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
natulia [17]
3 years ago
5

Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement. Charl

ie wants to receive the first annuity payment at the end of the 31st year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest $10)?
Business
1 answer:
lara [203]3 years ago
7 0

Answer:

Present value Due = $9,364.92

Explanation:

Given:

Number of payment (n) = 20

Periodic payment (PMT) = $1,000

Rate of interest (i) = 10% = 10/100 = 0.1

Present value of annuity = ?

Computation of Present value of annuity:

Present Value = PMT [\frac{1-(1+i)^{-n}}{i}] (1+i)\\

Present Value = 1,000 [\frac{1-(1+0.1)^{-20}}{0.1}] (1+0.1)\\\\Present Value = 1,000 [\frac{1-(1.1)^{-20}}{0.1}] (1.1)\\\\Present Value = 1,000 [\frac{1-0.148643628}{0.1}] (1.1)\\\\Present Value = 1,000 [\frac{0.851356372}{0.1}] (1.1)\\\\Present Value = 1,000 [\frac{0.851356372}{0.1}] (1.1)\\\\Present Value = 9,364.92

Present value Due = $9,364.92

You might be interested in
In network marketing sales people earn money from their own sales and from what?
Stels [109]
The answer I think it is ,is (B.)
3 0
3 years ago
Read 2 more answers
Demand is not the same as quantity demanded. What factors will change the demand for a good?
DochEvi [55]

Answer:

Other factors that shift demand curves. Income is not the only factor that causes a shift in demand. Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations.

6 0
2 years ago
Question 5 of 10
worty [1.4K]
I think the answer is D
4 0
3 years ago
Read 2 more answers
Griffin has been a new manager for a couple of weeks. Over time, he realizes his team likes to socialize during meetings, which
Nikitich [7]

Griffin should report the recurring problem to employees via explanatory email that demonstrates the importance of meetings for organizational effectiveness. Create alternative methods of speech at meetings. Decrease meeting times when possible and focus on the most relevant points. Establish overtime socializing warning policies.

5 0
3 years ago
Read 2 more answers
Theodore Enterprises had the following pretax income (loss) over its first three years of operations: 2016 $ 500,000 2017 (900,0
m_a_m_a [10]

Answer:

$450,000

Explanation:

Theodore Enterprises had the following pretax income (loss) over its first three years of operations:

2016 $ 500,000

2017 (900,000 )

2018 1,500,000

For each year there were no deferred income taxes and the tax rate was 30%. In its 2017 tax return, Theodore elected a net operating loss carryback. No valuation account was deemed necessary for the deferred tax asset as of December 31, 2017.

Therefore Theodore's income tax expense for 2018 is 30% x 1,500,000  = $450,000

Loss carry back is when a business elects to net off losses against a previous year's return as opposed to loss carry forward which is the future years' return.

4 0
3 years ago
Read 2 more answers
Other questions:
  • "the number of items in a product line represents the​ __________ and the total number of product lines a company carries repres
    10·1 answer
  • Consider the following statements regarding traditional costing systems:
    5·1 answer
  • Runaround Corporation sells running shoes and during January they ran production machines for 29 comma 000 hours total and incur
    9·1 answer
  • Which of the following is most necessary for specialization among producers to take place? A. Free trade B. Competition C. Scarc
    12·2 answers
  • Preissle Company, wants to sell some 20-year, annual interest, $1,000 par value bonds. Its stock sells for $42 per share, and ea
    13·1 answer
  • You have been instructed to place an order for a client to purchase 500 shares of every IPO that comes to market. The next two I
    14·1 answer
  • What do 'less is more 'mean in a relation to slide presentations
    15·1 answer
  • Scot and Vidia, married taxpayers, earn $92,000 in taxable income and $5,000 in interest from an investment in City of Tampa bon
    14·1 answer
  • the liability created when supplies are bought on account is called an account payable ,true or false​
    10·1 answer
  • Enterprise Machinists is always improving upon its core competencies by training its machinists constantly so that they are equi
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!