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miskamm [114]
2 years ago
13

Your insurance agent is trying to sell you an annuity that costs $70,000 today. By buying this annuity, your agent promises that

you will receive payments of $380 per month for 25 years. What is the rate of return expressed as an APR on this investment
Business
1 answer:
Tatiana [17]2 years ago
5 0

Answer:

APR = 0.356%

Explanation:

PV = Present Value of the annuity = $70,000

PMT = Annuity payment at the end of each period = $380 per month

N = Number of periods = 25 years x 12 months = 300 Months

FV = Future Value of the annuity =  0

I =  APR or the interest rate = ?? We have to calculate this.

We shall use a financial calculator to compute the value of I.

https://www.calculator.net/finance-calculator.html?ctype=returnrate&ctargetamountv=0&cyearsv=300&cstartingprinciplev=-70000&cinterestratev=6&ccontributeamountv=380&ciadditionat1=end&printit=0&x=93&y=13

APR = 0.356%

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Which of the following is true of a budget committee? a.It ensures that shareholders approve the budget. b.It takes care of the
CaHeK987 [17]

Answer:

The correct answer is letter "C": It is responsible for reviewing the budget.

Explanation:

The Budget Committee is formed by high executives in an organization who create and keep the fiscal responsibility of that company. Normally, budget committees are composed by the <em>Chief Executive Officer</em> (<em>CEO)</em> and the <em>Chief Financial Officer</em> (<em>CFO</em>). They are in charge of reviewing and approving the budget.

5 0
2 years ago
A project has a cash flow of -$161,900, $70,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of retur
zepelin [54]

Answer:

IRR = 13.55%

Accept

Explanation:

Here is the complete question:

A project has a cash flow of -$161,900, $70,800, $62,300, and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project.

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 = -$161,900

Cash flow in year 1 =$70,800

Cash flow in year 2 = $62,300

Cash flow in year 3 =$75,000

IRR = 13.55%

A project should be accepted if its IRR is greater than the internal rate of return. Because 13.55 is greater than 13 percent the project should be accepted.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0
2 years ago
A mother wants to divide $680.00 among her children according to the ratio 2:4:6. The shares would be
Elan Coil [88]

Answer:

The shares would be… 113.33, 226.66, and 340

Explanation:

First step

2:4:6=12

2/12=1/6

4/12=1/3

6/12=1/2

Step 2

Since 1/6 of the money is for one child it would be 1/6 times (of) 680. This equals 113.33, you do the same for the other two children. You get 226.66 and 340 for the other two children.

:)

5 0
1 year ago
Kristin arranged 9 flowers in a vase 5 of the flowers were tulips what fraction of the flowers are tulips
dmitriy555 [2]
5/9 is the answer. because there are 9 total and 5 are tulips
7 0
2 years ago
Imagine that you are a manager facing the problem of not attracting enough high-quality personnel to your organization. Would yo
Ipatiy [6.2K]

Answer:

by committee

Explanation:

this is because it would be easier to do it with a committee than being alone.

6 0
2 years ago
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