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
Luba_88 [7]
3 years ago
15

A student deposits $1,642 in the bank that pays 6.2% interest yearly (using yearly compounding). After 5 years he withdraws the

money from the account and deposits it in perpetual annuity with interest rate 7.5%, that pays X amount yearly. Find X.
Business
1 answer:
tamaranim1 [39]3 years ago
6 0

Answer:

the perpetuity will pay the student 166.36 dollar per years

Explanation:

First, we solve for the amount of the original investment after 5 years:

Principal \: (1+ r)^{time} = Amount

Principal 1,642.00

time 5.00

rate 0.06200

1642 \: (1+ 0.062)^{5} = Amount

Amount 2,218.17

<u>Then, this goes into a perpetual annuity at 7.5%</u>

2,218.17 x 0.075 = 166.3630983 = 166.36

the perpetuity will pay the student 166.36 dollar per years

You might be interested in
The payroll register of Seaside Architecture Company indicates $820 of social security and $224 of Medicare tax withheld on tota
Sergio [31]

Answer:

The payroll tax expense is $1754.20

Explanation:

7 0
3 years ago
If Congress passes a plan to cut the national debt in half, then:
Alenkasestr [34]

Answer:

3) AD shifts right and output would decrease.

Explanation:

Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.

If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.

The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.

The AD curve will shift back to the left as these components decreases.

5 0
3 years ago
In this scenario, Frankie must consider whether making one choice will force him to give up another.
aksik [14]
Based on the scenario above, the economic concept which Frakie is faced with is OPPORTUNITY COST. Opportunity cost refers to a benefit or value that a person could have received but which he gave up in order to take another course of action. Thus, an opportunity cost represents an alternative given up when a decision is made.
5 0
3 years ago
Read 2 more answers
The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.

7 0
3 years ago
Which of the following is a reason that single sourcing is considered risky/bad?a. Larger orders make quantity discounts more li
Alinara [238K]

Answer:

The correct answer is letter "B": There could be supplier interruptions due to political instability.

Explanation:

Single sourcing refers to a company deciding to choose one particular supplier -even if there are many options from where to select- because of a specific reason. The greater disadvantage of this situation is relying on one supplier for the manufacturing process which at a certain point could bring <em>instability </em>in front of different issues inherent or not to the supplier.

6 0
3 years ago
Other questions:
  • In the market for​ jeans, which of the following events increases the demand for a pair of​ jeans? A. The price of denim cloth f
    10·1 answer
  • Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
    7·1 answer
  • Which of the following options correctly completes the sentence?
    9·1 answer
  • Simone is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work an
    13·1 answer
  • Nikki, the design and development manager at Holden Outerwear, says she likes "taking something everyone does every day and doin
    9·1 answer
  • On January 1, Greene Inc. issued $5,000,000, 9% bonds for $4,685,000. The market rate of interest for these bonds is 10%. Intere
    12·1 answer
  • How do working conditions and company's image motivate employees?
    9·1 answer
  • You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
    11·1 answer
  • Match the tasis with the professionals who do them
    15·2 answers
  • A brief description of the contract and the parties involved
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!