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belka [17]
3 years ago
9

You will pay $7,000 now to purchase a perpetuity which will pay you and your heirs $340 at the end of each year, forever. What i

s the rate of return on this perpetuity?
Business
2 answers:
Katen [24]3 years ago
5 0

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

I hope my answer helps you

Naddika [18.5K]3 years ago
4 0

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

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What does it means to bracket up for money
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Explanation:

Many people assume that when they “move up a tax bracket” every dollar they earn is taxed at a new, higher rate leading to lower take-home pay overall. Thankfully, that isn't the case. When you “move up a tax bracket” you only pay a higher tax rate on the income above a threshold.

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Gilbert would like to foster goal commitment in his department. He decides to do this by encouraging the collaboration of employ
IRINA_888 [86]

Answer: the correct answer is e. Participation

Explanation:

Participation in business appeals to the idea that all individuals in an organization have to get involved since all the personnel in the company are in the same boat and share the same objectives or goals which is to thrive in a competitive business world.

6 0
3 years ago
What is the difference between human capital and capital goods?
Furkat [3]

Answer:

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3 0
3 years ago
A diamond poem for economy
ioda

here is the poem! hope you like it :)

Explanation:

There are some economic ways to live

to prevent monitary disaster

try being thoughtful when you try to give

you will always grow happier faster

conserve and waste not for it shall have cost

money you save is the money you earned

it is hard to get back what you have lost

show every one the knowledge you have learned

try to buy what you need and nothing more

being over indulgence is not good

do not hang out at the department store

would try to go to the park if I could

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7 0
3 years ago
Sylvia's annual salary increases from $100,500 to $109,500. Sylvia decides to increase the number of vacations she takes per yea
Tasya [4]

Answer:

Ei=3.33

Normal good

Explanation:

SOLUTION

Using the midpoint method to calculate her income elasticity

Ei=(Q2-Q1) /(I2-I1)*(I2+I1)/(Q2+Q1)

Q2=4 I2=109,500

Q1=3 I1=100,500

Ei=(4-3)/(109,500 - 100,500) *(109,500+100,500)/(4+3)

Ei=1/9000*210,000/7

Ei=3.33333333

Approximate to two decimal places

Ei=3.33

8 0
3 years ago
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