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inn [45]
3 years ago
12

wants to use the capital retention approach to determine how much life insurance to purchase. Robert would like to provide $35,0

00 per year to his family, forever, if he dies. The assets he owns today will provide $25,000 in annual income without the liquidation of these assets. If life insurance proceeds can be invested to earn a 5 percent annual return, how much life insurance should Robert purchase (if any) to fund the additional income needed to meet his $35,000 annual income goal
Business
1 answer:
Trava [24]3 years ago
7 0

Answer: $200,000

Explanation:

Robert's wants to provide $35,000 per year to his family after he dies

Amount which will be catered for by the asset he owns today = $25,000

Life insurance earns 5% annual return

The amount of life insurance which should be purchased ;

Amount required from insurance proceed:

$35, 000 - $25000 = $10000

If insurance earns 5% per annum;

Let Amount of life insurance bought = y

y * 5% = required amount from insurance

y * 0.05 = 10,000

0.05y = 10,000

y = 10000 ÷ 0.05

y = $200,000

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To determine the effective gross income on a property, the sales associate should:________
artcher [175]

Answer:

Subtract vacancy and credit costs from potential gross income

Explanation:

Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.

It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.

EGI is used to determine the value of a rental property and the cash that the property generates.

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3 years ago
If investors believe that a stock is not providing a return that sufficiently compensates them for the risk of the stock, they w
jarptica [38.1K]

Answer:

<u>sell the stock which will drive it's expected return even lower.</u>

Explanation:

An investor wants to be compensated for the risk undertaken in the form of return. When investors believe that a stock is not providing sufficient return, such stocks would be sold by the investor.

When a stock is not performing well i.e it's current market price goes down, all the investors holding that stock will sell it , leading to it's market price going further down.

Since the market price goes further down, the expected return on such a stock would further decline.

3 0
2 years ago
How long will it take for a $4000 investment to grow to $6000 at an annual rate of 15%, compounded monthly? Assume that no withd
Inessa05 [86]

Answer:

It will take 2.72 years and 32.64 months.

Explanation:

Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.

Use following formula to calculate the time period.

FV = PV x ( 1+ r )^n

FV = Future value = $6,000

PV = Present Value =  $4,000

r = rate of interest = 15% yearly = 15% / 12 = 1.25%

n = time period = ?

$6,000 = $4,000 x ( 1 + 1.25% )^n

$6,000 = $4,000 x ( 1.0125 )^n

$6,000 / $4,000 = ( 1.0125 )^n

1.5 = ( 1.0125 )^n

Log 1.5 = n log 1.0125

n = Log 1.5 / log 1.0125

n = 32.64 months

n = 2.72 years

6 0
3 years ago
Comparing the life of a company president or ceo with a dishwasher or taxi driver shows us glaring examples of ______.
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Comparing the life of a company president or ceo with a dishwasher or taxi driver shows us glaring examples of social inequality.

<h3>What exactly is socioeconomic inequality?</h3>

Social inequality is defined as a scenario in which certain citizens of a country, a region, a section of the world, or both, are disparately or disadvantaged from others who are unfairly privileged. Logically speaking, it is the polar opposite of social equality.

Modern civilizations struggle with social inequality, which is a result of the uneven development of different parts of the world and the imposition of particular ideologies or human value judgments on some people over others. In fact, social inequality is the root of discrimination, which is the practice of treating individuals who are weaker than others in terms of their morals, social standing, or economic standing differently.

To know more about social inequality visit:

brainly.com/question/27164458

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5 0
1 year ago
An ad for Maybelline age-minimizing makeup in Ladies' Home Journal magazine featured actress Gigi Hadid and offered readers a $2
marysya [2.9K]

Answer:

Home Journal magazine

Explanation:

In communication, medium is what the message is conveyed on. It is the system or channel through which a message is transmitted from the sender to the recipient. The modern medium used in advertising is in the electronic format and includes the internet, telephone, and other electronic devices.

Tradition medium channels are television, radio, and print media such as newspapers and magazines.  The ad for Maybelline age-minimizing appears in a magazine. The  Ladies' Home Journal magazine is the medium for the ad.

6 0
3 years ago
Read 2 more answers
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