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
Andrew [12]
3 years ago
5

Sam was injured in an accident, and the insurance company has offered him the choice of $25,000 per year for 15 years, with the

first payment being made today, 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:
stiv31 [10]3 years ago
6 0

Answer:

The lump sum be of $237,228.84

Explanation:

In order to calculate how large must the lump sum be we would have to use  and calculate the formula of Present value of annuity due as follows:

Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate

Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075

Present value of annuity due=$25,000*9.489153726

Present value of annuity due=$237,228.84(Approx)

The lump sum be of $237,228.84

You might be interested in
Describe an important difference in the way an economist and a businessperson might view a monopoly.
Umnica [9.8K]

Answer:

<h3>An economist would view a monopoly as not beneficial and optimal to society. A businessperson would view monopolies as a great idea to maximize profits due to the lack of competition</h3>

Explanation:

hope it's helps you if i am sorry if my answer is wrong

8 0
3 years ago
Drudgen Fitness Inc. is a fitness equipment provider that markets its products through a chain of retailoutlets in four states.
Anarel [89]

Answer:

4) buying and installing new computers in the new outlets

Explanation:

The five component model of information systems includes what a company needs to create is IT infrastructure and it includes:

  1. people: I firmly believe that people are the most important component of any system, at least until AI replaces us.
  2. hardware: refers to the equipment needed (e.g. computers, etc.)
  3. software: includes both system (windows or linux) and applications software (e.g. ERP software)
  4. database: the place where collected data is stored, e.g. physical storage devices or cloud storage
  5. network: the connections needed for different hardware to work together, e.g. cables, routers, internet service
8 0
3 years ago
The _________ __________ of a speech are the major ideas that you will relay to receivers through your speech.
Eddi Din [679]
The main points of a speech are the major ideas that you will relay to receivers through your speech. This is the important point you want the audience to bear in mind. This is the primary purpose <span>of your speech. This is the backbone of your talk that you believe would be useful for the audience. The main points usually </span>have<span> these three basic needs – the claim, the explanation, and the evidence. You want to claim something so you are going to explain it to your audience. In order to persuade your audience, you will be providing evidences supporting your claims.</span>
5 0
3 years ago
If the par value of a stock is $5 and the offering price of the stock is $2, the capital in excess of par is:
mr_godi [17]
You cannot compute for the capital in excess of par since you don’t have the number of shares but let us assume there are 100,000 shares.

If the Company sell 100,000 shares of its common stock for $2 per share, and the par value of each share is $5, then the amount of the capital in excess of par is 100,000 shares x $3/share, = 300,000 and is recorded:

Cash 500,000  

      Common stock ($2 x 100000) 200000

      Additional Paid-In Capital($3 x 100000) 300000
4 0
4 years ago
Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,000 in investment expenses. T
Reil [10]

Answer:

Please check the following explanation

Explanation:

Capital losses are not included in the calculation of net investment income. Therefore, $2,000 long-term capital loss would have no effect on investment income. Thus, Porters' investment income will remain $2,500.

Consequently, Porters' can deduct $2,500 of the investment interest expense and the remaining $500 of investment interest expense will be carried over to next year.

4 0
3 years ago
Other questions:
  • Carmen is having her basement refinished. She notices that the flooring was installed hastily and is uneven. Who should she talk
    14·1 answer
  • Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of go
    7·1 answer
  • Which of the following would be an effective way to let a national producer of children’s toys know that its products are substa
    11·1 answer
  • Benjamin co. has three products a, b, and c, and its fixed costs are $67,200. the sales mix for its products are 3 units of a, 4
    14·1 answer
  • Your job is to submit a risk diagnosis to the Centers for Medicare &amp; Medicaid Services (CMS) for the purpose of payment. As
    6·1 answer
  • Using contract manufacturing as a strategy to reach global markets gives firms the advantage of
    11·1 answer
  • An electronics company is trying to decide how many new computers it should produce for export to China. Which factor would most
    15·2 answers
  • The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventor
    15·1 answer
  • Waterway Industries started the year with $66000 in its Common Stock account and a credit balance in Retained Earnings of $48400
    9·1 answer
  • Explain the impact of taxation on the valuation of a country's currency
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!