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aleksley [76]
3 years ago
6

a retirement plan guarantees to pay you a fixed amount for 25 years. at the time of retirement, you will have $100,000 to your c

redit in the plan. the plan anticipates earning 7% interest annually over the period you receive benefits. assume the first payment occurs one year from your retirement date, how much will your annual benefits be
Business
1 answer:
tatiyna3 years ago
5 0

Answer:

The annual benefits will be$8,581.05

Explanation:

The applicable formula is the present value of an ordinary annuity,which is given as;

PV=A*(1-(1+r)^-N)/r

PV is the amount that would be in the plan at retirement which is $100,000

A is the annual benefits which is unknown

n is the number of years the investment would take which is 25 years

r is the rate of return on investment which is 7%

A=PV/(1-(1+r)^-N)/r

A=100000/(1-(1+7%)^-25/7%

A=100000/1-(1.07)^-25/0.07

A=100000/(1-0.184249178 )/0.07

A=100000/11.65358317

A=$8581.05

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At the beginning of 2019, Emily Corporation issued 10,000 shares of $100 par, 5%, cumulative, preferred stock for $110 per share
soldi70 [24.7K]

Answer:

 $1,500

Explanation:

The computation of the amount of dividend for a preference shareholder is shown below:

Dividend per year is

= (100 shares × $100 par) × 5%

= $500

As the preferred stock is cumulative, so the holders would receive past dividends i.e not distributed

From 2019 = $500

From 2020 = $500

From 2021 = $500

Total          $1,500

7 0
3 years ago
Barbara owns a manufacturing plant with four facilities (North, South, East, and West) in the state of Indiana. The workers at o
Ivanshal [37]

Answer:

Union power

Explanation:

The difference in wages is as a result of Union power because the North now belongs to a labor union that protects their interest. A labor union is an organization that plays the role of an intermediary between their members and their employers. The workers in the North through the union are able to negotiate for better wages. Through collective bargaining, the union gives workers In the North the power to request for better work pay than workers in the east, West and South facilities.

7 0
3 years ago
An investment banker has recommended aâ $100,000 portfolio containing assetsâ B, D, and F.â $20,000 will be invested in assetâ B
soldier1979 [14.2K]

Answer:

β = 1.45

Explanation:

The beta of the portfolio is defined as an average of the betas (β) of each asset within the portfolio weighted by their respective invested amounts (A):

A_{P}* \beta_{P} =A_{B}* \beta_{B} +A_{D}* \beta_{D} +A_{F}* \beta_{F} \\\beta_{P} =\frac{20,000 * 1.5 + 50,000*2.0 +30,000*0.5}{100,000}\\\beta_{P} = 1.45

The beta of the portfolio is 1.45

8 0
3 years ago
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $95 per share for months, and you believe
miv72 [106K]

Answer:

The price of 3 months call option on stock is 8.03.

Explanation:

Acording to the details we have the following:

P = Price of 3-months put option is $6

So = Current price is $95

X = Exrecise price is $95

r = Risk free interest rate is 9%

T = Time is 3 months=1/4

C=Price of call option?

Hence, to calculate what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $95 if it is at the money, we have to use the formula from put-call parity.

C=P+So-<u>     X    </u>

                (1+r)∧T

C=$6+$95-  ( <u>$95      )</u>

                     (1+0.09)∧1/4

C=$6+$95-$92.97

C=8.03

The price of 3 months call option on stock is 8.03

5 0
3 years ago
g When a sexual harassment complaint is filed speculation sometime occurs about who is the complainant. One result can be retali
frez [133]

Answer and explanation:

Sexual harassment is the act by which employees of an organization tend to use their hierarchical position in the firm to influence other employees in engaging personal relationships with them, without the need for the harassed employee to be interested in such a relationship.

The first step to mitigate this unethical behavior is to file a complaint in the Human Resources (HR) department of the company. If there are doubts about the complainant employee, that employee should look for protection from the Equal Employment Opportunity Commission (EEOC) which is the governmental agency in charge of enforcing rules against any type of discrimination or unfair treatment in the work-frame.

3 0
3 years ago
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