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4 years ago

Why would a deferred annuity or annuities due be preferred as a retirement investment?

Business

2 answers:

tia_tia [17]4 years ago

5 0

One reason a deferred annuity or annuities would be preferred as a retirement investment is the tax deferred nature.

jonny [76]4 years ago

4 0

I believe the answer is: The tax deferred nature.

Investment is considered to has tax deferred nature if the tax payment for the investment can be made years later after its due. This favoured as a retirement plan because it make the investors have more money to spend during the productive years prior to retirement.

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An insurance policy sells for $1200. Based on past data, an average of 1 in 100 policyholders will file a $10 comma 000 clai

Tanzania [10]

Answer:

Expected Value = $740

Expected profit = $22.2m

Explanation:

We can easily calculate the expected value and expected profit/loss in this situation by some minor working

Expected values = Expected Claim - per policy cost

Expected profit/loss = (Expected claim - per policy cost) x number of policies

As you can see per policy cost and no of policies are given in the question data we just need to find expected claim for calculation of expected profit or loss and expected value

Expected Claim = (1/100x$10,000)+(1/250x$40,000)+(1/400x$80,000)

Expected Claim = 100 + 160 + 200

Expected Claim = 460

Now we have a value of expected claim lets put it into Expected profit/loss formula and expected value formula

Expected value = 460-1200

Expected value = -740

-$740 is the value per policy

Expected profit/loss = (460 - $1200 per policy) x 30,000

Expected profit or loss = -22,200,000

Expected loss to the customer = -$22.2 m

Expected profit for the company = $22.2m

3 0

3 years ago

How do you delete awnsers that people post

Natali [406]

You have to be a moderator. That's all I know.

5 0

3 years ago

Read 2 more answers

During the sensorimotor stage of cognitive development, the child:

Lina20 [59]

Answer:

The correct answer is d.

Explanation:

This stage extends from birth to the acquisition of the individual's language. Children build step-by-step knowledge and understanding of the world by coordinating experiences (such as sight and hearing) related to physical interaction with objects (such as grabbing and stepping).

The development of the permanence of the object is one of the characteristic achievements of this stage. Object permanence is the child's understanding that objects continue to exist even though he or she cannot perceive them.

Have a nice day!

4 0

3 years ago

Pfister Corporation has Long-term Assets of $485,000, Current Liabilities of $150,000, Long-term Liabilities of $220,000 and Own

Stels [109]

Answer:

$205,000

Explanation:

Total liabilities=current liabilities+long-term liabilities

total liabilities=$150,000+$220,000

total liabilities=$370,000

total owners'equity plus liabilities=$320,000+$370,000=$690,000

long-term assets+current assets=liabilities+owners'equity

long-term assets=$485,000

current assets are unknown

liabilities+owners'equity=$690,000

let CA represent current assets

$485,000+CA=$690,000

CA=$690,000-$485,000

CA=$205,000

3 0

3 years ago

Graham receives $640,000 at his retirement. he invests x in a twenty-year annuityimmediate with annual payments and the remainin

Sauron [17]

<span>For the amount invested in the 20 year annuity immediate,

the return will be;
r/(1 - (1+r)^-n) = 0.05/(1- 1.05^-20)
= 0.0802425872
= 8.02425872%

Now, return on perpetuity-immediate = 5%

So, 5% + </span>8.02425872% = 13.02425872<span>

for equal returns from both investments,
X = 5/(13.02425872) x 640,000

= $245,695.365

= $ 245,695.36 </span>

6 0

4 years ago