Answer:
The beneficiary should receive 6 more years of payment.
Explanation:
An annuity certain option guarantees that the insured or his/her beneficiaries will receive payments for a minimum period of time in case the insured dies.
In this question the certain option was 10 years, during the first 4 years the insured received his/her annuity payments, but once the insured passed away, his/her beneficiaries will continue to receive payments until the 10 year period ends (6 more years).
if Logan received a $2,500 bonus and his mps is 0.20, his consumption rises by $2,000 and his savings rises by $500
Answer:
The correct option is D,$29.37
Explanation:
The intrinsic value of the company is the present value of the dividends plus the present value of the terminal value in year 3
present of dividends=$1.74/(1+7%)+$1.87/(1+7%)^2+$1.98/(1+7%)^3=$ 4.88
Terminal value=dividend after year /cost of capital
=$2.10/7%=$30
present value of terminal value=$30
/(1+7%)^3=$ 24.49
Note that the discount factor of year 3 is applicable to the terminal value as well.
sum of present value of dividends and terminal value=$ 24.49+$4.88=$29.37
Answer:
try to solve their issue or do whatever the hell you're supposed to
