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
Answer:
Modified rebuy
Explanation:
A modified rebuy is a buying situation where the buyer wants to modify the product or service specifications, selling terms or vendors. This happens when the product or service that was generally purchased before, or the vendor, didn't fulfill the needs of the company.
Answer:
Proportional tax system
Explanation:
A proportional tax system levies an equal tax rate on everyone regardless of their income level. It is also known as the flat-rate tax because it treats the wealthy, middle class, and low-income earners equally. The proportional tax system simplifies tax filing as the same tax rate will apply to everyone.
The proportions tax system contrasts with the progressive tax system, which bases the tax rate on the taxpayer's income.
