation:

This involves perpetual annuity, where there are equal cash flows for infinity paid in specific durations

To find the interest rate we use the perpetuity cash flows equation.

Present value(P)= Yearly payments(Y)/Interest rate(I)

P= $472,000

Y= $27,000

I= ?

So 472,000= 27,000/I

Cross-multiply

472,000*I= 27,000

I= 27,000/472,000

I= 0.0572

Remember to express interest as percentage

I= 0.0572* 100= 5.72%

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12 less than the quantity of a number and 7 is -2
Len [333]
X= a number

Less than means to subtract from the quantity.

(x + 7) - 12= -2
add 12 to both sides
x + 7= 10
subtract 7 from both sides
x=3

ANSWER: A number equals 3.

Hope this helps! :)
8 0
3 years ago
A boycott occurs when workers collectively refuse to go to work.
nikitadnepr [17]
When workers refuse to work its called boycotting
3 0
3 years ago
PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a
oee [108]

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

8 0
3 years ago
Wall -to- wall records' April 1 inventory had a cost of $48,000 and a retail value of $70,000. During April, net purchases cost
algol13

Answer:

<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>

Explanation:

Wall-to-Wall Records

                                        Cost          Retail

Beginning Inventory $ 48,000 $ 70,000

Purchases                     $ 210,000       $ 390,000

Cost of Goods Available for Sale $ 258,000 $ 460,000

Cost to Retail Ratio

= $ 258,000 ÷ $ 460,000

= 0.5609 = 56.09%

                                                    Cost            Retail

Cost of Goods Available for Sale $ 258,000   $ 460,000

− Sales                                                                 $ 280,000

Ending Inventory                                          $ 180,000

× Cost to Retail Ratio                                    0.5609

<u>Ending Inventory                           $ 100,962 </u>

5 0
3 years ago
Sony's design of its new plasma television sets with smoked-glass control panel covers and other visual changes would be classif
Lynna [10]

Answer:

The correct answer is letter "A": functional.

Explanation:

Functional changes are implemented in products to improve the benefits of an existing good or service or to fix a recurrent problem the same product used to have. In the case of Sony's design for the new plasma television, it would allow the television's remote control to be easier to use, improving the consumer experience with the good.

5 0
3 years ago
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