Answer:
the interest rate is missing, so I looked for similar questions and found that the semiannual interest rate is 3%.
first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.
You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:
PV = $25,000 / (1 + 3%)¹⁶ = $15,579.17
that is now the future value of our annuity due:
FV = semiannual deposit x FV annuity due factor (3%, 5 periods)
$15,579.17 = semiannual deposit x 5.46841
semiannual deposit = $15,579.17 / 5.46841 = $2,848.94
To predict the total costs for 3,000 birdcages:
Use the average cost per unit of $18.00 and multiply it by 3,000.
($18)(3,000)= $54,000
$54,000 is the predicted total costs of 3,000 birdcages.
Answer:
B) should pack her bags for the trip; she earned it
Explanation:
In this scenario, it can be said that if the client purchases that annuity, the agent should pack her bags for the trip; she earned it. Since the annuity that has been recommended by the agent is offering her an incentive, and the agent fully disclosed that fact to the client, then she did her duty correctly. In the case that the client decides to purchase the annuity, they do so with full knowledge of the potential conflict of interest.
<u>Solution and Explanation:</u>
Required Return after 5 year = Real rate of return + Inflation premium + Risk premium
Required Return after 5 year = 5+2+4
Required Return after 5 year =11%
No of year left to maturity = 25
Annual Interest payment = 15%*1000 = 150
Face value of Bond = 1000
New price of the bond = pv (rate, nper, pmt, fv)
New price of the bond = pv (11%,25,150,1000)
New price of the bond = $ 1336.87
Answer:
Disability benefit = $5,040
Explanation:
Given:
Pay off per week = $600
Insurance coverage = 70 percent = 0.70
Waiting period = 4 week
Computation of disability benefits:
Disability benefit = Per Week benefit × Total Number of Covered weeks
= (Insurance coverage × Pay off per week) × (off work - Waiting period)
= (0.70 × $600) × (16 - 4)
= $420 × 12
= $5,040
