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
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

You might be interested in
Competency: Communication Concepts
Nadusha1986 [10]

Answer:

A. His sending note was a thoughtful gesture

8 0
3 years ago
Select all that apply.
Semenov [28]

Answer:

Wildlife conservationists.

Explanation:

Wildlife conservationists are those people who do the practice of protecting wild species and their habitats to prevent species from going extinct. If anyone wants to make a career in Agriculture, Food & Natural Resources, he/she must have to know which species are endangered now and which species might be endangered in the future. Along with this, they must have to understand how those species could be saved from being extinct. After knowing all of these, he/she might select their career as a wildlife conservationist. Among the other three professions which are said in question aren't possible to choose from the side of a person who knows Agriculture, Food & Natural Resources.

7 0
3 years ago
Read 2 more answers
You missed a monthly payment on your mortgage. Your monthly payment is $1,278. Your mortgage holder places a 5% penalty on all t
balandron [24]

Answer:

A. $63.9

Explanation:

Your monthly payment is $1,278 => One-month payment is a fixed amount of $1,278

Your mortgage holder places a 5% penalty on all late payments so that the penalty cost for 1 month late would be 5% of one-month payment.

=> Penalty cost can be calculated as the following equation:

<em>Penalty cost = One-month payment x 5% </em>

<em>= 1,278 x 5 / 100 = $63.9</em>

So total penalty cost would be $63.9

3 0
3 years ago
Read 2 more answers
How to solve the time value of money problems​
erastova [34]

Answer:

The Time Value of Money formula is FV = PV x [ 1 + (i / n) ] (n x t)] where V is the Future value of money, PV is the Present value of money, i is the interest rate, n is the number of impounding periods per year, and t is the number of years.

8 0
2 years ago
If during 2011. the country of Sildavia recorded a GDP of $65 billion. interest paymentsof $15 billiorn imports of $13 billion.
Helen [10]

Answer:

B. $36 billion

Explanation:

Since we were asked to calculate Wages. We can't use the Expenditure method of GDP. Method to be used would be the Income approach. In doing so, the values of export and import would be excluded. Therefore,

Given that

GDP = 65 billion

Profits = 7 billion

Rent = 7 billion

Interest payments = 15 billion

Recall that,

GDP = sum of income earned (profits, wages, rents, interests)

Thus,

Wages = GDP - Profits + rents + interests

= 65 - (15 + 7 + 7)

= 65 - 29

= 36 billion

Hence, wages during 2011 was $36 BILLION.

Note: Parameters used are based on the information in the question. It is important to note that income earned when using income approach could be more than the 4 stated parameters of wages, rent, profits and interests.

6 0
3 years ago
Other questions:
  • In a market, consumers get extra benefits called _____, while businesses receive extra benefits known as _____. consumer surplus
    8·1 answer
  • Great Lakes Packing has two bond issues outstanding. The first issue has a coupon rate of 3.50 percent, a par value of $1,000 pe
    9·1 answer
  • Need answer like, fast.
    13·1 answer
  • Baker's Supply imposes a payback cutoff of 3.5 years for its international investment projects. If the company has the following
    11·1 answer
  • What is an example of secondary data?
    6·1 answer
  • If a U.S. citizen could buy £25,000 for $100,000, the rate of exchange for the pound would be
    6·1 answer
  • Ms. Jessup teaches 7th grade. Her students do not pay tuition to attend her school. Which describes the type of school that Ms.
    12·2 answers
  • The​ problem-solving model phase where you determine a performance discrepancy that might be caused by an outdated system is the
    12·1 answer
  • ¿Por qué implantar el DO en una organización?
    7·1 answer
  • What is a “work point”?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!