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
barxatty [35]
3 years ago
11

Assume that at retirement you have accumulated $500,000 in a variable annuity contract. The assumed investment return is 6%, and

your life expectancy is 15 years. What is the hypothetical constant-benefit payment?
Business
1 answer:
Alexeev081 [22]3 years ago
7 0

Answer:

The hypothetical constant-benefit payment is <u>$51,481.38</u>.

Explanation:

This can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value accumulated retirement benefit = $500,000

P = Annual hypothetical constant-benefit payment = ?

r = investment return = 6%, or 0.06

n = life expectancy = 15

Substitute the values into equation (1) and solve for P, we have:

$500,000 = P * [{1 - [1 / (1 + 0.06)]^15} / 0.06]

$500,000 = P * [{1 - [1 / 1.06]^15} / 0.06]

$500,000 = P * 9.712248987741

P = $500,000 / 9.712248987741

P = $51,481.38

Therefore, the hypothetical constant-benefit payment is <u>$51,481.38</u>.

You might be interested in
On January 1, Salter Corporation determined that its direct materials inventory needs to contain 6,000 pounds of materials by Ma
Ber [7]

Answer: 21000

Explanation:

Direct materials inventory desired = 6,000

Purchase of direct materials budgeted = 5000

Pounds needed for production = 5000 × 4 = 20000

The number of pounds in Salter's beginning direct materials inventory on January 1 will be:

= Direct materials inventory desired + Pounds needed for production -

Purchase of direct materials budgeted

= 6000 + 20000 - 5000

= 21000 pounds

5 0
2 years ago
Performance of which activities are most likely to improve in front of an audience?
Firlakuza [10]
<span>Well practiced activities are most likely to improve when performed in front of an audience. On the flip side, if an activity is ill-practiced, the performer is more likely to flub the performance. But practice enhances performance, and so anyone wanting to demonstrate a good show of something should practice it intently beforehand.</span>
7 0
3 years ago
Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market. The workers and their valu
Irina-Kira [14]

Answer:

In equilibrium, each worker is paid his or her value of the marginal product of labor.

Explanation:

Here are the missing option of the question:

  • In equilibrium, each worker is paid his or her value of the marginal product of labor.
  • Each worker is paid a wage equal to the highest value of the marginal product of labor(i.e., $40)
  • Each worker is paid $15.
  • We need to know the product price before we can figure out the wage rate.

As per marginal theory of productivity of income distribution, Income of each factor production is equal to its marginal productivity.

Marginal productivity is one additional unit of production by one unit additional unit of factor, which bring changes in total production. Firm hire labor till marginal revenue product of labor is more than wage rate of labor. The point at which Marginal revenue product of labor is equal to wage rate labor is the labor market equilibrium.

6 0
3 years ago
Mirr, Inc. was incorporated on January 1, 2010, with proceeds from the issuance of $750,000 in stock and borrowed funds of $110,
murzikaleks [220]

Answer:  the correct answer is $ 885,000

Explanation:

Mirr began operations on January 1, 2010

Assets= Liabilities + Patrimony or owner's equity

$860,000 = $110,000+ $750,000

In the first year liabilities grew to $120,000 and patrimony increased to $765,000 which is $750,000 beginning balance + $18,000 ($82,000 revenues - $64,000 expenses) - $ 3,000 declared dividends.

So for December 31, 2010 the assets should be

$885,000 = $120,000 + $ 765,000.

4 0
3 years ago
Suppose a carton of hockey pucks sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If pur
bija089 [108]

Answer:

The price of Hockey Pucks in the United States is 74.55 U.S dollars.

Explanation:

Purchasing Power Parity (PPP) is said to hold when two currencies are in equilibrium (at par), and it is an economic theory that compares different currencies through an approach known as 'basket of goods approach'.

A PPP is said to exist when the same unit of good is priced the same in two different countries, taking into consideration the exchange rate of both currencies. PPP rates are considered more accurate measures than market exchange rates, because market exchange rates are influenced by several factors such as government intervention, different interest rates, speculation trading and edging.

PPP are also quite difficult to determine because of differences in purchasing habits, unequal qualities of the goods in the countries and differences in each country's economy, but once PPP is determined, it remains relatively constant over a long run.

Mathematically PPP is calculated as;

S=\frac{P_1}{P_2} where;

S = exchange rate of currency 1 to currency 2 =

P₁ = cost of good X in currency 1

P₂ = cost of good X in currency 2

currency 1 = Canadian dollars

Currency 2 = U.S dollars

S = currency 1 : currency 2 = 1 : 0.71 = 1.4085

P₁ = 105 Canadian dollars

P₂ = ???

∴ S=\frac{P_1}{P_2}

P_2=\frac{P_1}{S}

P₂ = \frac{105}{1.4085} \\ = 74.55 U.S dollars.

3 0
3 years ago
Other questions:
  • Strait Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total
    15·1 answer
  • "The average monthly rent for a two-bedroom apartment in City A is $820 with a standard deviation of $86. The average monthly re
    15·1 answer
  • Problem Page Watson Company's employees earn $290 per day and are paid on Friday for a five-day work week. This year, December 3
    11·1 answer
  • A sole proprietorship that began business's May 1, 2018, incurred $9000 of startup expenses. If the business elects to report th
    8·1 answer
  • A free rider problem arises when_________.
    11·1 answer
  • If the market price ​'Pmkt​' is above the price ​'P0​', then quantity supplied is_________ equal to greater than quantity demand
    9·1 answer
  • How can the US of new technology in industry benefit workers
    6·1 answer
  • Following is an extract of account balances of Wilson Mowing Services as of December 31 of the first year of operation. Accounts
    7·1 answer
  • If I were a salesmen, how could I sell 10 boxes of burritos?
    7·1 answer
  • What are the four basic factors that effect workplace safety?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!