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3 years ago

All of the following information about a customer must be used in determining annuity suitability EXCEPT

Business

1 answer:

jenyasd209 [6]3 years ago

5 0

Answer:

The correct option is c. Beneficiary 's age

Explanation:

For determining the annuity suitability of a customer, the producer determines the following things which include financial status, customer age, taste and preference, tax status, annual income, financial experience, etc.

These things are important to judge the customer preference, and their bargaining power so that it becomes easy for producers to achieve their sales targets.

Therefore, beneficiary's age is not a criterion to determine annuity suitability.

Hence, The correct option is c. Beneficiary 's age

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Assume that a one-year CD purchased for $1000 pays an APR of 10% that is compounded semi-annually. How much is in the account at

vfiekz [6]

Answer:

At the end of the first compounding period: $1,050.00

At the end of the second compounding period: $1,102.50

Explanation:

1. First period:

Investment: $1,000

APR = 10% = 0.1 compounded semi-annually.

Semi-annually compound interest: 0.1 / 2 = 0.05

Interest earned at the end of the first period: $1,000 × 0.05 = $50.00

Amount in the accoun at the end of the first period:

$1,000.00 + $50.00 = $1,050.00

2. Second period

Amount in the account beginning the second period: $1,050.00

Semi-annually compound interest: 0.1 / 2 = 0.05

Interest earned in the second period:

$1,050.00 × 0.05 = $50.00 = $52.50

Amount in the account at the end of the second period:

$1,050.00 + $52.50 = $1,102.50

6 0

3 years ago

Simon Company had the following summarized operations for the month of May: Revenues earned: for cash, $32,000; and on account,

AlladinOne [14]

Answer:

$35,000

Explanation:

Given that,

Revenues earned:

cash = $32,000

on account = $18,000

Expenses incurred:

cash = $5,000

on account = $10,000

Net Income:

= Income - Expenses

= (Cash revenue + account revenue) - (cash expenses + Expenses on account)

= ($32,000 + $18,000) - ($5,000 + $10,000)

= $35,000

Therefore, the net income for the month of May is $35,000.

7 0

3 years ago

Match the example with the business structure that makes sense for it. To match the items, click the example, and then click the

Kazeer [188]

Answer:

Doug and Vanessa- partnership

Esperanza- sole partnership

Robyn- c corporation

Cuba- s corporation or LLC

Ming- nonprofit corporation

I hope this helps someone!!

7 0

3 years ago

A market might have an upward-sloping long-run supply curve if:

Elan Coil [88]

Answer:

a. firms have different costs.

Explanation:

A market might have an upward-sloping long-run supply curve if

a. firms have different costs.

b. consumers exercise market power over producers.

c. all factors of production are essentially available in unlimited supply.

d. the entry of new firms into the market has no effect on the cost structure of firms in the market.

6 0

2 years ago

You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,030. These bonds make annual pa

defon

Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds = 5.8%

bonds price = $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value

so that face Valueof bond = $1,000

and here annual Coupon Amount will be

annual coupon amount = $1000 × 5.80%

annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value ......................1

here Present Value of Coupon Payments at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) = $\frac{1-(1/(1+r)^t}{r}$ ....2

Present Value Annuity Inflow Factor = $\frac{1-(1/(1+0.0510)^14}{0.0510}$

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= $\frac{1}{(1+r)^t}$ ...........3

Present Value Inflow Factor (PVIF) = $\frac{1}{(1+0.0510)^14}$

Present Value Inflow Factor = 0.49838

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price] ...............4

total rate of return on the Bond = $\frac{58+(1068.85-1030)}{1030}$

total rate of return on the Bond = 9.40%

5 0

3 years ago