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
IceJOKER [234]
3 years ago
11

Larry’s Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $32,000 per year forever.

Assume the required return on this investment is 7.2 percent.
How much will you pay for the policy? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Harman [31]3 years ago
4 0

Answer:

$444,444.44

Explanation:

Larry's life insurance corporation is trying to sell an investment policy that will pay you and your heirs a total amount of $32,000 per year

The required return on this investment is 7.2%

= 7.2/100

= 0.072

Since the cash flow is a perpetuity then, the amount that will be paid for the policy can be calculated as follows

PV= C/r

= $32,000/0.072

= $444,444.44

Hence the amount of money that will be paid for the policy is $444,444.44

You might be interested in
The price of gold is currently $1,200 per ounce. The forward price for delivery in one year is $1,400. An arbitrageur can borrow
max2010maxim [7]

Answer:

I Dont know

Explanation:

sorrrrrrry I will try next time

4 0
2 years ago
You purchase a $30, nonrefundable ticket to a play at a local theater. Ten minutes into the show you realize that it is not a ve
Murljashka [212]

Answer:

1) You should go home and watch TV.

Explanation:

Since you value seeing the play $10, then you should leave the theater and go to your house to watch TV since that has a higher value for you ($12).

We are talking about opportunity costs here. Opportunity costs are the extra costs or benefits lost from choosing one activity or investment over another. In this case the opportunity costs are:

  • watch the play = $10
  • watch TV = $12
  • read a book = $8

Since watching TV is more valuable to you, then that is what you should be doing.  

3 0
3 years ago
A tariff or quota will _____ prices and _____ the consumption of the protected goods in the importing country.
Vadim26 [7]
Raise;decrease is the answer to this question
3 0
3 years ago
Read 2 more answers
Assume an economy is currently engaged in free trade but considering implementing a tariff on its main import, athletic shoes. W
UNO [17]

Answer:

Price - increase

Domestic production- increase

Import- reduces

Producer surplus- increase

Explanation:

A tariff is a form of tax on import or export.

When a tariff is imposed on a good , the price of the good increases.

As a result of the tariff , the amount of the goods imported falls as the imported good is now more expensive. The quantity produced by domestic producers increases as consumers would now start demanding for the domestic good. Tariffs are sometimes enacted to discourage importation and encourage domestic production.

As a result of the price increase, producer surplus increases. The increase in price also increases output. The producer surplus is the difference between the price of a product and the least amount the producer is willing to sell his product.

I hope my answer helps you.

7 0
3 years ago
An ISP is granted a block of addresses starting with 150.80.0.0/16. The ISP wants to distribute these blocks to 2600 customers a
stepan [7]
A the first groupings has 200 medium-side busi es-es each needing 128 addresses
4 0
3 years ago
Other questions:
  • Warehouse W’s revenue from the sale of sofas was what percent greater this year than it was last year? (1) Warehouse W sold 10 p
    6·1 answer
  • Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of p
    12·1 answer
  • Money makes trading easier by replacing what with transactions involving paper money, coins, and checks.
    8·2 answers
  • Audience quality, audience engagement, and editorial quality are most likely to be considered when a media planner ________.
    15·1 answer
  • Reasons why biden/trump would make a good president WITHOUT mentioning the opposing canidate.
    5·2 answers
  • Which descriptions offer examples of Management workers? Check all that apply.
    14·2 answers
  • The government can shift or influence supply in a market by providing subsidies (money) to businesses or by taxing them heavily.
    8·1 answer
  • On January 1, 2021, for $17.9 million, Seashells Company issued 8% bonds, dated January 1, 2021, with a face amount of $19.9 mil
    10·1 answer
  • Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after
    15·1 answer
  • When one company acquires control of another, how are the acquired company's assets and liabilities recorded?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!