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
dem82 [27]
3 years ago
15

A local bank will pay you $275 at the end of each year for your lifetime if you deposit $4,400 in the bank today. If you plan to

live forever, what interest rate is the bank paying? (Enter your answers as a percent rounded to 2 decimal places.)
Business
1 answer:
Dima020 [189]3 years ago
5 0

Answer:

Interest rate = 6..3%

Explanation:

<em>An investment that pays a fixed amount for life is called a perpetuity. The worth of a perpetuity today is the present value of the future cash flow. Using the present value of the perpetuity formula, we can work out the interest rate as follows:</em>

PV = A ×   1/r

<em>Where PV = present value, r- Interest rate , A- annual cash flow</em>

4,400 = 275×    1/r

cross multiply

4,400 ×  r= 275

divided both sides by 4,400

r = 275/4400

r= 0.0625  × 100

r= 6.25%

r= 6.3%

Interest rate = 6..3%

You might be interested in
You're a hardcore gamer, and you want to build the ultimate video game e-commerce site. You can think of a number of special fea
dlinn [17]

Answer:D

Explanation:

Inviting customers to write product review and recommendations

5 0
3 years ago
Suppose you deposit​ $2000 in currency into your checking account at a branch of Bank of​ America, which we will assume has no r
Finger [1]

Answer: Please see answer in the explanation column

Explanation:  A T- account resembles a tshape that shows a representation for financial records using  double-entry bookkeeping, when it involves  different accounts like asserts and liabilities, debits to liabilities decrease the account while credits increase the account. The contrary is true for assets

first T-account

.a) <u>Assets              |         Liabilities</u>

Reserve: +$2000        Deposit: +$2000

b)

<u>Assets                |        Liabilities</u>

Reserve $400        Deposit=+$2000

Loans: .+$1600         

Where required reserve ratio is 20% ie 0.02 x 2000= $400

The bank will keep $400 as reserve and can only loan out $1600

Deposited in another bank as

<u>Assets                |        Liabilities</u>

Reserve $1600        Deposit=$1600

4 0
3 years ago
Select the correct answer. George works in a factory and is a member of the labor union. He thinks his wages are low for the wor
lukranit [14]

Answer:

C. collective bargaining

Explanation:

Collective bargaining is when negotiations for better terms of service involve and a group of employees or organized representatives of employees and the employers. The essence of collective bargaining is to have negotiations conducted by parties with interests only, not outsiders.

Collective bargaining may involve a single firm and its employees or employees from different organizations within the industry and their employers. The negotiation objective is to reach an agreement on improved terms or better working conditions.

6 0
3 years ago
The two most likely benefits realized from utilizing enterprise systems are improvements in ________. availability of informatio
Mazyrski [523]

Answer: availability of information and increased interaction throughout the organization

Explanation: An enterprise systems is described as an integrated suite of business applications for virtually every  department, process, and industry, that allows companies and organizations to integrate information across  operations on a company-wide basis by the use of one large database and as a result, there is an upward increase in the availability of information which leads to increased interaction across departments, processes, and industries throughout the organization.

6 0
3 years ago
Annie's team has just finished a major project and the team has, after a long time, got some free time on hand. However, for the
Natasha_Volkova [10]

Answer:

B.

Explanation:

B is giving a bit of a impersonal approach, and comes across as just pushing company rules, especially by attaching a company policy.  Her response should be more precise with options.  Annie does not provide that in response B.

5 0
3 years ago
Other questions:
  • The management of a telecommunications company informs the members of its sales team that if they continue to underperform, the
    12·1 answer
  • The types of prices that appear least often in ads are ____ prices.
    8·2 answers
  • ________ refers to setting price based on buyers' perception of value rather than on the seller's cost.
    15·1 answer
  • WILL MARK BRAINLIEST!! The regional grocery chain sells its own brand of fruit juice manufactured by a national producer, an exa
    6·1 answer
  • Managers should act in shareholders' interests because shareholders have ___________ priority in receiving their claims.A. TopB.
    5·1 answer
  • To save energy and money, Jackie Smith replaced the 150 Watt incandescent light bulb in her house with a 32 Watt CFL bulb. The e
    14·1 answer
  • Kaitlin works with her clients to increase visibility and use of their websites using
    9·1 answer
  • Paula Reid is the manager at the Miami office of the U.S. Secret Service who set in motion a major prostitution scandal by repor
    10·1 answer
  • South Carolina Industrial Products' bonds have a 7.00 percent coupon and pay interest annually. The face value is $1,000 and the
    9·1 answer
  • Malcolm (37) is a U.S citizen
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!