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3 years ago

10

Shauntae is 75 years old. he purchased a single life annuity contract that will pay him $3,000 per month for 10 years. the expec

ted return under the contract is:

1 answer:

bixtya [17]3 years ago

3 0

The answer is, 3,000x 12= 36,000
36,000 x 10 years = 360,000

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viva [34]

The values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively.

<h3>How to illustrate the information?</h3>

The price of Bond 1 = RM7,892.93, Bond is selling at a discount because the bond price is less than the Par value

Price of Bond 2 = RM10,000, Bond is selling at par, because the bond price is equal to the par value

Price of bond 3 = RM11,240.90 Bond is selling at a premium because the bond price is more than the par value

The yield to maturity (YTM) is the estimated rate of return. The yield to maturity assumes that the buyer of the bond will hold the bond until its maturity date, and will then reinvest each interest payment at the same interest rate. Therefore, the yield to maturity includes the coupon rate that's within its calculation. The yield to maturity is also known as the redemption yield.

The YTM will be:

= [1800 + (18000 - 21800)/10] / [(18000 + 21800)/2]

= (1800 - 380)/19900

= 1420/19900

= 7.14%

Therefore the values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively and the YTM is 7.14%

Learn more about bonds on:

brainly.com/question/25965295

#SPJ1

6 0

2 years ago

Which of the following would be included in the Lease Receivable account? I. Guaranteed residual value. II. Unguaranteed residua

mixas84 [53]

Answer:

Guaranteed residual value, Unguaranteed residual value and Rental payments.

Explanation:

I. Guaranteed residual value, II. Unguaranteed residual value, and IV. Rental payments will all be included in Lease Receivable account EXCEPT executory cost which is already included in the rental payment.

Executory cost refers to the cost of normal expenses associated with owning a leased asset, including insurance, maintenance, and taxes.

Executory costs are paid by the lessee and they are included as part of the rental payment or a pass through expense paid directly by the lessee.

3 0

3 years ago

On October 1, year 14, Park Co. purchased 200 of the $1,000-face-value, 10% bonds of Ott, Inc., for $220,000, including accrued

lana [24]

Answer:

Bond receivable - Ott Inc 200,000

Premium on B.R Ott Inc 14,400

Interest receivables 10,000

Net: 224,400

Explanation:

As Park Co uses straight line method, we don't have to solve for the present value of the bond we directly label the difference between cost and face value as premium or discount accordingly. Premium when above and discount when lower.

accrued interest:

200 bonds x $1,000 each x 10% x 3/12 = 5,000

220,0000 cost - 5,000 interest - 200,000 face value = 15,000 bond premium

Balance at December year 15:

the interest payable will be for the entire period:

200,000 x 10% / 2 = 10,000

the premium will be amortized for 3 month.

and it has outstanding 75 month to mature from October 1st

15,000 x 3 / 75 months = 600

carrying value 15,000 - 600 = 14,400

8 0

3 years ago

Which fiscal policy would be the most contractionary?  A. A $40 billion increase in taxes B. A $50 billion increase in governmen

Elena L [17]

Answer: Option (C) is correct.

Explanation:

Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.

A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing the government spending by $50 billion.

B. It is an expansionary fiscal policy.

D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.

Therefore, Option (C) is having the most contractionary fiscal policy.

5 0

3 years ago

Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra

Gnom [1K]

Answer:

Product warrant liability to be reported as on 31.12.2021* is $3.124

<em>*The procedures are attached in a microsof excel document. </em>

Explanation:

This amount will be recognized as a liability only if product warranty amount can be rmeasured reliabily and there is probability that there will be an outflow of funds.

6 0

3 years ago