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Bas_tet [7]
3 years ago
10

An insurance company has offered your friend the choice of $45,000 per year for 15 years, with the first payment being made toda

y, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity?

Business
1 answer:
TiliK225 [7]3 years ago
8 0

Answer:

$427,011.92

Explanation:

We use the present value formula i.e to be shown in the attached spreadsheet

Given that,  

Future value = $0

Rate of interest = 7.5%

NPER = 15 years

PMT = $45,000

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

And, in type we write the 1 instead of 0

So, after solving this, the present value is $427,011.92

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What will happen to the equilibrium price and quantity of airline fares as a result of the following two simultaneous changes (a
marin [14]

Answer:

Equilibrium quantity would increase. there would be an indeterminate effect on equilibrium price

Explanation:

If fewer people go on vacation fewer people would board planes. As a result, the demand curve for planes would shift inwards. This would lead to a decrease in equilibrium price and quantity.

As a result of the higher cost of providing services, fewer planes would be in operation. This would lead to an inward shift of the supply curve. Equilibrium price would increase and equilibrium quantity would decrease.  

Taking this two effects together, equilibrium quantity would increase. there would be an indeterminate effect on equilibrium price.

3 0
3 years ago
Telstra, Australia's largest telecommunications and media company, has net revenue of more than $ 26 billion (Australian). Some
klasskru [66]

The items included in its recent annual consolidated Dividends statement of cash flows presented using the direct method are listed.

1. Receipts from customers ------------- Operating Activities (O)

2. Dividends paid ----------- Financing Activities (F)

3. Payment for share buyback --------- Financing Activities (F)

4. Proceeds from the sale of property, plant, and equipment ------  Investing Activities (I).

5. Repayments of borrowings ------- Financing Activities (F)

6. Income taxes paid  ------------ Operating Activities (O)

A dividend is a distribution of profits by means of a business enterprise to its shareholders. while a organization earns a profit or surplus, it is able to pay a percentage of the earnings as a dividend to shareholders. Any quantity now not dispensed is taken to be re-invested within the commercial enterprise.

Dividends are bills a business enterprise makes to share earnings with its stockholders. they're paid on an ordinary basis, and they're one of the methods investors earn a return from making an investment in stock.

Learn more about Dividends here:-brainly.com/question/25845157

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4 0
2 years ago
One reason buy a home instead of rent a home is
xxTIMURxx [149]
<span>By renting a home instead of purchasing one, you are paying someone else's mortgage every month and getting nothing in return. While you are gaining a home to live in for the short term, in the long term you will gain nothing. When you purchase a home you will have a home that you own and that you cannot be evicted from as long as you pay your mortgage.</span>
4 0
3 years ago
Help pleaseeeeeeeeeeeee
valkas [14]

Answer:

Income

Explanation:

A budget shows a plan of how one will spend their income. It is, therefore, a plan of expenditure.  A budget shows total expected income on one side and projected expenditure on the other side. The budget is balanced when income and expenses are equal.

6 0
3 years ago
Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck?
deff fn [24]

Answer

a. Deposits

Explanation

A checking account is a bank account where members can withdraw and deposit money with ease of access. It is mostly used for bill payments and for making personal financial transactions .A checking account allows for check deposits and debit card transactions


6 0
3 years ago
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